What records is Petro Stopping Center entitled to inspect and audit at a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
annual profit and loss statement, statement of cash flows and a balance sheet for your Center as of the end of the calendar year.
- 14.3 Access to Information. You agree to verify and sign each report and financial statement in the manner we prescribe. We have the right to disclose data derived from such reports. We have the right as often as we deem appropriate (including on a daily basis) to access all computer registers and other Computer Systems that you are required to maintain in connection with the operation of the Petro Center and to retrieve all information relating to the Petro Center's operations. At our request, you will promptly send us true and correct copies of all federal and state income, sales, excise and other tax returns.
15. INSPECTIONS AND AUDITS.
- 15.1 Our Right to Inspect the Petro Center. To determine whether you and the Petro Center are complying with this Agreement and all Petro System Standards, we and our designated agents have the right at any time during your regular business hours, and without prior notice to you, to:
- (a) inspect the Petro Center and any other aspect of or facility used by the Petro Center (if any);
- (b) observe, photograph and videotape the operations of the Petro Center and any other aspect of or facility used by the Petro Center for such consecutive or intermittent periods as we deem necessary;
- (c) remove samples of any products, materials or supplies for testing and analysis;
- (d) interview Personnel and customers of the Petro Center and engage in "secret shopper" type programs;
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Stopping Center has extensive rights to inspect and audit various aspects of a franchisee's business operations. Petro Stopping Center can inspect and copy any books, records, tax returns, and documents related to the operation of the Petro Center. This includes the right to inspect and audit bookkeeping and accounting records, sales and tax records and returns, and other records at any time during business hours without prior notice.
Petro Stopping Center can also access all computer registers and other computer systems that the franchisee is required to maintain in connection with the operation of the Petro Center, retrieving all information relating to the Petro Center's operations. Franchisees must provide true and correct copies of all federal and state income, sales, excise, and other tax returns upon request. Franchisees are also obligated to maintain all books and records in accordance with generally accepted accounting principles during the entire term of the agreement and for seven years following its expiration or termination.
These records include deposit reports and receipts, cash receipts journal, general ledgers, cash disbursement journals, weekly payroll registers, monthly bank statements, supplier invoices (paid and unpaid), accounts payable journals, balance sheets, profit and loss statements, inventory records, and records of wholesale accounts, as well as any other records Petro Stopping Center may require. Furthermore, Petro Stopping Center can use the information obtained as deemed appropriate, and has the right to disseminate operational and financial data throughout the Petro System and to prospects, including providing financial data from the franchisee's Petro Center in their Franchise Disclosure Document.