What representations and warranties does the franchisee make to Petro Stopping Center regarding restricted persons?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.6 Restricted Persons Representations and Warranties.
You represent and warrant to us that, as of the date of this Agreement and at all times during the term hereof, and to your actual or constructive knowledge, neither you, any affiliate of you, any individual or entity having a direct or indirect ownership interest in you or any such affiliate (including any shareholder, general partner, limited partner, member or any type of owner), any officer, director or management employee of any of the foregoing, nor any funding source you utilize is or will be identified on the list of the U.S.
Treasury's Office of Foreign Assets Control (OFAC); is directly or indirectly owned or controlled by the government of any country that is subject to an embargo imposed by the United States government; is acting on behalf of any country or individual that is subject to such an embargo; or, is involved in business arrangements or other transactions with any country or individual that is subject to an embargo.
You agree that you will immediately notify us in writing immediately upon the occurrence of any event which would render the
foregoing representations and warranties incorrect.
Notwithstanding anything to the contrary in this Agreement, you may not allow, effect or sustain any transfer, assignment or other disposition of this Agreement to a "Specially Designated National or Blocked Person" (as defined below) or to an entity in which a Specially Designated National or Blocked Person has an interest.
For the purposes of this Agreement, "Specially Designated National or Blocked Person" means: (i) a person or entity designated by OFAC (or any successor officer agency of the U.S. government) from time to time as a "specially designated national or blocked person" or similar status; (ii) a person or entity described in Section 1 of U.S.
Executive Order 13224, issued on September 23, 2001; or (iii) a person or entity otherwise identified by any government or legal authority as a person with whom you (or any of your owners or affiliates) or we (or our owners or affiliates) are prohibited from transacting business.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees make specific representations and warranties concerning restricted persons. As of the agreement date and throughout its term, the franchisee confirms that neither they, their affiliates, individuals or entities with ownership interests, nor any funding sources are listed on the U.S. Treasury's Office of Foreign Assets Control (OFAC) list. They also warrant that they are not owned or controlled by a government subject to a U.S. embargo, acting on behalf of such a country or individual, or involved in transactions with them.
The franchisee must immediately notify Petro Stopping Center in writing if any event occurs that would make these representations and warranties incorrect. Furthermore, franchisees are prohibited from transferring or assigning the agreement to a "Specially Designated National or Blocked Person," which includes those designated by OFAC or described in Section 1 of Executive Order 13224. This ensures Petro Stopping Center complies with U.S. regulations and avoids dealing with restricted parties.
This clause is crucial for Petro Stopping Center to maintain legal and ethical standards, ensuring they do not engage in business with entities or individuals blacklisted by the U.S. government. For a prospective franchisee, this means conducting thorough due diligence to ensure all parties involved in their business, including funding sources and owners, are compliant with these regulations. Failure to comply could result in severe penalties and termination of the franchise agreement.