How long after the termination or expiration of the agreement does Petro Stopping Center have to exercise its option to purchase my Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Exercise of Option. Upon our termination of this Agreement in accordance with its terms and conditions, or your termination of this Agreement without cause or the expiration of this Agreement, we have the option, exercisable by giving written notice to you within 60 days after the date of such termination, to purchase your Petro Center (including all or any portion of the real property related to the Petro Center) from you, including the ownership or leasehold rights to the Site. The date on which we notify you whether or not we are exercising our option is referred to in this Agreement as the "Notification Date". We have the unrestricted right to assign this option to purchase your Petro Center. We will be entitled to all customary warranties and representations in connection with our asset purchase, including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Stopping Center has 60 days to exercise its option to purchase your Petro Center after the termination or expiration of the franchise agreement. This option is exercisable by giving written notice to the franchisee within that 60-day period. The date on which Petro Stopping Center notifies the franchisee whether or not they are exercising their option is referred to as the "Notification Date".
This means that if Petro Stopping Center decides to purchase the Petro Center, they must inform the franchisee in writing within 60 days of the agreement's termination or expiration. This notification triggers further actions related to the purchase, such as determining the fair market value of the Petro Center and transferring ownership or leasehold rights.
It is important to note that Petro Stopping Center has the unrestricted right to assign this purchase option to another party. The purchase price will be the fair market value of the Petro Center, excluding any goodwill associated with the franchise, trademarks, or participation in the Petro Stopping Center system. This valuation will be consistent with reasonable depreciation of the Petro Center's equipment, signs, inventory, materials, and supplies, and the Petro Center will be valued as an independent business.