What does the security interest granted to Petro Stopping Center by the franchisee secure?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, by signing the Franchise Agreement, the franchisee grants Petro Franchise Systems LLC a first priority security interest in the Collateral. The Collateral is defined as the Operating Assets, including furniture, fixtures, equipment, supplies, accounts, receivables, inventory, operating assets, records, inventory and all tangible and intangible assets constituting the Petro Center and the Site, including the Lease, and replacements.

This security interest is subject to subordination to an Approved Financing that meets the requirements outlined in Section 4.4 of the agreement. This subordination is formalized through an agreement with the franchisee's lender, which Petro Stopping Center must approve.

In practical terms, this means that Petro Stopping Center has a legal claim on the franchisee's business assets to protect its financial interests. If the franchisee defaults on their obligations to Petro Stopping Center, Petro Stopping Center can seize these assets. However, if the franchisee obtains financing from a lender that Petro Stopping Center approves, the lender's claim on the assets will take precedence over Petro Stopping Center's security interest.