What are 'Proprietary Supplies' for a Petro Stopping Center franchise, and where must they be purchased from?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
r Operating Assets that we approve for Petro Centers.
Principal Owner An Owner which:
- (i) is a general partner in you; or
- (ii) has a direct or indirect equity interest in you of five percent (5%) or more (regardless of whether such owner is entitled to vote therein); or
- (iii) is designated as a Principal Owner in Exhibit "A" of this Agreement.
Products The Proprietary Supplies and other products, supplies, materials and equipment that we designate or approve for use and sale by your Petro Center.
Proprietary Supplies The items you must purchase from our Approved Suppliers and use in operating your Petro Center, which are proprietary to the Petro System or its Affiliates, incorporate our trade secrets, bear any of the Marks including employee clothing, uniforms, stationary, forms, Products and advertising materials, or are otherwise designated as such by us fr
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, Proprietary Supplies are items franchisees must purchase from the franchisor's Approved Suppliers. These supplies are proprietary to the Petro System or its Affiliates, incorporate the franchisor's trade secrets, or bear any of the Marks, including employee clothing, uniforms, stationary, forms, Products, and advertising materials. The franchisor can also designate other items as Proprietary Supplies from time to time.
Petro Stopping Center franchisees are required to purchase these Proprietary Supplies from Approved Suppliers. The franchisor may designate themselves or an Affiliate as the sole Approved Supplier of Proprietary Supplies. In that case, they have no obligation to evaluate or consider alternative suppliers.
This arrangement allows Petro Stopping Center to maintain quality control and brand consistency across all franchise locations. However, it also limits the franchisee's ability to negotiate prices or source supplies from other vendors, potentially impacting their operating costs and profitability. Prospective franchisees should carefully consider the potential costs and benefits of this arrangement and inquire about the process for becoming an approved supplier if they wish to have alternative sources considered.