What is the purpose of the Subordination Agreement for Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- **8.
No Subordination**: The Franchisee shall not permit the Lease to become subordinate to any lien without first obtaining Franchisor's written consent, other than the lien created by this Assignment, the Franchise Agreement, the Lessor's lien under the Lease or state law, liens securing bank financing for the operations of Franchisee on the Site and the agreements and other instruments referenced herein.
Neither the Lessor nor the Franchisee may terminate, modify or amend any of the provisions or terms of the Lease without the prior written consent of the Franchisor.
Any attempt at termination, modification or amendment of any of the terms without such written consent is null and void.
- **9.
Exercise of Remedies**: In any case of default by the Franchisee under the terms of the Lease or under the Franchise Agreement, the Franchisor shall be entitled to exercise any one or more of the following remedies in its sole discretion:
(a) to take possession of the Site, or any part thereof, personally, or by its agents or attorneys;
(b) to, in its discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Site, together with all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;
(c) to exclude the Franchisee, its agents or employees from the Site;
(d) as attorney-in-fact for the Franchisee, or in its own name, and under the powers herein granted, to hold, operate, manage and control the Petro Center and conduct the business, if any, thereof, either personally or by its agents, with full power to use such measures, legally rectifiable, as in its discretion may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to the Franchisor to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
(e) to cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground which would entitle the Franchisor to cancel the same;
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the Franchisee is not allowed to allow the lease to become subordinate to any lien without first obtaining written consent from Petro Stopping Center. The exceptions to this rule are the lien created by the assignment, the Franchise Agreement, the Lessor's lien under the lease or state law, liens securing bank financing for the operations of the Franchisee on the Site and the agreements and other instruments referenced.
Furthermore, neither the Lessor nor the Franchisee is allowed to terminate, modify, or amend any of the provisions or terms of the lease without the prior written consent of Petro Stopping Center. Any attempt to terminate, modify, or amend any of the terms without written consent is considered null and void.
In the event of default by the Franchisee under the terms of the lease or under the Franchise Agreement, Petro Stopping Center is entitled to exercise remedies at its sole discretion. These remedies include taking possession of the site, entering and maintaining possession of the site with all its contents, excluding the Franchisee from the site, and operating the Petro Center business, with the power to cure the default. Petro Stopping Center can also cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee.