Does Petro Stopping Center negotiate volume purchasing arrangements with Approved Suppliers?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
) who demonstrate to our continuing satisfaction the ability to meet the Petro System Standards; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved in writing by us and not thereafter disapproved ("Approved Suppliers").
Certain items are proprietary to the Petro System or its Affiliates, incorporate our trade secrets or bear the Marks, including employee clothing, uniforms, stationary, forms, Products and advertising materials or are otherwise designated as such by us ("Proprietary Supplies"). We reserve the right to require you to purchase Products, Proprietary Supplies, and/or Motor Fuel from us, our Affiliates, or Approved Suppliers. We currently specify certain brands of product (such as tires, motor oil, and coffee) that you must offer at your Petro Center. Although we have negotiated volume purchasing arrangements with Approved Suppliers of these products, we do not presently require you to purchase these branded products from a particular source.
We do, however, have the absolute right to limit the suppliers with whom you deal. We may restrict your sources of materials, fixtures, equipment, furniture, signs, products, goods, and services now and in the future, in order to protect our trade secrets, assure quality, assure a reliable supply of products and services that meet our Petro System Standards, achieve better terms and delivery service, control usage of the Marks, and monitor the manufacture, packaging, processing and sale of these items. If we, at our option, limit the sources of certain materials, fixtures, equipment, furniture, signs, products, goods, and services to us, or to our Affiliates and/or specified exclusive or approved sources, then you must acquire these only from these approved sources at prices we or they decide to charge. Specifically, we reserve the right to designate ourself or an Affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel and we have no obligation to evaluate or consider alternative suppliers of Proprietary Supplies or Motor Fuel. Any purchases you make from us or from our Affiliates, whether required or voluntary, may be at prices exceeding our cost.
If you desire to purchase or lease any unapproved product, supplies, service or equipment or purchase or lease any approved product, supplies, service or equipment from an unapproved supplier, you must notify us in writing and request approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Stopping Center negotiates volume purchasing arrangements with Approved Suppliers. The FDD states that while Petro Stopping Center specifies certain brands of products that franchisees must offer, such as tires, motor oil, and coffee, franchisees are not presently required to purchase these branded products from a particular source.
Petro Stopping Center, or its Affiliates, may also develop programs where they, franchisees, or others receive negotiated benefits from Approved Suppliers. Franchisees must adhere to all policies and procedures for participation in these programs, which may include displaying approved signs and logos at their Petro Center. Petro Stopping Center or its Approved Suppliers may also require franchisees to enter into agreements related to their participation in these programs.
Furthermore, Petro Stopping Center and its Affiliates are entitled to all rebates, bonuses, and promotional benefits associated with these volume purchasing programs. Petro Stopping Center may also derive revenue from franchisee purchases from Approved Suppliers and may receive payments or other consideration from Approved Suppliers related to their dealings with franchisees. Petro Stopping Center has the right to concentrate purchases with specific Approved Suppliers to obtain lower prices, advertising support, or services for the benefit of themselves or their Affiliates.