How is the 'Protected Area' for a Petro Stopping Center franchise defined, and where can I find its specific details?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Protected Area.
So long as you are in compliance with this Agreement and subject to the rights we reserve in Section 3.4 below, from and after the Agreement Date, we will not grant to others the right to operate a Petro Center from any location, fixed or permanent, at the Site or within the Protected Area (if any).
If no Protected Area is designated in Exhibit "C", then you have no territorial protection rights for your Franchise.
- 3.4 Rights We Reserve.
We and our Affiliates retain the right in our sole judgment to grant ourselves or grant others the right to do anything that is not expressly granted to you exclusively in this Agreement, including without limitation:
- (a) to grant licenses or franchises to others to own, establish, or operate Petro Centers, or to own, establish and operate Petro Centers anywhere, except your Protected Area (if any);
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the specifics of a franchisee's protected area, if any, are outlined in Exhibit C of the Franchise Agreement. If Exhibit C does not designate a Protected Area, the franchisee will not have any territorial protection rights.
Petro Stopping Center retains the right to operate or franchise others outside of a franchisee's protected area. They can also operate businesses, truck stops, or travel centers (including TA Centers or TA Express Centers) both within and outside the protected area, even using similar programs. Petro Stopping Center can sell products and services through various channels, including telephone, mail order, kiosks, co-branded sites, the internet, and other e-commerce methods, regardless of the franchisee's protected area.
Furthermore, Petro Stopping Center has the right to allow a person who purchases or assumes the operation of more than one Petro Center to rebrand their other existing facilities as a Petro Center, even if those facilities are located within a franchisee's protected area. The franchisee and their owners also agree to certain covenants, including not competing within the protected area, within 75 miles of the protected area (or the site if there is no protected area), or within 75 miles of any other Petro Center. They also cannot compete anywhere in the United States or Canada with a regional or national chain operating a competitive business.
If the lease expires or terminates, or if the site becomes unusable, Petro Stopping Center may allow the franchisee to relocate to another site within the protected area, provided they comply with Petro System Standards. However, Petro Stopping Center does not provide any representation or warranty regarding the suitability of the protected area or site for a Petro Center.