aggregated_summary

Does the Petro Stopping Center franchise agreement provide a summary of the restrictions on what the franchisee may sell?

Petro_Stopping_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL]

Provision Section in Agreement Summary
other representative may appoint a manager to
operate the Petro Center if the Petro Center is not
being managed by a trained manager. Pending
appointment, we may appoint a manager and
charge a reasonable management fee.
q. Non-competition covenants during the term of the franchise Section 12 Non-Compete Covenant During the term of the Franchise Agreement and, for a period of 2 years thereafter, neither you nor any of your Owners (nor any of your or your Owners' spouses or children) will have any direct or indirect interest as a disclosed or beneficial Owner, investor, partner, director, officer, employee, franchisee, licensee, consultant, operator, licensor, manager, representative, landlord, sublandlord, tenant or agent or in any other capacity in any Competitive Business operating: within the Protected Area (if any) and (A) including at the Site; (B) within 75 miles of the Protected Area (if any), and if not, within 75 miles of the Site, and including at the Site; (C) within 75 miles of any other Petro Center (franchised or otherwise) in operation or which is under construction and granted the right to operate in such area; or (D) anywhere in the United States or Canada in connection with a regional or national chain operating a Competitive Business (including but not limited to Pilot, Flying J, Bosselman, Love's, or Sapp Bros.) Covenant Not to Solicit During the term of the Franchise Agreement and, for a period of 2 years thereafter, neither you nor any of your Owners will entice or induce or in any manner influence any Person, who is in our or our Affiliates' employ at a management level, to leave such employ or discontinue such service. Covenant Not to Divert Business During the term of the Franchise Agreement, neither you nor any of your Owners (nor any of your or your Owners' spouses or children) will divert or attempt to divert any business or any customer of a Petro Center to any Competitive
Provision Section in Agreement Summary
---- ------------------------------------------------------------------------------ ---------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
which offers any of the Services, including to
a gas station, restaurant, or convenience store, by
direct or indirect inducement or otherwise, or do
or perform directly or indirectly any other act
injurious or prejudicial to the goodwill associated
with our Marks or System, or in any way
negligently or intentionally interfere with your
Petro Center or our business or prospective
business.
These covenants may be subject to applicable
state laws.
The Franchise Agreement defines a Competitive
Business as: "Any truckstop or travel center
business or service center that (i) provides the
same or similar services as the Services offered
at a Petro Center, or (ii) which in any way
utilizes the Confidential Information, the Petro
System or the Marks (other than a Petro Center
operated under a Franchise Agreement with us)."
r. Non-competition covenants after the franchise is terminated or expires Section 19.4 See 17(q) above re: two year period after termination or expiration of the franchise agreement. Additionally, you may not lease, license or otherwise permit the site to be used by a regional or national chain operating a Competitive Business under a substantially uniform name and image for a two year period after termination or expiration of the franchise agreement.
These covenants may be subject to applicable
state laws.
s. Modification of the Franchise Agreement Sections 7 and 21.16 Petro Franchise may modify the Petro System Standards (including the Marks) and the Manuals; implement changes to the Services, Products or other items, approve additional Approved Suppliers, develop additional Preferred Vendor Programs, and modify Computer System specifications for hardware and software. Modification of the Franchise Agreement requires both parties to sign a written agreement.
Provision Section in Agreement Summary
---- --------------------------------------------------- ---------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
t. Integration/merger clause Section 21.16 The
Franchise
Agreement,
including
the
introduction,
addenda
and
exhibits
to
it,
constitutes the entire agreement between you and
us.
There are no other oral or written
understandings or agreements between you and
us concerning the subject matter of the Franchise
Agreement. Nothing in the Franchise Agreement
or in any related agreement is intended to
disclaim
the
representations
made
in
the
Franchise Disclosure Document.
u. Dispute resolution by arbitration None Not Applicable
or mediation
v. Choice of forum Section 21.9 For cases where federal jurisdictions would not
exist if the case were brought in federal court, the
state or county court of any city or county where
we have our principal place of business, and, for
all other cases, the United States District Court
nearest to our principal place of business. This
provision is subject to the requirements of
applicable state laws.
w. Choice of law Section 21.7 Ohio law applies (subject to state law).

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, Item 16 provides a summary of restrictions on what the franchisee may sell. The table outlines various provisions within the franchise agreement and summarizes restrictions related to non-competition during and after the franchise term, modifications to the agreement, integration clauses, dispute resolution, choice of forum, and choice of law.

Specifically, the non-competition covenants during the franchise term restrict the franchisee and their owners from having any interest in a Competitive Business within a defined area, including the protected area, within 75 miles of the site or other Petro Centers, or anywhere in the United States or Canada connected with a regional or national Competitive Business chain. These covenants also prevent franchisees from soliciting employees or diverting business from a Petro Center. A Competitive Business is defined as any truckstop or travel center that offers similar services or utilizes confidential information, the Petro System, or the Marks.

After the franchise is terminated or expires, the franchisee is subject to similar non-competition covenants for a period of two years. Additionally, the franchisee cannot lease or license the site to a regional or national chain operating a Competitive Business under a substantially uniform name and image for the same two-year period. Petro Stopping Center retains the right to modify the Petro System Standards, including the Marks and Manuals, and implement changes to services, products, or other items, with modifications to the Franchise Agreement requiring a written agreement signed by both parties.

The Franchise Agreement also includes an integration/merger clause, stating that the agreement, along with its addenda and exhibits, constitutes the entire agreement between the franchisee and Petro Stopping Center. The agreement specifies that Ohio law applies, subject to state law, and outlines the choice of forum for dispute resolution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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