What happens if a Petro Stopping Center franchisee fails to obtain something?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| during the required hours; you purchase or lease | ||
| any product or service from an unapproved | ||
| supplier; you fail to obtain and maintain permits | ||
| and licenses required by applicable law; if you are | ||
| a business entity, failure to maintain active status | ||
| in your state of organization; you fail to timely | ||
| make required reports; you violate any other | ||
| provision of the Franchise Agreement; you fail to | ||
| maintain any standards or procedures contained | ||
| in the Manuals; your continued violation of any | ||
| law, | ||
| ordinance, | ||
| rule | ||
| or | ||
| regulation | ||
| of | ||
| a | ||
| governmental agency; or you fail to obtain any | ||
| approvals or consents required by the Franchise | ||
| Agreement. If you are in default under any other | ||
| agreement between with Petro Franchise, you | ||
| may be in default under the Franchise Agreement. | ||
| h. "Cause" defined (non-curable defaults) | Section 18.2 | The following events are non-curable defaults: you have made any material misrepresentation or omission in connection with your purchase of the Franchise; you fail to begin operating the Petro Center by the Opening Deadline; you fail to participate in or otherwise comply with a Core Program; you fail to successfully complete initial or any other training regarding the Petro System or Petro System Standards to our satisfaction; you abandon or fail to actively operate the Petro Center for 5 or more consecutive business days, unless the Petro Center has been closed for a purpose we have approved or because of casualty or government order or is requiring mechanical repair or remodeling approved by us; you surrender or transfer control of the operation of the Petro Center without our prior written consent; you are or have been convicted by a trial court of, or plead or have pleaded no contest, or guilty, to, a felony or other serious crime or offense; you engage in any dishonest or unethical conduct which may adversely affect the reputation of the Petro Center or other Petro Centers or the goodwill associated with the Marks; you understate Gross Sales by one percent or more, or our audits or investigations show that you understated Gross Sales by one percent or more two or more times during any 18 month period; you make an unauthorized assignment of the Franchise Agreement or of an ownership interest in you, the Petro Center or your Operating Assets; in the event of your or your Owner's death or disability the Franchise is not assigned as required; you lose the right to possession of the Petro Center or the Site; you make any unauthorized use or disclosure |
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, a franchisee's failure to obtain necessary permits, licenses, approvals, or consents can lead to significant repercussions. Specifically, failing to secure and maintain the permits and licenses required by law constitutes a violation of the Franchise Agreement. This failure is listed among other actions, such as purchasing from unapproved suppliers or failing to maintain required standards, that can trigger default under the agreement.
In the event of such a default, Petro Stopping Center has grounds to take action against the franchisee. The consequences can range from requiring the franchisee to rectify the issue to potentially terminating the franchise agreement. The severity of the repercussions often depends on the nature and impact of the failure, as well as the specific terms outlined in the franchise agreement.
Furthermore, the FDD specifies certain non-curable defaults, which are severe breaches of the agreement that cannot be remedied. While the provided excerpt does not explicitly state that failing to obtain permits or approvals falls into this non-curable category, it is essential for prospective franchisees to understand the potential ramifications of non-compliance. Franchisees should proactively ensure they meet all legal and contractual obligations to avoid jeopardizing their investment and the operation of their Petro Stopping Center.