When does the non-competition covenant for transferring owners of a Petro Stopping Center franchise become effective?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| other representative may appoint a manager to | ||
| operate the Petro Center if the Petro Center is not | ||
| being managed by a trained manager. Pending | ||
| appointment, we may appoint a manager and | ||
| charge a reasonable management fee. | ||
| q. Non-competition covenants during the term of the franchise | Section 12 | Non-Compete Covenant During the term of the Franchise Agreement and, for a period of 2 years thereafter, neither you nor any of your Owners (nor any of your or your Owners' spouses or children) will have any direct or indirect interest as a disclosed or beneficial Owner, investor, partner, director, officer, employee, franchisee, licensee, consultant, operator, licensor, manager, representative, landlord, sublandlord, tenant or agent or in any other capacity in any Competitive Business operating: within the Protected Area (if any) and (A) including at the Site; (B) within 75 miles of the Protected Area (if any), and if not, within 75 miles of the Site, and including at the Site; (C) within 75 miles of any other Petro Center (franchised or otherwise) in operation or which is under construction and granted the right to operate in such area; or (D) anywhere in the United States or Canada in connection with a regional or national chain operating a Competitive Business (including but not limited to Pilot, Flying J, Bosselman, Love's, or Sapp Bros.) Covenant Not to Solicit During the term of the Franchise Agreement and, for a period of 2 years thereafter, neither you nor any of your Owners will entice or induce or in any manner influence any Person, who is in our or our Affiliates' employ at a management level, to leave such employ or discontinue such service. Covenant Not to Divert Business During the term of the Franchise Agreement, neither you nor any of your Owners (nor any of your or your Owners' spouses or children) will divert or attempt to divert any business or any customer of a Petro Center to any Competitive |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 66–78)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the non-competition covenant during the term of the franchise agreement is detailed in Section 12. This covenant restricts the franchisee and their owners from engaging in any Competitive Business during the term of the Franchise Agreement and for two years after.
Specifically, neither the franchisee nor their owners (including spouses or children) can have any direct or indirect interest in a Competitive Business within the Protected Area (if any) or within 75 miles of the Protected Area or the Site. This restriction also applies within 75 miles of any other Petro Stopping Center. The non-compete extends to any regional or national chain operating a Competitive Business anywhere in the United States or Canada.
Additionally, during the term of the Franchise Agreement and for two years thereafter, franchisees and their owners are prohibited from soliciting or influencing any management-level employees of Petro Stopping Center or its affiliates to leave their employment. They are also barred from diverting business or customers of a Petro Stopping Center to any Competitive Business. These covenants may be subject to applicable state laws.