What is the purpose of the Franchisor Purchase Right for Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor does not exercise its right of first refusal, Lessor or its owners may complete the sale to such offeror pursuant to the substantially material terms of such Offer, provided that, if the sale to such offeror is not completed within 120 days after delivery of such Offer to Franchisor, or if there is a material change in the terms of the sale (which Lessor agrees to promptly communicate to Franchisor), Franchisor will have an additional right of first refusal during the 30 day period following either the expiration of the 120 day period or notice to Franchisor of the material change(s) in the terms of the sale, either on the terms originally offered or the modified terms, at Franchisor's option.
6. Memorandum of Right of First Refusal. Lessor shall execute Franchisor's Memorandum of Right of First Refusal, attached hereto as Exhibit B (the "Memorandum of Rights"), shall cooperate with Franchisor in publicly filing the Memorandum of Rights in the applicable land records, and shall take such further steps as are reasonably requested by Franchisor in order to memorialize Franchisor's Right of First Refusal.
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Petro Stopping Center's franchisor has a right of first refusal if the Lessor (property owner) intends to sell the property. This means that if the Lessor receives an offer to purchase the property, they must first offer it to the franchisor on the same terms. This right allows Petro Stopping Center to maintain control over the location of its franchised businesses, ensuring that the location remains under their brand's umbrella.
If Petro Stopping Center declines to exercise its right of first refusal, the Lessor is free to sell the property to the original offeror, provided the sale is completed within 120 days and the terms remain substantially the same. Should the sale not occur within this timeframe, or if the terms change materially, the Lessor must give Petro Stopping Center another 30-day right of first refusal. This ensures Petro Stopping Center has the opportunity to match the offer even if the circumstances of the sale evolve.
Furthermore, Petro Stopping Center requires the Lessor to execute and publicly file a Memorandum of Right of First Refusal to memorialize this right. This legal documentation protects Petro Stopping Center's interest in maintaining control over the location and ensures that any potential buyer is aware of the franchisor's right to purchase the property first. This is a common practice in franchising to protect brand integrity and location control.