Must the Managing Owner of a Petro Stopping Center be approved by Petro Franchise?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Materials.**
You must provide us with prior notice before publicly listing or marketing for sale any interest in the Petro Center, the Site, this Agreement, the Operating Assets or you. If you fail to provide us with such prior notice, you must pay us a non-compliance fee equaling Twenty Five Thousand Dollars ($25,000). You must further provide us with copies of all proposed marketing materials (in whatever form they may be) which include the Marks at least ten (10) business days prior to disseminating such materials. We reserve the right, in our reasonable discretion, to require you to remove and or modify: (a) the Marks; or (b) references to us or our Affiliates in such marketing materials.
OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You must designate an individual to serve as the managing Owner of your Petro Center (the "Managing Owner"). The Managing Owner must have a 20% equity interest in you (if you are an entity) or the Petro Center (if you are individuals), be approved by us, and complete all of our training requirements regarding the Petro System and Petro System Standards. The Managing Owner must devote full time and best efforts to the management and supervision of your employees and the Petro Center. The Managing Owner must have the power to bind you in all dealings with us. If you or your affiliates are developing and operating multiple Petro Centers, you need designate only one Managing Owner for your or your affiliates' operation, not one for each Petro Center.
You must also have managers, as specified in the Manuals, who directly supervise and control the Petro Center on a day-to-day basis. You must keep Petro Franchise informed of the identities of your manager(s) within seven days of their becoming manager(s). Your managers need not have any equity in the franchisee. The managers and their replacements must successfully and promptly complete all of our training programs.
If you are an entity, your Principal Owners (defined as a general partner or any individual with a 5% or greater direct or indirect interest in you) must execute a Guaranty (attached as Exhibit B to the Franchise Agreement), guaranteeing your obligations under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 66)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the Managing Owner of a Petro Stopping Center must be approved by Petro Franchise. The Managing Owner is the individual designated to oversee the Petro Center's operations.
To qualify as a Managing Owner, the individual must have at least a 20% equity interest in the franchisee entity or the Petro Center itself if the franchisee is an individual. Additionally, the Managing Owner must complete Petro Stopping Center's initial training program related to the Petro System and Petro System Standards. They must also participate in and successfully complete any additional training that Petro Stopping Center reasonably requires.
If a Managing Owner no longer meets the qualifications, the franchisee must promptly designate a replacement who meets the same requirements. Furthermore, any transfer of the Managing Owner's interest that reduces their equity below 20% is considered a transfer of interest and is subject to the conditions outlined in Section 16 of the Franchise Agreement. Failing to comply with these terms constitutes a default under the agreement. If a franchisee or its affiliates operate multiple Petro Centers, they only need to designate one Managing Owner for all locations.