What are 'Preferred Vendor Programs' for Petro Stopping Center franchisees?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ce or equipment and to revoke our approval upon the supplier's failure to continue to meet any of our then-existing supplier, product, equipment or service criteria, or as otherwise reasonably determined by us. We and our Affiliates may negotiate group or volume purchasing arrangements with Approved Suppliers. We and our Affiliates will be entitled to all rebates, bonuses and promotional benefits associated with those programs. We reserve the right to use any of our Affiliates' resources, including programs, services, and personnel, that we deem appropriate in our sole discretion.
7.7 Preferred Vendor Programs. In addition to our approval of Approved Suppliers, we may develop certain programs and terms under which we, our Affiliates, certain franchisees or others receive certain negotiated benefits or terms from Approved Suppliers ("Preferred Vendor Programs"). You must follow all of our policies and procedures for participation in or termination of Preferred Vendor Programs ("Program Rules"). We can refuse or terminate your participation in Preferred Vendor Programs without terminating this Agreement. Our Program Rules may include requirements that you must agree to only place or display at the Petro Center (interior and exterior) such signs, emblems, lettering, logos and display materials that we periodically approve in connection with Preferred Vendor Programs. We may require, and certain Approved Suppliers we designate as Preferred Vendors may require, that you agree to enter into certain agreements with them (subject to our approval) in connection with our designation of them as Preferred Vendors or your participation in the preferred vendor program ("Preferred Vendor Agreements"). We may require that we be a party to such Preferred Vendor Agreements with Preferred Vendors.
7.8 Payments or Benefits to Us.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Preferred Vendor Programs are arrangements where Petro Stopping Center, its affiliates, franchisees, or others receive negotiated benefits or terms from approved suppliers. Petro Stopping Center may develop these programs and set the terms.
As a franchisee, you must adhere to Petro Stopping Center's policies and procedures for participating in or ending involvement in these programs, referred to as 'Program Rules'. Petro Stopping Center retains the right to refuse or terminate a franchisee's participation in these programs without ending the franchise agreement itself. These rules may dictate the signs, emblems, logos, and display materials allowed at the Petro Stopping Center, both inside and outside.
Petro Stopping Center may require franchisees to enter into agreements with designated 'Preferred Vendors,' subject to Petro Stopping Center's approval. Petro Stopping Center may also require that it be a party to these agreements. The FDD also states that Petro Stopping Center receives compensation from franchisee purchases of proprietary supplies, participation in preferred vendor programs, or purchases from approved suppliers. This compensation is considered fair for Petro Stopping Center's efforts in evaluating and monitoring vendors and administering the programs. Petro Stopping Center and its affiliates may retain all revenue received from approved suppliers or preferred vendors without restriction, unless the supplier or vendor requires otherwise.
In essence, Petro Stopping Center's Preferred Vendor Programs are designed to leverage the collective buying power of the franchise system, but they also give Petro Stopping Center significant control over sourcing and the ability to generate revenue from vendor relationships. Franchisees must comply with the program rules and may be required to use specific vendors and enter into agreements dictated by Petro Stopping Center.