What liens are permitted without the Franchisor's written consent for the Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall not permit the Lease to become subordinate to any lien without first obtaining Franchisor's written consent, other than the lien created by this Assignment, the Franchise Agreement, the Lessor's lien under the Lease or state law, liens securing bank financing for the operations of Franchisee on the Site and the agreements and other instruments referenced herein.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, a franchisee does not need the franchisor's written consent to allow the lease to become subordinate to certain liens.
Specifically, the franchisee can permit the lease to be subordinate to the lien created by the assignment, the Franchise Agreement, the Lessor's lien under the Lease or state law, and liens securing bank financing for the operations of the franchisee on the site. This means a franchisee can obtain financing from a bank for their Petro Stopping Center's operations and the bank can place a lien on the lease without needing specific approval from Petro Stopping Center.
This provision provides the franchisee with some flexibility in managing their financing and lease obligations. However, it's important to note that any other subordination of the lease to a lien would require the franchisor's written consent, ensuring that Petro Stopping Center maintains control over significant changes to the lease agreement.