factual

If a Petro Stopping Center franchisee fails to cure a default on a loan, what right does Petro Stopping Center have?

Petro_Stopping_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (i) to take possession of the Site or other Collateral or any part thereof, personally, or by our agents, employees or attorneys;

  • (ii) to, in our discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Petro Center, together with the Collateral, including all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;

  • (iii) to exclude you and your Personnel from the Site or other Collateral;

  • (iv) as attorney-in-fact for you, or in our 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, granting full power and authority to us to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;

  • (v) to cancel or terminate any unauthorized agreements or subleases entered into by you, for any cause or ground which would entitle us to cancel the same;

  • (vi) to disaffirm any unauthorized agreement, sublease or subordinated lien, to make all necessary or proper repairs, decorating, renewals,

  • replacements, alterations, additions, betterments and improvements to the Site that may seem judicious, in our sole judgment;

  • (vii) to insure and reinsure the same for all risks incidental to our possession, operation and management thereof; and/or

  • (viii) notwithstanding any provision of this Agreement, to declare all of your rights, but not obligations under this Agreement, to be immediately terminated as of the date of your default under the Lease, the Lease Assignment or the Loan Documents.

Source: Item 14 — Other investments (FDD pages 131–208)

What This Means (2025 FDD)

According to Petro Stopping Center's 2025 Franchise Disclosure Document, if a franchisee defaults on a loan and fails to correct it, Petro Stopping Center has several rights. These include taking possession of the site or collateral, either personally or through agents, employees, or attorneys. Petro Stopping Center can also enter and maintain possession of the Petro Center, including all furniture, fixtures, inventory, books, records, papers, and accounts.

Furthermore, Petro Stopping Center can exclude the franchisee and their personnel from the site or collateral. Acting as the franchisee's attorney-in-fact, Petro Stopping Center can operate and manage the Petro Center to cure the default, using any legally permissible measures. This includes actions of forcible entry or detainer and actions in distress of rent. Petro Stopping Center also has the power to cancel unauthorized agreements or subleases made by the franchisee.

Additionally, Petro Stopping Center can disaffirm unauthorized agreements, subleases, or subordinated liens. They can make necessary repairs, decorations, renewals, replacements, alterations, additions, betterments, and improvements to the site. Petro Stopping Center can also insure and reinsure the property for risks related to their possession, operation, and management.

Finally, Petro Stopping Center can declare all of the franchisee's rights under the agreement to be immediately terminated as of the date of the loan default. This comprehensive set of rights allows Petro Stopping Center to protect its interests and maintain control over the operation in the event of a franchisee's loan default.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.