What is the New Owner's obligation regarding the Lease and Conditional Assignment for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
New Owner hereby acknowledges and agrees: (i) that the Lease and Conditional Assignment remain in full force and effect; (ii) that the Lease has not been modified or amended
in any manner, being assigned in the same form of the Lease as described above; and (iii) that there are no defaults under the Lease. New Owner further agrees to be bound by the terms of the Conditional Assignment as if it was the Old Owner, and specifically acknowledges and agrees that it's respective rights with respect to the Site and Lease are subject to the ROFR and Lease Assumption Rights provided to Franchisor under the Conditional Assignment.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center FDD, a "New Owner" (successor landlord) acknowledges and agrees to several key points regarding the Lease and Conditional Assignment. The New Owner confirms that the Lease and Conditional Assignment remain fully effective and have not been modified or amended. This ensures the original terms of the lease are upheld even with the change in ownership. The New Owner also confirms that there are no existing defaults under the Lease, providing assurance that the tenant (Franchisee) is in good standing.
Furthermore, the New Owner agrees to be bound by the terms of the Conditional Assignment as if they were the "Old Owner" (previous landlord). This is a critical aspect, as it ensures continuity in the obligations and rights related to the property. Specifically, the New Owner acknowledges that their rights concerning the Site and Lease are subject to Petro Stopping Center's right of first refusal (ROFR) and Lease Assumption Rights, as outlined in the Conditional Assignment.
In practical terms, this means that if the Petro Stopping Center franchisee decides to sell their business or if certain conditions are met, Petro Stopping Center has the first option to either purchase the business or assume the lease. The New Owner cannot bypass these rights. This arrangement protects Petro Stopping Center's interests and ensures they maintain control over the location and operation of the franchise. The New Owner's acknowledgement and agreement to these terms are essential for maintaining the integrity of the franchise agreement and the associated property lease.