After termination or expiration of the franchise agreement, what geographic restrictions apply to Petro Stopping Center franchisees and their owners regarding involvement in a Competitive Business?
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 FDD, Petro Stopping Center franchisees and their owners face certain geographic restrictions regarding involvement in a competitive business after the termination or expiration of their franchise agreement. These restrictions extend to the franchisee, their owners, and their immediate family (spouses and children).
Specifically, for a period of two years after the agreement's termination or expiration, franchisees and their owners are prohibited from owning, operating, or assisting in operating a Competitive Business within certain areas. These areas include the Protected Area (if any), including the Site of the former Petro Stopping Center. If there is no Protected Area, the restriction extends to within 60 miles of the Site. Additionally, the restriction applies within 60 miles of any other Petro Center (franchised or otherwise) that is in operation or under construction and has been granted the right to operate in that area.
Furthermore, franchisees and their owners are not allowed to lease, license, or permit the Site to be used by a regional or national chain operating a Competitive Business, which includes but is not limited to brands like Pilot, Bosselman, Flying J, Love's, or Sapp Bros. The two-year restriction period begins either on the effective date of termination or expiration, or when the individual starts complying with these restrictions, whichever is later. If compliance requires a court order, the two-year period starts upon the entry of that order.