What happens if a Petro Stopping Center franchisee defaults on their lease?

According to the 2025 Petro Stopping Center Franchise Disclosure Document, if a franchisee fails to cure any default under their lease or loses the right to possession of the Petro Center or the site, Petro Stopping Center has grounds to terminate the franchise agreement.

Petro Stopping Center can terminate the agreement without providing an opportunity to cure the default if the default is non-curable. However, Petro Stopping Center may also terminate the agreement after notifying the franchisee of their intention to do so and providing 30 days to cure the default. Any default by the franchisee under the franchise agreement or any other agreement between Petro Stopping Center and the franchisee (or its affiliates) that is material enough to allow termination of any agreement will be considered a default of every agreement between the parties.

Upon termination of the franchise agreement, Petro Stopping Center has the option to purchase the Petro Stopping Center from the franchisee, including the real property or leasehold rights to the site, within 60 days of termination. The purchase price will be the fair market value of the Petro Center, excluding any goodwill associated with the franchise, trademarks, or participation in the Petro Stopping Center system. If Petro Stopping Center exercises its option to purchase the Petro Center, the franchisee must assign their leasehold interest in the site to Petro Stopping Center or enter into a sublease for the remainder of the lease term on the same terms as the prime lease, at no additional cost to Petro Stopping Center.

After termination or expiration of the agreement, the franchisee and their owners are subject to non-compete covenants for two years. They cannot have any interest in a competitive business operating within the protected area, within 75 miles of the protected area or site, within 75 miles of any other Petro Stopping Center, or anywhere in the United States or Canada in connection with a regional or national chain operating a competitive business. They also cannot lease or permit the site to be used by a regional or national chain operating a competitive business.