What does the 'Franchisor Security Interest' apply to for Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) The Franchisee hereby grants to the Franchisor a security interest in and to the Lease, all of the furniture, fixtures, inventory and supplies located in the Site and the franchise relating to the Petro Center, and all of the Franchisee's rights, title and interest in and to the Lease as collateral for the payment of any obligation, liability or other amount owed by the Franchisee or its Affiliates to the Lessor arising under the Lease and for any default or breach of any of the terms and provisions of the Lease, and for any default or breach of any of the terms and provisions of the Franchise Agreement.
This Assignment shall constitute a lien on the interest of the Franchisee in and to the Lease until satisfaction in full of all amounts owed by the Franchisee to the Franchisor.
Franchisee agrees to execute any and all Uniform Commercial Code financing statements and all other documents and instruments deemed necessary by Franchisor to perfect or document the interests and assignments granted herein.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the franchisee grants the franchisor a security interest in several assets. This security interest acts as collateral for the payment of any obligation, liability, or other amount the franchisee owes to the lessor under the lease. It also covers any default or breach of the terms and provisions of the lease or the Franchise Agreement.
The specific assets subject to this security interest include the lease itself, all furniture, fixtures, inventory, and supplies located at the site, and the franchise relating to the Petro Stopping Center. This means that if a franchisee fails to meet their financial obligations or violates the terms of the lease or Franchise Agreement, Petro Stopping Center has a legal claim on these assets.
Furthermore, the assignment of the security interest constitutes a lien on the franchisee's interest in the lease until all amounts owed to the franchisor are fully paid. The franchisee also agrees to execute any Uniform Commercial Code financing statements and other documents necessary for Petro Stopping Center to perfect or document these security interests and assignments. This ensures that Petro Stopping Center's claim on the specified assets is legally protected and enforceable.