Does the Petro Stopping Center franchisee grant the franchisor power of attorney?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- **10.
Power of Attorney**: The Franchisee does hereby appoint irrevocably the Franchisor as its true and lawful attorney-in-fact in its name and stead and hereby authorizes it, upon any default under the Lease or under the Franchise Agreement, with or without taking possession of the Site, to rent, lease, manage and operate the Site to any Person, firm or corporation upon such terms and conditions in its discretion as it may determine, and with the same rights and powers and immunities, exoneration of liability and rights of recourse and indemnity as the Franchisor would have upon taking possession of the Site pursuant to the provisions set forth in the Lease.
The power of attorney conferred upon the Franchisor pursuant to this Assignment is a power coupled with an interest and cannot be revoked, modified or altered without the written consent of the Franchisor.
- **11.
Election of Remedies**: It is understood and agreed that the provisions set forth in this Assignment are deemed a special remedy given to the Franchisor and are not deemed to exclude any of the remedies granted in the Franchise Agreement or any other agreement between the Franchisor and the Franchisee, but are deemed an additional remedy and shall be cumulative with the remedies therein and elsewhere granted to the Franchisor, all of which remedies are enforceable concurrently or successively.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the franchisee does grant the franchisor power of attorney. Specifically, upon any default under the lease or the Franchise Agreement, the franchisee irrevocably appoints Petro Stopping Center as their attorney-in-fact. This authorization allows Petro Stopping Center, with or without taking possession of the site, to rent, lease, manage, and operate the site to any person, firm, or corporation under terms and conditions that Petro Stopping Center deems appropriate. This includes the same rights, powers, immunities, and rights of recourse and indemnity that Petro Stopping Center would have upon taking possession of the site.
This power of attorney granted to Petro Stopping Center is considered a power coupled with an interest, meaning it cannot be revoked, modified, or altered without the written consent of Petro Stopping Center. This provision provides Petro Stopping Center with significant control over the franchise location in the event of a default by the franchisee, ensuring that Petro Stopping Center can protect its interests and maintain the operation of the Petro Stopping Center business.
The FDD also states that this power of attorney is a special remedy given to Petro Stopping Center and does not exclude any other remedies granted in the Franchise Agreement or any other agreement between Petro Stopping Center and the franchisee. It is an additional remedy that is cumulative with other remedies, all of which are enforceable concurrently or successively. This comprehensive approach ensures that Petro Stopping Center has multiple avenues to address defaults and protect its investment and brand reputation.