What standards must a Petro Stopping Center franchisee adhere to in operating their center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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Any fees paid to Petro Franchise or its Affiliates are not refundable. Fees paid to any third party may be refundable, depending upon the contracts, if any, between you and that third party.
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Sources of Products and Services
To ensure the high standards of quality and service maintained in the Petro Center, you must operate the Petro Center in strict conformity with the Petro System Standards that we provide in the Manuals or otherwise in writing. We may update and revise the Petro System Standards and will notify you of these changes by electronic or written communication (including the Internet). You must review, understand, adhere to and abide by all Petro System Standards. We may modify, add to, or rescind any Petro System Standard to adapt the Petro System to changing conditions, competitive circumstances, business strategies, business practices, technological innovations and other changes we deem appropriate in our business judgment. You must comply with all such modifications, additions, and rescissions.
The standards and specifications we provide to you may include, but are not limited to, any or all of the following:
- design, layout, decor, appearance and lighting; periodic maintenance, cleaning and sanitation; periodic remodeling; replacement of obsolete or worn-out leasehold improvements, fixtures, furnishings, equipment and signs; periodic painting; and use of interior and exterior signs, emblems, lettering and logos, and illumination;
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- types, models and brands of required fixtures, furnishings, equipment, signs, computers, software, materials and supplies;
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- required or authorized Services and Products and product or service categories;
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- designated or Approved Suppliers (which may include us or our Affiliates) of all assets used or usable in the operation of your Petro Center (the "Operating Assets"), Computer Systems, Proprietary Supplies, Motor Fuel, Products and Services.
In order to maintain the quality and uniformity of the Products and Services offered at the Petro Center, we may require you to purchase all items, goods, products, ingredients, fixtures, furnishings, equipment, décor items and signage from suppliers (which may include us or our Affiliates) who demonstrate to our continuing satisfaction the ability to meet the Petro System Standards; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved in writing by us and not thereafter disapproved ("Approved Suppliers").
Certain items are proprietary to the Petro System or its Affiliates, incorporate our trade secrets or bear the Marks, including employee clothing, uniforms, stationary, forms, Products and advertising materials or are otherwise designated as such by us ("Proprietary Supplies"). We reserve the right to require you to purchase Products, Proprietary Supplies, and/or Motor Fuel from us, our Affiliates, or Approved Suppliers. We currently specify certain brands of product (such as tires, motor oil, and coffee) that you must offer at your Petro Center. Although we have negotiated volume purchasing arrangements with Approved Suppliers of these products, we do not presently require you to purchase these branded products from a particular source.
We do, however, have the absolute right to limit the suppliers with whom you deal. We may restrict your sources of materials, fixtures, equipment, furniture, signs, products, goods, and services now and in the future, in order to protect our trade secrets, assure quality, assure a reliable supply of products and services that meet our Petro System Standards, achieve better terms and delivery service, control usage of the Marks, and monitor the manufacture, packaging, processing and sale of these items. If we, at our option, limit the sources of certain materials, fixtures, equipment, furniture, signs, products, goods, and services to us, or to our Affiliates and/or specified exclusive or approved sources, then you must acquire these only from these approved sources at prices we or they decide to charge. Specifically, we reserve the right to designate ourself or an Affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel and we have no obligation to evaluate or consider alternative suppliers of Proprietary Supplies or Motor Fuel. Any purchases you make from us or from our Affiliates, whether required or voluntary, may be at prices exceeding our cost.
If you desire to purchase or lease any unapproved product, supplies, service or equipment or purchase or lease any approved product, supplies, service or equipment from an unapproved supplier, you must notify us in writing and request approval. We have the right to require that our representatives be permitted to inspect the proposed supplier's facilities and test or evaluate the proposed supplier's product, supplies, service or equipment. We have the right to request that samples be delivered to us or to an independent testing facility chosen by us. A charge not to exceed the reasonable cost of the inspection and the actual cost of the test will be paid by you or the unapproved supplier. We will, within 30 days of receipt of a completed request and completion of the evaluation and testing, notify you in writing of our approval or disapproval of the supplier and/or the proposed product, supplies, service or equipment. We may, at our option, re-inspect the facilities of any such approved supplier and to re-test or re-evaluate any previously approved products, supplies, service or equipment and to revoke our approval upon the supplier's failure to continue to meet any of our then-existing supplier, product, equipment or service criteria, or as otherwise reasonably determined by us.
We and our Affiliates may negotiate group or volume purchasing arrangements with certain Approved Suppliers. We and our Affiliates will be entitled to all rebates, bonuses and promotional benefits associated with those programs. We may derive revenue from the purchase by you of products or services from Approved Suppliers. We and any of our Affiliates have the right to receive payments or other material consideration from Approved Suppliers on account of their actual or prospective dealings with our franchisees and to retain or use all amounts of revenue we or our Affiliates receive without restriction for any purposes we or our Affiliates deem appropriate. We, in our sole judgment, may concentrate purchases with one or more Approved Suppliers or to obtain lower prices, advertising support, and/or services for the benefit of us or our Affiliates, or for any other reason that we deem appropriate.
