Can a Petro Stopping Center franchisee operate from a location not approved by the franchisor?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Site. Without our prior written consent, you may not operate the Petro Center from any location other than the Site. You (with or without our assistance) must, locate a site that we (in our sole judgment) have approved. If you and we have agreed on a Site as of the Agreement Date, it will be designated on Exhibit "C" at this time. Otherwise, the site will be designated on Exhibit "C" upon our approval of the Site. The Site must meet our criteria for the location of a Petro Center (which may or may not include demographic characteristics, traffic patterns, parking, competition from and proximity to other businesses and other Petro Centers and other commercial characteristics and the size, appearance and other physical characteristics of the proposed Site, and any other factors or characteristics we consider appropriate). For each Site selection visit you request to obtain our approval, you must reimburse us our reasonable travel, hotel and meal expenses for such visits. Our criteria, and our evaluation of them, may vary periodically and from location to location. If you and we are unable to agree on a location for the Site, or you have not obtained a fee interest in, or a fully signed lease agreement for, the Site, within 90 days of the Agreement Date, we may terminate this Agreement. Before entering into any lease for a Site (including the building or improvements comprising the Petro Center), you and the lessor must sign our then-current form of Lease Assignment. You must provide the lessor our form of Lease Assignment, attached hereto as Exhibit "D", when you begin negotiations with the prospective lessor. We will approve or disapprove a Site you propose within 30 days after we receive from you a complete site report and any other materials we request. If you have not heard from us within such 30-day period, the Site is deemed disapproved. No Site will be deemed approved by us until we provide to you Exhibit "C" with that Site designated in it and Exhibit "C" is signed by both you and us. You may not commence operations at any Site unless and until we have approved the Site.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees must secure prior written consent from Petro Franchise Systems LLC to operate a Petro Center. The franchisee must locate a site that Petro Franchise Systems LLC has approved in its sole judgment. If a site has been agreed upon by both parties as of the Agreement Date, it will be designated on Exhibit "C". Otherwise, the site will be designated on Exhibit "C" upon approval. The site must meet Petro Stopping Center's criteria for location, which may include demographic characteristics, traffic patterns, parking, competition, proximity to other businesses and Petro Stopping Centers, commercial characteristics, and the size, appearance, and physical characteristics of the proposed site.
For each site selection visit requested to obtain approval, the franchisee must reimburse Petro Stopping Center for reasonable travel, hotel, and meal expenses. These criteria and their evaluation may change periodically and from location to location. If the franchisee and Petro Stopping Center cannot agree on a location, or if the franchisee has not obtained a fee interest in or a fully signed lease agreement for the site within 90 days of the Agreement Date, Petro Stopping Center may terminate the agreement.
Before entering into any lease for a site, the franchisee and the lessor must sign Petro Stopping Center's then-current form of Lease Assignment, which is attached as Exhibit "D". Petro Stopping Center will approve or disapprove a proposed site within 30 days after receiving a complete site report and any other requested materials. If the franchisee does not hear back within this 30-day period, the site is deemed disapproved. No site will be considered approved until Petro Stopping Center provides Exhibit "C" with the designated site, signed by both parties. Operations cannot commence at any site until Petro Stopping Center has approved it.
This means a Petro Stopping Center franchisee cannot operate from a location that has not been formally approved by Petro Franchise Systems LLC. This process involves meeting specific criteria, potential expenses for site visits, and adherence to a strict approval timeline. Failure to comply with these site selection and approval procedures could lead to termination of the franchise agreement.