Who is responsible for upgrading the Petro Stopping Center to current standards before a transfer?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Lease or your Petro Center.
16.3 Conditions to Transfer. Prior to the time of any transfer consented to by us:
- (a) you (and your Owners) must be in compliance with this Agreement;
- (b) the transferee and its owners must be of good moral character and reputation, as determined in our reasonable judgment;
- (c) the transferee and its owners must have sufficient business experience, aptitude and financial resources to operate the Petro Center and must otherwise meet our then applicable standards for Petro Center franchisees;
- (d) you must have paid all amounts due us and have submitted all required reports and statements, and made payments to all Approved Suppliers and Preferred Vendors or made arrangements to do so satisfactory to us and them;
- (e) the transferee (or its owners) must have agreed to complete our standard training program regarding the Petro System and Petro System Standards, at their expense;
- (f) the transferee must have agreed to be bound by all of the terms and conditions of this Agreement;
- (g) the transferee must have entered into our then-current form of franchise agreement and such other then-current ancillary agreements as we may require. The thencurrent form of franchise agreement may have significantly different provisions including a hig
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the responsibility for upgrading the Petro Stopping Center to meet the then-current standards and specifications falls on the transferee. This must be done at the transferee's sole cost and expense within the timeframe required by Petro Stopping Center.
This requirement ensures that all Petro Stopping Center locations maintain a consistent brand image and service quality. For a prospective franchisee looking to buy an existing Petro Stopping Center, this means they need to be prepared to invest in upgrades to meet the latest standards. The cost of these upgrades can vary significantly depending on the age and condition of the existing center and the extent of changes in Petro Stopping Center's standards.
Furthermore, in addition to upgrading the physical location, the transferee must also complete Petro Stopping Center's standard training program regarding the Petro System and Petro System Standards at their own expense. The transferee must also enter into the then-current form of the franchise agreement, which may include significantly different provisions such as higher royalty fees and advertising contributions. The transferee is also responsible for paying a $45,000 transfer fee to Petro Stopping Center.