What happens to the Petro Stopping Center franchise if the franchisee chooses not to renew the agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| n. Petro Franchise's right of first refusal to acquire your business | Section 16.7 | (m) if the transfer relates solely to conveying the real estate underlying the Site to a third party lessor, the lessor must execute a Lease Assignment and the parties must otherwise comply with the lease requirements under the Franchise Agreement; (n) you and your transferring Owners (and your and your Owners' spouses) must sign a non-competition covenant in favor of us agreeing to be bound, commencing on the effective date of the transfer, by the restrictions contained in this Agreement; and (o) you and your transferring Owners must agree that you and they will not directly or indirectly at any time or in any manner (except with respect to other Petro Centers you own and operate) identify yourself or themselves or any business as a current or former Petro Center, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark, or other indicia of a Petro Center in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a connection or association with us. Depending on the nature of the transfer, we may choose, in our sole discretion, to waive certain of the foregoing conditions to the extent we deem them inapplicable to the transfer. If you receive an offer to purchase any interest in the Franchise Agreement, the Site and/or the Petro Center (including the real property related to the Site or the Petro Center, whether a leasehold, fee interest or otherwise) or an ownership interest in you, you must offer those terms to Petro Franchise; Petro Franchise then has 30 days from receipt of the written offer to meet such offer, which right applies during the term of your Franchise Agreement and for the 5 year period following expiration or termination. |
| o. Petro Franchise's option to purchase your business | Section 19.5 | Petro Franchise has an option to purchase your Petro Center, the Operating Assets, and your interest in the Site. Petro Franchise may exercise its option to purchase if your Franchise Agreement is terminated or expires. |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 66–78)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, if a franchisee's Franchise Agreement is terminated or expires, Petro Franchise has the option to purchase the Petro Center, the Operating Assets, and the franchisee's interest in the Site. This means that upon non-renewal or termination, Petro Stopping Center has the right to buy the business from the franchisee.
Additionally, if the franchisee receives an offer to purchase any interest in the Franchise Agreement, the Site, and/or the Petro Center, they must first offer those terms to Petro Franchise. Petro Franchise then has 30 days from receipt of the written offer to meet such offer. This right applies during the term of the Franchise Agreement and for the 5-year period following expiration or termination. This gives Petro Stopping Center the first opportunity to buy the franchise back, even if the franchisee has another potential buyer.
Furthermore, in the event of a transfer of ownership, the franchisee and their transferring owners must agree not to identify themselves or any business as a current or former Petro Center, or use any marks or indicia of a Petro Center. This restriction applies at any time and in any manner, except with respect to other Petro Centers the franchisee may own and operate. This prevents the franchisee from leveraging the Petro Stopping Center brand recognition after leaving the system.