Can Petro Stopping Center require franchisees to purchase all items from Approved Suppliers?

Products and product or service categories;

• 1. designated or Approved Suppliers (which may include us or our Affiliates) of all assets used or usable in the operation of your Petro Center (the "Operating Assets"), Computer Systems, Proprietary Supplies, Motor Fuel, Products and Services.

In order to maintain the quality and uniformity of the Products and Services offered at the Petro Center, we may require you to purchase all items, goods, products, ingredients, fixtures, furnishings, equipment, décor items and signage from suppliers (which may include us or our Affiliates) who demonstrate to our continuing satisfaction the ability to meet the Petro System Standards; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved in writing by us and not thereafter disapproved ("Approved Suppliers").

Certain items are proprietary to the Petro System or its Affiliates, incorporate our trade secrets or bear the Marks, including employee clothing, uniforms, stationary, forms, Products and advertising materials or are otherwise designated as such by us ("Proprietary Supplies"). We reserve the right to require you to purchase Products, Proprietary Supplies, and/or Motor Fuel from us, our Affiliates, or Approved Suppliers. We currently specify certain brands of product (such as tires, motor oil, and coffee) that you must offer at your Petro Center. Although we have negotiated volume purchasing arrangements with Approved Suppliers of these products, we do not presently require you to purchase these branded products from a particular source.

We do, however, have the absolute right to limit the suppliers with whom you deal. We may restrict your sources of materials, fixtures, equipment, furniture, signs, products, goods, and services now and in the future, in order to protect our trade secrets, assure quality, assure a reliable supply of products and services that meet our Petro System Standards, achieve better terms and delivery service, control usage of the Marks, and monitor the manufacture, packaging, processing and sale of these items. If we, at our option, limit the sources of certain materials, fixtures, equipment, furniture, signs, products, goods, and services to us, or to our Affiliates and/or specified exclusive or approved sources, then you must acquire these only from these approved sources at prices we or they decide to charge. Specifically, we reserve the right to designate ourself or an Affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel and we have no obligation to evaluate or consider alternative suppliers of Proprietary Supplies or Motor Fuel. Any purchases you make from us or from our Affiliates, whether required or voluntary, may be at prices exceeding our cost.

If you desire to purchase or lease any unapproved product, supplies, service or equipment or purchase or lease any approved product, supplies, service or equipment from an unapproved supplier, you must notify us in writing and request approval. We have the right to require that our representatives be permitted to inspect the proposed supplier's facilities and test or evaluate the proposed supplier's product, supplies, service or equipment. We have the right to request that samples be delivered to us or to an independent testing facility chosen by us. A charge not to exceed the reasonable cost of the inspection and the actual cost of the test will be paid by you or the unapproved supplier. We will, within 30 days of receipt of a completed request and completion of the evaluation and testing, notify you in writing of our approval or disapproval of the supplier and/or the proposed product, supplies, service or equipment.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)