Does the Petro Stopping Center Franchise Agreement specify termination conditions?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
o maintain sufficient liquid funds and bank authorizations to pay amounts to us via electronic transfer on two (2) or more separate occasions during the Term; or
(t) you make an assignment for the benefit of creditors or admit in writing your insolvency or inability to pay your debts generally as they become due; you consent to the appointment of a receiver, trustee or liquidator of all or the substantial part of your Operating Assets; the Petro Center or the Operating Assets are attached, seized, subjected to a writ or distress warrant or levied upon, unless such attachment, seizure, writ, warrant or levy is vacated within 30 days; or any order appointing a receiver, trustee or liquidator of you, the Petro Center or the Operating Assets, is not vacated within 30 days following the entry of such order.
18.3 After Notice. Except as described in Section 18.2 above, and except as otherwise provided by applicable law, we may also terminate this Agreement after we notify you of our intention to do so because of the occurrence of any of the following events and your failure to cure the default specified in our notice to you (the "Default Notice") within 30 days of our Default Notice:
- (a) you fail to make diligent efforts to develop and open the Petro Center in a timely manner, as set forth in Section 5.1(d);
- (b) you fail to keep the Petro Center open during the required hours;
- (c) you purchase or lease any product or service from an unapproved supplier;
- (d) you fail to obtain and maintain permits and licenses required by applicable law;
- (e) if you are a Business Entity, failure to maintain active status in your state of organization;
- (f) you fail to timely make required reports;
- (g) you violate any other provision of this Agreement;
- (h) you fail to maintain any standards or procedures contained in the Manuals;
- (i) your continued violation of any law, ordinance, rule or regulation of a governmental agency; or
- (j) you fail to obtain any approvals or consents required by this Agreement.
- (a) you fail to make diligent efforts to develop and open the Petro Center in a timely manner, as set forth in Section 5.1(d);
18.4 Cross Default.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the Franchise Agreement outlines specific conditions under which Petro Franchise Systems LLC may terminate the agreement. Petro Stopping Center can terminate the agreement if the franchisee fails to correct a default within 30 days of receiving a Default Notice, except as described in Section 18.2 or as otherwise provided by applicable law.
These default conditions include failing to diligently develop and open the Petro Center in a timely manner, not keeping the Petro Center open during required hours, purchasing products or services from unapproved suppliers, and failing to obtain or maintain necessary permits and licenses. Additional causes for termination include failure to maintain active business entity status, failing to submit timely reports, violating any provision of the Franchise Agreement, failing to maintain standards in the Manuals, violating laws or regulations, or failing to obtain required approvals or consents.
The Franchise Agreement also specifies that a default under any agreement between Petro Stopping Center and the franchisee or its affiliates that is material enough to permit termination of any agreement will be considered a default of all agreements. Furthermore, if any agreement is terminated for any reason, Petro Stopping Center has the option to terminate any or all other agreements between the franchisee (or its affiliates) and Petro Stopping Center or its affiliates. This "cross default" provision significantly broadens the circumstances under which Petro Stopping Center can terminate the Franchise Agreement, increasing the risk for franchisees who have multiple agreements with the franchisor.