What is the 'Property' known as in the Subordination Agreement for Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS MEMORANDUM (this "Mem | orandum") is made on, between |
|---|---|
| (the "Owr | ner"), and PETRO FRANCHISE SYSTEMS LLC (the |
| "Holder"). | |
| PROPERTY: | See Exhibit A attached hereto and made a part hereof and known as |
| HOLDERS' RIGHTS: | Under the terms of that certain Franchise Agreement, as amended (the "Franchise Agreement"), Holder was granted a right of first refusal to purchase certain assets, including the Property pursuant to Section 16.8 of the Franchise Agreement and a right to purchase certain assets, including the Property pursuant to Section 19.5 of the Franchise Agreement. |
| FRANCHISE AGREEMENT DATE: | |
| TERM OF FRANCHISE AGREEMENT: | Ten (10) years plus two (2) five (5) year renewal options. |
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the term 'Property' in the context of the Memorandum is further defined by reference to Exhibit A. Specifically, Exhibit A, which is attached to and made part of the Memorandum, provides details that further clarify what constitutes the 'Property.'
This definition is relevant because the Memorandum outlines the rights of Petro Franchise Systems LLC ('Holder') concerning the 'Property.' These rights include a right of first refusal to purchase certain assets, including the 'Property,' as per Section 16.8 of the Franchise Agreement, and a right to purchase certain assets, including the 'Property,' as per Section 19.5 of the Franchise Agreement.
For a prospective franchisee, understanding the precise definition of 'Property' is crucial. It clarifies what assets are subject to Petro Stopping Center's rights of first refusal and purchase, which can impact the franchisee's ability to sell or transfer assets in the future. Therefore, reviewing Exhibit A is essential to fully understand the scope of these rights and obligations.