What obligations does the franchisee have at closing regarding the transfer of assets for the Petro Stopping Center franchise?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Closing.
At closing you agree to deliver such instruments we reasonably request, including those documents sufficient to transfer to us:
(i) good and valid title to the Operating Assets purchased, free and clear of all liens and encumbrances (other than liens and security interests acceptable to us), with all sales and other transfer taxes paid by you; and
(ii) all licenses and permits of the Petro Center which may be assigned or transferred; and
(iii) the fee or leasehold interest and improvements at the Site, free and clear of all encumbrances except those we agree to assume.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, at the time of closing, the franchisee must deliver instruments reasonably requested by Petro Stopping Center to transfer specific assets. These include providing good and valid title to the operating assets being purchased, ensuring they are free of liens and encumbrances (unless otherwise acceptable to Petro Stopping Center), and paying all sales and transfer taxes.
Additionally, the franchisee is responsible for transferring all assignable or transferable licenses and permits associated with the Petro Stopping Center. The franchisee must also transfer the fee or leasehold interest and any improvements made to the site, ensuring they are free and clear of all encumbrances, except those that Petro Stopping Center agrees to assume.
These obligations ensure that Petro Stopping Center receives clear title and control over the assets and property necessary to continue operating the franchise location. The closing must occur no later than thirty (30) days following the expiration of the Due Diligence Period, with the purchase price paid in cash at that time. Franchisees should be prepared to meet these requirements to facilitate a smooth transfer of ownership.