What are the key requirements of Petro Stopping Center's credit policy?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
9.14 Credit. If you desire to purchase Products or Services from us on credit, you must establish a line of credit with our, or our Affiliate's, credit department. We, in our sole discretion, shall have the right to establish (and modify or change, from time to time) the terms of credit which we offer to you. As a condition to supplying Products or Services to you on credit, we will require that you provide us with certain financial statements on a monthly basis, and we may require additional security from you and/or charge you a fee for such credit. If you fail to fulfill the terms of payment or if your financial condition deteriorates, as determined in our sole discretion, we may, without prejudice to any other lawful remedy, withhold Products and Services until payment is made, demand cash payment, demand advance payment or terminate this Agreement. We may apply any payment made by you or on your behalf to any indebtedness owed to us. No payment made to us by check or other instrument shall contain a restrictive endorsement of any kind. A restrictive endorsement shall have no legal effect, even if the instrument restrictively endorsed is processed for payment and we retain the proceeds. Among other things, we may shorten or change then-existing payment terms for your purchases of Products or Services in order to ensure that such payments are received prior to the expiration or termination of this Agreement.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees who wish to purchase products or services on credit must establish a line of credit with Petro Stopping Center or its affiliate's credit department. The franchisor has the sole discretion to establish, modify, or change the terms of credit offered to the franchisee. As a condition of providing credit, Petro Stopping Center will require franchisees to provide monthly financial statements and may also require additional security or charge a fee for the credit.
If a Petro Stopping Center franchisee fails to meet the payment terms or if their financial condition deteriorates, as determined solely by the franchisor, Petro Stopping Center can withhold products and services until payment is made, demand cash payment, demand advance payment, or terminate the franchise agreement. Petro Stopping Center can apply any payment made by the franchisee to any outstanding debt owed to them.
The Petro Stopping Center agreement also specifies that payments made by check or other instruments cannot contain restrictive endorsements. Any such endorsement will have no legal effect, even if the instrument is processed and the proceeds are retained. Petro Stopping Center may also shorten or change existing payment terms to ensure payments are received before the franchise agreement expires or is terminated.