What representations and warranties does a prospective Petro Stopping Center franchisee make to the franchisor?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Our approval of your request to purchase a Franchise is made in reliance on all of your representations and warranties.
As an inducement to our entry into this Agreement, you represent and warrant to us that:
(a) all statements you have made and all materials you have submitted to us in connection with your purchase of the Franchise, including with respect to your experience, qualifications, other business activities, and finances, are accurate and complete and that you have made no material misrepresentations or material omissions in obtaining the Franchise;
(b) you will at all times faithfully, honestly and diligently perform your obligations, continuously exert your best efforts to promote and enhance the Petro Center and not engage in any other business or activity that conflicts with your obligations to operate the Petro Center in compliance with this Agreement;
(c) there are no judgments outstanding against you or any of your Owners or Affiliates and there are no lawsuits, arbitrations, or claims pending or, to your knowledge, threatened against any of the foregoing and you will promptly notify us if any lawsuits, arbitrations, or claims are made, filed, or threatened against you or any of your Owners during the Term; and
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the franchisor's approval of a franchise purchase is based on the franchisee's representations and warranties. As an incentive for Petro Stopping Center to enter into the Franchise Agreement, the franchisee makes several guarantees to the franchisor.
First, the franchisee confirms that all statements and materials submitted during the franchise purchase process are accurate and complete. This includes information about the franchisee's experience, qualifications, other business activities, and finances. The franchisee warrants that there have been no material misrepresentations or omissions made during the process of obtaining the franchise.
Second, the franchisee commits to performing their obligations faithfully, honestly, and diligently. They must continuously exert their best efforts to promote and enhance the Petro Stopping Center. Furthermore, the franchisee must not engage in any other business or activity that would conflict with their obligation to operate the Petro Stopping Center in compliance with the Franchise Agreement.
Third, the franchisee confirms that there are no outstanding judgments against them or their owners or affiliates. They also warrant that there are no pending or threatened lawsuits, arbitrations, or claims against any of the aforementioned parties. The franchisee is obligated to promptly notify Petro Stopping Center if any lawsuits, arbitrations, or claims are made, filed, or threatened against them or their owners during the term of the Franchise Agreement.