For how long does the Guaranty last under the Petro Stopping Center franchise agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received BP Corporation North America Inc., an Indiana corporation located at 501 Westlake Park Boulevard, Houston, TX 77079, absolutely and unconditionally guarantees to assume the duties and obligations of Petro Franchise Systems LLC, a Delaware limited liability company located at 24601 Center Ridge Road, Westlake, Ohio 44145-5634 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 "Petro Stopping Centers" Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified, or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the Guaranty of Performance provided by BP Corporation North America Inc. ensures that BP Corporation will fulfill the obligations of Petro Franchise Systems LLC under the franchise agreement. This guarantee remains in effect until all obligations of Petro Franchise Systems LLC under its franchise registrations and the Franchise Agreement are completely satisfied. Alternatively, the guaranty lasts until the liability of Petro Franchise Systems LLC to its franchisees under the Franchise Agreement has been fully discharged, whichever event occurs first.
This means that BP Corporation's guarantee is comprehensive and long-lasting, designed to protect the franchisee. The guarantee is not discharged even if a franchisee has an outstanding claim against Petro Franchise Systems LLC, providing an additional layer of security for the franchisee's investment and operational interests. This ensures that franchisees can rely on the financial backing of BP Corporation should Petro Franchise Systems LLC fail to meet its obligations.
This type of guarantee is significant for prospective franchisees as it mitigates some of the risks associated with investing in a franchise. It assures franchisees that a financially stable entity, BP Corporation North America Inc., stands behind Petro Franchise Systems LLC, increasing the likelihood that the franchisor will meet its contractual obligations throughout the term of the franchise agreement. The guarantor does not waive receipt of notice of default on the part of Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.