What happens if an owner of a Petro Stopping Center is convicted of a felony?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if you or any of your owners are convicted of a felony or other serious crime. Specifically, Petro Stopping Center has the right to terminate the agreement if you (or any of your Owners) 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. This termination is effective immediately upon delivery of written notice and does not provide an opportunity to cure the default.

This clause is fairly standard in franchise agreements, as a felony conviction can significantly impact the reputation and operation of the franchise. The franchisor needs to protect the brand and the interests of other franchisees in the system. The inclusion of a 'no contest' or 'guilty' plea broadens the scope beyond just convictions, giving Petro Stopping Center more latitude in acting against owners involved in serious criminal matters.

For a prospective Petro Stopping Center franchisee, this means that maintaining a clean criminal record is not just a personal matter but a critical requirement for keeping the franchise agreement in good standing. It also extends to all owners, so any partner or investor must also meet this standard. This clause underscores the importance of due diligence not only in running the business but also in choosing business partners.