What is the 'Franchisor Purchase Right' for Petro Stopping Center comprised of?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisor may elect not to close on the purchase and terminate the agreement of sale.
If Franchisor does not exercise its right of first refusal, Lessor or its owners may complete the sale to such offeror pursuant to the substantially material terms of such Offer, provided that, if the sale to such offeror is not completed within 120 days after delivery of such Offer to Franchisor, or if there is a material change in the terms of the sale (which Lessor agrees to promptly communicate to Franchisor), Franchisor will have an additional right of first refusal during the 30 day period following either the expiration of the 120 day period or notice to Franchisor of the material change(s) in the terms of the sale, either on the terms originally offered or the modified terms, at Franchisor's option.
6. Memorandum of Right of First Refusal. Lessor shall execute Franchisor's Memorandum of Right of First Refusal, attached hereto as Exhibit B (the "Memorandum of Rights"), shall cooperate with Franchisor in publicly filing the Memorandum of Rights in the applicable land records, and shall take such further steps as are reasonably requested by Franchisor in order to memorialize Franchisor's Right of First Refusal.
7. Construction and Development of Petro Center, if applicable.
- (a) Franchisee acknowledges and agrees that Franchisor may, in its sole discretion, provide Development Plans (as defined in the Franchise Agreement) and other information and guidance regarding Petro System Standards (as defined in the Franchise Agreement) (collectively, the "Petro Development Information") directly to Lessor in connection with Lessor's Development and Construction Work.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
Based on the 2025 Petro Stopping Center Franchise Disclosure Document, the franchisor has a right of first refusal if the Lessor or its owners decide to sell the property. If the franchisor chooses not to exercise this right, the Lessor can proceed with the sale to another party, provided the terms are substantially the same as those initially offered to Petro Stopping Center.
If the sale is not completed within 120 days of the initial offer to Petro Stopping Center, or if there are material changes to the terms of the sale, the franchisor has an additional 30-day period to exercise its right of first refusal. This allows Petro Stopping Center to either match the original terms or the modified terms, at its discretion.
To formalize this right, the Lessor must execute Petro Stopping Center's Memorandum of Right of First Refusal and cooperate with the franchisor in filing it in the applicable land records. This ensures that the franchisor's right is legally documented and publicly acknowledged. Franchisee acknowledges that Franchisor's Right of First Refusal and Right to Purchase, as set forth in the Franchise Agreement, shall survive any such transfer and shall continue to apply to the Site, and Franchisee shall promptly execute such documents as are reasonably necessary to confirm Franchisor's continuing Right of First Refusal and Right to Purchase the Site under the Franchise Agreement. At least thirty (30) days prior to any closing, Franchisee agrees to provide written notice to Franchisor of its intention to acquire the Site.