After termination or expiration of the Petro Stopping Center franchise agreement, what activities are franchisees and their owners prohibited from engaging in within the specified geographic areas?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 19.4(a) of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
"Competitive Restrictions.
- (d) Post-Term Non-Compete Covenants. You and your Owners agree that for a period of two (2) years commencing on the effective date of termination or expiration of this Agreement, or the date on which a Person restricted by this Section begins to comply with this Section, whichever is later, neither you nor any of your Owners (nor any of your or your Owners' spouses or children) will:
- (i) own, operate or assist in operating, or have any direct, indirect, or beneficial interest in (whether through stock ownership, partnership, trust, joint venture, management agreement or otherwise) any Competitive Business located:
- within the Protected Area (if any), including at the Site;
- (i) own, operate or assist in operating, or have any direct, indirect, or beneficial interest in (whether through stock ownership, partnership, trust, joint venture, management agreement or otherwise) any Competitive Business located:
- within 60 miles of the Protected Area (if any), and if not, within [60] miles of the Site, and including at the Site;
- within 60 miles of any other Petro Center (franchised or otherwise) in operation or which is under construction and granted the right to operate in such area on the later of the effective date of the termination or expiration of this Agreement or the date on which a Person restricted by this Section complies with this Section; or
INTENTIONALLY OMITTED
(ii) lease, license or otherwise permit the Site, or any portion of it, to be used or occupied by a regional or national chain operating a Competitive Business (including but not limited to Pilot, Bosselman, Flying J, Love's, or Sapp Bros.)
If any Person restricted by this Section 19.4(a) refuses voluntarily to comply with the foregoing obligations, the 2-year period will commence with the entry of a court order if necessary, enforcing this provision."
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, both the franchisee and their owners are subject to certain competitive restrictions for two years after the termination or expiration of the franchise agreement. Specifically, they cannot own, operate, or assist in operating a Competitive Business, nor have any direct or indirect interest in one. This restriction applies to the Protected Area (if any), including the Site of the Petro Stopping Center.
Furthermore, the non-compete extends to a 60-mile radius around the Protected Area, or if there is no Protected Area, then within 60 miles of the Site. This also includes the Site itself. The restriction also includes a 60-mile radius around any other Petro Center, whether franchised or company-owned, that is either in operation or under construction and has been granted the right to operate.
In addition to these restrictions, franchisees and their owners are prohibited from leasing, licensing, or allowing the Site to be used by a regional or national chain that operates a Competitive Business. Examples of such chains include Pilot, Bosselman, Flying J, Love's, or Sapp Bros. The two-year period for these restrictions begins either on the effective date of termination or expiration of the agreement, or the date when the restricted person begins to comply with these terms, whichever is later. If compliance requires a court order, the two-year period starts upon the entry of that order.