Does the Petro Stopping Center franchise agreement place restrictions on what a franchisee can sell?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
e. Capital Modifications do not include any expenditures you must, or choose, to make solely in order to comply with applicable laws, or governmental rules or regulations.
- 7.4 Required Purchases. We may require that you purchase from us, or Approved Suppliers, Products, the Proprietary Supplies and/or Motor Fuel. Notwithstanding anything herein to the contrary, we may designate ourself or an Affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel and we have no obligation to evaluate or consider alternative suppliers of Proprietary Supplies or Motor Fuel.
- 7.5 Approved Products. You must not sell Services, Products or other items or services at the Petro Center or otherwise through the Petro Center that we have not previously approved for sale. You must not, without our prior written consent, sell, dispense, give away or otherwise provide products or other items except by means of retail sales to customers at the Petro Center. You must immediately implement changes to the Services, Products or other items requested by us. You must maintain an inventory of Products and capacity to perform the Services sufficient to meet the daily demands of the Petro Center.
- 7.6 Approved Suppliers. We will only approve suppliers who demonstrate to our continuing reasonable satisfaction the ability to meet our standards and specifications; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved in writing by us and not thereafter disapproved. We will furnish to you a list of Approved Suppliers. If you desire to purchase or lease any unapproved product, supplies, service or equipment or purchase or lease any approved product, supplies, service or equipment from an unapproved supplier, you must notify us in writing and request approval.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 66–78)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, there are restrictions on what a franchisee can sell. The franchisee must not sell any services, products, or other items that have not been previously approved by Petro Stopping Center. Furthermore, retail sales to customers at the Petro Center are the only means by which products or other items can be sold, dispensed, or given away without prior written consent from Petro Stopping Center. Franchisees are obligated to implement changes to the services, products, or other items as required by Petro Stopping Center.
Petro Stopping Center retains the right to reject any category of product or services offered for sale at the Petro Center. However, Petro Stopping Center will not unreasonably withhold its approval of any additional product or service categories that a franchisee elects to offer. The franchisee must immediately stop offering or selling any product or service if Petro Stopping Center deems it detrimental to the brand or image of the Petro System.
Petro Stopping Center has the right to modify the authorized goods or services, and the franchisee is obligated to comply with such changes. Additionally, the franchisee may request approval to operate motel/lodging facilities, fast food and deli operations or other business facilities on the Site. If Petro Stopping Center approves the request, the franchisee will operate the additional businesses according to Petro Stopping Center's standards and these businesses will be included in the definition of the Petro Center. The franchisee will not operate any business or facility on the Site unless approved by Petro Stopping Center in writing.