What non-competition covenant must the transferring Petro Stopping Center franchisee sign?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, a franchisee who is transferring their franchise, along with their owners and their spouses, must sign a non-competition covenant in favor of Petro Stopping Center. This covenant takes effect on the date of the transfer. By signing this, the franchisee agrees to be bound by the restrictions outlined in the franchise agreement.

Additionally, the transferring franchisee and their owners must agree that they will not, directly or indirectly, identify themselves or any business as a current or former Petro Stopping Center, or as one of its licensees or franchisees. This restriction applies at any time and in any manner, except with respect to other Petro Stopping Centers they own and operate. They are also prohibited from using any Mark, any colorable imitation of a Mark, or other indicia of a Petro Stopping Center for any purpose. Furthermore, they cannot utilize any trade name, trade or service mark, or other commercial symbol that suggests a connection or association with Petro Stopping Center.

This non-competition agreement ensures that the transferring franchisee does not leverage their past association with Petro Stopping Center to unfairly compete with the brand after the transfer. This protects Petro Stopping Center's brand reputation, customer goodwill, and market position. It is a standard practice in franchising to include such covenants to maintain brand consistency and prevent former franchisees from using proprietary knowledge to compete against the franchise system.

Prospective franchisees should carefully review the specific restrictions outlined in the franchise agreement to fully understand the scope and duration of the non-competition covenant. It is also advisable to seek legal counsel to assess the enforceability of these provisions in their specific jurisdiction.