What happens if the Petro Stopping Center franchisee defaults under the Franchise Agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
In any case of default by the Franchisee under the terms of the Lease or under the Franchise Agreement, the Franchisor shall be entitled to exercise any one or more of the following remedies in its sole discretion:
(a) to take possession of the Site, or any part thereof, personally, or by its agents or attorneys;
(b) to, in its discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Site, together with all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;
(c) to exclude the Franchisee, its agents or employees from the Site;
(d) as attorney-in-fact for the Franchisee, or in its own name, and under the powers herein granted, to hold, operate, manage and control the Petro Center and conduct the business, if any, thereof, either personally or by its agents, with full power to use such measures, legally rectifiable, as in its discretion may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to the Franchisor to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
(e) to cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground which would entitle the Franchisor to cancel the same;
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, if a franchisee defaults under the terms of the lease or the Franchise Agreement, Petro Stopping Center has several remedies available. Petro Stopping Center can take possession of the site, either personally or through agents or attorneys. They can also enter and maintain possession of the site, including all furniture, fixtures, inventory, books, records, papers, and accounts. Petro Stopping Center can exclude the franchisee, its agents, or employees from the site.
Additionally, Petro Stopping Center, acting as the franchisee's attorney-in-fact, can operate and manage the Petro Center, taking necessary actions to cure the default. This includes actions of forcible entry or detainer and actions in distress of rent. Petro Stopping Center also has the power to cancel or terminate any unauthorized agreements or subleases entered into by the franchisee for any cause that would entitle Petro Stopping Center to cancel them.
These remedies provide Petro Stopping Center with significant control over the location and business operations in the event of a franchisee default, allowing them to protect their brand and maintain business continuity. A prospective franchisee should carefully consider these potential consequences and ensure they fully understand their obligations under both the Franchise Agreement and the lease to avoid default.