In addition, we may develop certain programs and terms under which we, our Affiliates, certain franchisees or others receive certain negotiated benefits or terms from Approved Suppliers. You must follow all of our policies and procedures for participation in and termination of such programs. The program rules may require you to place or display at your Petro Center certain approved signs, emblems, lettering, logos and display materials. We or our Approved Suppliers may require you to enter into certain agreements with them (subject to our approval) in connection with your participation in such programs.
We or our Affiliates may be designated as an Approved Supplier or the sole Approved Supplier of any item, in our sole discretion. We may establish supply facilities or servicing capabilities owned by us or our Affiliates which we may designate as an Approved Supplier. We or our Affiliates may derive revenue from the direct sale or lease of products or services to you. We or our Affiliates also may derive revenue or otherwise benefit from the sale or lease of goods or services to you from Approved Suppliers. Subject to any intervening applicable laws, we and our parents and Affiliates may retain 100% of any rebates, commissions or other consideration paid by suppliers. We estimate that your purchases from Approved Suppliers or from suppliers that we designate, and otherwise under our standards, will be approximately 2% to 6% of the total purchases and leases of products and services needed to establish the Petro Center, and 2% to 6% of the total purchases and leases of products and services needed to operate the Petro Center. We may use any of our Affiliates' resources, including programs, services, and personnel, that we deem appropriate in our sole discretion.
We do not provide material benefits to you based on your purchase of particular products or services or use of designated or Approved Suppliers. Certain designated or Approved Suppliers may provide bulk discounts, rebates, and other incentives to you in connection with your purchase of particular products or services.
TA Operating charges a $33 per call transaction fee for coordinating and referring repairs to franchisees in connection with the TA Truck Service Emergency Roadside Assistance Program.
4922-8379-7797, v. 1 - 31 - This fee is only payable to the extent to which a franchisee desires and accepts a given referral for highway breakdown service repair.
Except for any nominal interests in our affiliates, none of our officers currently own an interest in any supplier.
For the fiscal year ended December 31, 2024, Petro Franchise had no revenue from required purchases and leases by franchisees.
For the fiscal year ended December 31, 2024, our Affiliate TA Operating's revenue from required purchases and leases by franchisees totaled $229,691. This information was obtained from TA Operating's internal accounting records.
Neither we, our Affiliates, nor the individuals listed in Item 2 are the sole approved suppliers of any products or services, except our Affiliates are the sole approved supplier of the Proprietary Systems (as defined below) and the following products and services: shower towels.
You must use certain systems in the operation of your Petro Center.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees must operate their centers in strict accordance with the Petro System Standards, which are detailed in the manuals and other written communications. These standards are subject to change as Petro Stopping Center adapts to market conditions, and franchisees are obligated to adhere to all updates. These standards cover a wide array of operational aspects, including the center's design, maintenance, and appearance, as well as the types of equipment, services, and products offered. Franchisees are also required to source assets, computer systems, supplies, motor fuel, products, and services from designated or approved suppliers, which may include Petro Stopping Center or its affiliates.
To maintain quality and uniformity, Petro Stopping Center may require franchisees to purchase all items, goods, products, ingredients, fixtures, furnishings, equipment, décor items, and signage from approved suppliers who meet the Petro System Standards. Franchisees must also follow Petro Stopping Center's policies and procedures for participating in any programs with approved suppliers, which may include displaying approved signs and entering into agreements with these suppliers. Petro Stopping Center or its affiliates may be designated as the sole approved supplier of any item, and they may derive revenue from sales to franchisees. The FDD estimates that purchases from approved or designated suppliers will be approximately 2% to 6% of the total purchases and leases needed to establish and operate the Petro Center.
Petro Stopping Center franchisees are also obligated to maintain specific insurance policies. These policies must protect the franchisee, Petro Franchise, and their respective officers, directors, partners, and employees against any loss, liability, or expense. Franchisees must provide a Certificate of Insurance to Petro Franchise for approval, showing compliance with insurance requirements, and must provide copies of the insurance policies upon request. Minimum insurance coverages include comprehensive general liability insurance and product liability insurance with limits of $10,000,000 per occurrence, all-risk property insurance for full repair and replacement value, commercial automobile liability insurance with a $5,000,000 limit, pollution legal liability insurance with a $5,000,000 limit, worker's compensation insurance, employer's liability insurance with a $1,000,000 limit, and cyber risk insurance with a $2,000,000 limit per claim. Petro Stopping Center may modify these minimum insurance requirements and notify franchisees of changes in writing.
Furthermore, franchisees must obtain Petro Stopping Center's prior approval before entering into any lease, sub-lease, franchise agreement, or management agreement with a third party related to the site or Petro Center. Petro Stopping Center may require changes to these agreements to protect its rights and must approve any modifications. Franchisees are also required to use certain proprietary systems, including rewards, shop, and shower systems, purchased from TA Operating, the sole approved supplier of these systems. Overall, the standards ensure uniformity and quality across all Petro Stopping Center locations, but also place significant restrictions on franchisees' operational autonomy and vendor choices.