What is the role of the 'Lender' in the Subordination Agreement for Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or in pdf format by electronic transmission shall be deemed to be their original signatures for all purposes.
IN WITNESS WHEREOF, the parties have caused this Subordination Agreement to be executed the day and year set forth above.
PETRO FRANCHISE SYSTEMS LLC
[LENDER] [FRANCHISEE] STATE OF COUNTY OF _ I CERTIF Y that on came before me and acl , 202_, of Petro Franchise Systems y satisfaction, that: LLC, personally ` ' * _ nchisor signed and delivered the within the authority to do so; and ins strument as his voluntar ry act and deed o true and correct sealed and delivered the foregoing f Franchisor, for the purposes therein copy of this instrument and of all other ex ic of the State of Notary Publ My commission of expires: STATE OF COUNTY O F I CER personally ca TIFY that on , 202_, of [Franchisee Name] faction, that: me before me and ac knowledged to my satisf (a) * uthorized agent for Fran chisee signed and delivered the within authority to do so; and lf of Franchisee with the (b) instrument as his v oluntary act and deed of vived a true and correct c sealed and delivered the foregoing Franchisee, for the purposes therein copy of this instrument and of all other c of the State of Notary Public My commiss: ion expires: STATE OF COUNTY O F I CEF RTIFY that on , 202_,d to my satisfaction, that: of [Lender Name] personally me and acknowledged (a) * uthorized agent for Lender signed and delivered the within rity to do so;
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the Lender is a party to the Subordination Agreement, along with Petro Franchise Systems LLC and the Franchisee. The Subordination Agreement requires signatures from authorized agents of Petro Franchise Systems LLC, the Franchisee, and the Lender. Each party's signature must be acknowledged by a notary public, confirming that the authorized agent signed the document on behalf of their respective entity. The agreement also requires providing notice to the Lender, with specific address details to be included in the agreement. These addresses can be changed with written notice to all parties involved.
The Subordination Agreement ensures that the lender's interests are considered and addressed in relation to the franchise agreement and the franchisee's obligations. By signing the agreement, the Lender acknowledges the terms and conditions outlined within it, agreeing to subordinate their interests to those of Petro Stopping Center to the extent specified in the agreement. This arrangement is typical in franchise agreements where financing is involved, as it clarifies the priority of claims and responsibilities among the parties.
Prospective franchisees should carefully review the Subordination Agreement and understand the implications of the Lender's role. It is important to ensure that the financing arrangements align with the terms of the franchise agreement and that all parties are aware of their respective obligations and rights. Consulting with legal and financial advisors is recommended to fully comprehend the agreement and its potential impact on the franchisee's business operations.