What is the 'Loan' that the franchisee obtains or seeks to obtain from the Lender for Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to Lender commencing any remedy under the Loan Documents, Lender shall provide to Franchisor written notice of the default which would permit the Lender to commence such remedy, whether or not Lender is obligated to give notice thereof to Franchisee (each, a "Loan Default Notice") and shall permit Franchisor an opportunity, to be exercised in Franchisor's sole discretion, to cure such default in accordance with the provisions of this Section 3.
If the default is: (a) a payment default, or (b) any other monetary default, Franchisor shall have until seven (7) calendar days after the later of: (i) the receipt by Franchisor of the Loan Default Notice, and (ii) the expiration of Franchisee's cure provision, if any, (in either event, an "Extended Monetary Cure Period") to cure such monetary default.
In the event Franchisor elects to cure any such monetary default: (x) Franchisee shall defend and hold harmless Lender for all costs, expenses, losses, liabilities, obligations, damages, penalties, costs, and disbursements imposed on or incurred by or asserted against Lender due to or arising from such Extended Monetary Cure Period, and (y) Franchisee shall pay all default interest and late charges applicable to such monetary default.
If the default is of a non-monetary nature, Franchisor shall have the same period of time as the Franchisee has under the Loan Documents to cure such non-monetary default plus an additional fifteen (15) calendar days (an "Extended
Non-Monetary Cure Period").
Franchisee shall defend and hold harmless Lender for all costs, expenses, losses, liabilities, obligations, damages, penalties, costs, and disbursements imposed on or incurred by or asserted against Lender due to or arising from such Extended Non-Monetary Cure Period.
If the default is of a nature that is not susceptible of cure (e.g., a bankruptcy of the Franchisee) as determined by Lender in good faith, Franchisor shall have no cure rights hereunder (although Lender shall still be required to provide the wri
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the 'Loan' for a Petro Stopping Center refers to the financing a franchisee obtains from a lender to operate their franchised business. Petro Stopping Center requires that before a lender can act on any remedies specified in the loan documents, the lender must first provide Petro Stopping Center with written notice of the default. This notice, called a Loan Default Notice, allows Petro Stopping Center the opportunity to address the default.
If the default involves payment issues or other monetary defaults, Petro Stopping Center has until seven calendar days after receiving the Loan Default Notice or the expiration of the franchisee's cure period, whichever is later, to resolve the monetary default. This period is termed an 'Extended Monetary Cure Period'. During this time, the franchisee is responsible for defending and protecting the lender against any costs or liabilities resulting from this extension, including covering all default interest and late charges.
For non-monetary defaults, Petro Stopping Center is granted the same cure period as the franchisee, plus an additional fifteen calendar days, referred to as an 'Extended Non-Monetary Cure Period.' Similar to monetary defaults, the franchisee must protect the lender from any costs or liabilities arising from this extended period. However, if the default cannot be cured, such as in the case of franchisee bankruptcy, Petro Stopping Center does not have cure rights, although the lender is still obligated to provide written notice.