What payment terms apply to materially all of Petro Stopping Center's trade payables?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ments as we reasonably may request on behalf of such third party in connection with such license or sublicense. You will also be required to install and maintain certain security software on your Computer Systems (such as virus protection, firewalls, and malware blockers) as designated by us from time to time. You must be Payment Card Industry (PCI) Data Security Standard (DSS) compliant and remain compliant at all times. You must submit the necessary documentation at least every calendar year to prove your compliance per our Petro System Standards. We have the right to request proof of your PCI DSS compliance at any time.
- 7.10 Trade Accounts and Taxes. You must: (a) maintain your trade accounts in a current status and seek to resolve any disputes with trade suppliers including Approved Suppliers and Preferred Vendors promptly; and (b) timely pay all Taxes incurred in connection with your Petro Center's operations. Your failure to do so is a material breach of this Agreement. If you fail to maintain your trade accounts in a current status, timely pay Taxes or any other amounts owing to any third parties or perform any non-monetary obligations to third parties, we may, but are not required to, pay any and all such amounts and perform such obligations on your behalf. If we elect to do so, then you must reimburse us for such amounts. You agree to repay us immediately upon receipt of our invoice. We may also set-off the amount of any such reimbursement obligations against all amounts which we may owe you.
- 7.11 Managing Owner. You must designate an individual to serve as the managing Owner of the Petro Center (the "Managing Owner"). The Managing Owner must devote full time and best efforts to the supervision and conduct of the development and operation of the Petro Center. The Managing Owner shall assume responsibility for the Petro Center's management, operation, and Personnel. The Managing Owner shall have authority over all business decisions related to your Petro Center and must have the power to bind you in all dealings with us.
The Managing Owner must meet the following qualifications:
- (a) The Managing Owner must own at least a 20% equity interest in you (if you are an entity) or in the Petro Center if you are individuals;
- (b) The Managing Owner must be a person approved by us who completes our initial training requirementsregarding the Petro System and Petro System Standards and who must participate in and successfully complete all additional training regarding the Petro System and Petro System Standards as we may reasonably designate; and
If, at any time for any reason, the Managing Owner no longer qualifies to act as such, you must promptly designate another Managing Owner subject to the same qualifications listed above. Any sale or transfer of any portion of the Managing Owner's interest in you that would reduce the Managing Owner's equity interest or voting rights in you to less than 20% of the total is deemed a "transfer" of an interest and is subject to the terms and conditions of Section 16 hereof;
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees must maintain their trade accounts in a current status and resolve disputes with trade suppliers, including Approved Suppliers and Preferred Vendors, promptly. Franchisees are also required to pay all taxes incurred in connection with their Petro Center's operations in a timely manner. Failure to comply with these requirements constitutes a material breach of the franchise agreement.
If a Petro Stopping Center franchisee fails to maintain their trade accounts, pay taxes, or fulfill other obligations to third parties, Petro Stopping Center has the option, but not the obligation, to step in and pay those amounts or perform those obligations on the franchisee's behalf. If Petro Stopping Center chooses to do so, the franchisee must reimburse Petro Stopping Center immediately upon receiving an invoice. Petro Stopping Center also has the right to offset any reimbursement obligations against any amounts it may owe to the franchisee.
Furthermore, if a franchisee desires to purchase products or services from Petro Stopping Center on credit, they must establish a line of credit with Petro Stopping Center's credit department. Petro Stopping Center has the sole discretion to establish and modify the terms of credit offered to the franchisee. As a condition of providing credit, Petro Stopping Center may require monthly financial statements and additional security from the franchisee, and may also charge a fee for the credit. Petro Stopping Center can withhold products and services, demand cash payment, demand advance payment, or terminate the franchise agreement if the franchisee fails to meet the payment terms or if their financial condition deteriorates. Petro Stopping Center may also shorten or change existing payment terms to ensure payments are received before the agreement expires or terminates.
Petro Stopping Center does not agree to accept any payments after they are due nor commit to extend credit to, or otherwise finance your operation of, the Petro Center. All amounts which a franchisee owes Petro Stopping Center will bear interest automatically and without notice from Petro Stopping Center, after their due date at the annual rate of 18% or the highest contract rate of interest permitted by law, whichever is less.