Is Petro Stopping Center required to use designated or approved suppliers for operating assets?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Approved Suppliers Those suppliers we designate or approve from time to time, which may include us or our Affiliates, (i) to sell you Products, Motor Fuel, Proprietary Supplies and Operating Assets and (ii) to provide Services to you.
You understand and acknowledge that our changes to Petro System Standards may include, among other things, changes to the Marks, the Petro Center facade and structure, Operating Assets, the Products and Services to be offered at the Petro Centers, interior specifications and equipment.
You agree to comply with these changes to Petro System Standards.
You acknowledge and agree that: (a) monies, benefits or other remuneration that we receive in connection with your purchases of Proprietary Supplies, Approved Products, your participation in Preferred Vendor Programs or your purchases from Approved Suppliers is fair and appropriate compensation to us in connection with our active efforts to evaluate Preferred Vendors and Approved Suppliers, our ongoing efforts to monitor and evaluate whether they continue to meet our requirements for participation as Preferred Vendors and Approved Suppliers, our administration of Preferred Vendor Programs and our activities to continue to improve and enhance the Petro System; and (b) such monies or remuneration are fully earned by us.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees are required to use designated or approved suppliers for operating assets. The Franchise Agreement defines "Approved Suppliers" as those suppliers that Petro Franchise Systems LLC designates or approves from time to time, which may include themselves or their affiliates, to sell franchisees Operating Assets, among other things.
The FDD specifies that Petro Stopping Center may modify its standards, which may include changes to Operating Assets. Franchisees are obligated to comply with these changes to Petro System Standards.
Petro Stopping Center retains the right to receive revenue from Approved Suppliers or Preferred Vendors in connection with franchisee purchases. This compensation is considered fair for their efforts in evaluating and monitoring these suppliers and administering Preferred Vendor Programs. This arrangement is typical in franchising, where franchisors often negotiate with suppliers to benefit the system and are compensated for this service.