What is the scope of the in-term covenant not to solicit employees of Petro Stopping Center or its affiliates?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) In-Term Covenant Not to Solicit. You and your Owners agree that, during the Term, neither you nor any of your Owners will entice or induce or in any manner influence any Person, who is in our or our Affiliates' employ at a management level, to leave such employ or discontinue such service.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees and their owners are prohibited from enticing, inducing, or influencing any person employed by Petro Stopping Center or its affiliates at a management level to leave their employment or discontinue their service. This restriction applies to both the franchisee and their owners.
This means that a franchisee cannot actively try to recruit or persuade any manager-level employee of Petro Stopping Center or its affiliates to leave their current job. The purpose of this covenant is to protect Petro Stopping Center's investment in its employees and to prevent franchisees from poaching experienced staff who could potentially give them an unfair advantage. This restriction remains in effect throughout the entire term of the franchise agreement.
For a prospective franchisee, this implies that they must be careful not to directly or indirectly solicit employees from Petro Stopping Center's corporate offices or other franchise locations, especially those in management positions. Violation of this covenant could lead to legal repercussions or termination of the franchise agreement. It is essential to ensure that all owners and anyone involved in the business are aware of this restriction and adhere to it strictly.