Who has the sole discretion to control litigation related to Petro Stopping Center's Marks or Copyrights?

According to the 2025 Petro Stopping Center Franchise Disclosure Document, Petro Stopping Center retains significant control over the defense of claims related to the use of its Marks or Copyrights. Specifically, if a third party claims that a franchisee's authorized use of Petro Stopping Center's Marks or Copyrights infringes on their trademark rights, Petro Stopping Center has the right to defend that claim.

If Petro Stopping Center chooses to defend such a claim, it assumes the right to manage the defense, including the ability to compromise, settle, or otherwise resolve the claim. Petro Stopping Center also has the authority to decide whether or not to appeal a final determination of the claim. This means that franchisees must relinquish control over the legal strategy and decisions related to these types of claims to Petro Stopping Center.

This arrangement has important implications for prospective franchisees. While Petro Stopping Center offers to indemnify franchisees against damages they are held liable for in such proceedings, this indemnification is contingent on the franchisee providing timely notice of the claim and complying with all terms of the franchise agreement. Furthermore, if Petro Stopping Center takes over the defense, it is not obligated to reimburse the franchisee for any attorney fees they may have incurred. Therefore, franchisees need to be aware that while they may receive support from Petro Stopping Center in trademark or copyright infringement claims, the franchisor ultimately controls the litigation and its resolution.