Must a Petro Stopping Center transferee agree to all terms and conditions of the existing franchise agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Lease or your Petro Center.
16.3 Conditions to Transfer. Prior to the time of any transfer consented to by us:
- (a) you (and your Owners) must be in compliance with this Agreement;
- (b) the transferee and its owners must be of good moral character and reputation, as determined in our reasonable judgment;
- (c) the transferee and its owners must have sufficient business experience, aptitude and financial resources to operate the Petro Center and must otherwise meet our then applicable standards for Petro Center franchisees;
- (d) you must have paid all amounts due us and have submitted all required reports and statements, and made payments to all Approved Suppliers and Preferred Vendors or made arrangements to do so satisfactory to us and them;
- (e) the transferee (or its owners) must have agreed to complete our standard training program regarding the Petro System and Petro System Standards, at their expense;
- (f) the transferee must have agreed to be bound by all of the terms and conditions of this Agreement;
- (g) the transferee must have entered into our then-current form of franchise agreement and such other then-current ancillary agreements as we may require. The thencurrent form of franchise agreement may have significantly different provisions including a higher royalty fee and advertising contribution than that contained in this Agreement. The then-current form of franchise agreement will expire on the expiration date of this Agreement and will contain the same renewal rights, if any, as are available to you;
- (h) the transfer
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, a transferee must agree to all the terms and conditions of the existing franchise agreement. Specifically, prior to any transfer, the transferee must agree to be bound by all the terms and conditions of the existing agreement. However, the transferee may also be required to enter into Petro Stopping Center's then-current form of franchise agreement, which may include significantly different provisions such as higher royalty fees and advertising contributions.
This requirement ensures that the new franchisee is fully aware of and compliant with the obligations and standards set by Petro Stopping Center. This protects the brand's reputation and maintains consistency across all franchise locations. The then-current franchise agreement will expire on the same date as the original agreement and will contain the same renewal rights, if any, as were available to the original franchisee.
In addition to agreeing to the terms of the franchise agreement, the transferee must also complete Petro Stopping Center's standard training program regarding the Petro System and Petro System Standards at their own expense. The transferee is also responsible for upgrading the Petro Center to conform to Petro Stopping Center's then-current standards and specifications within a required timeframe. Furthermore, either the transferor or the transferee must pay a transfer fee of $45,000 to cover expenses related to the transfer, including third-party costs and training. This fee increases to $130,000 if the transfer occurs before the first anniversary of the opening date, but decreases to $10,000 if the transfer is among the owner's.
These conditions ensure that any new franchisee is well-prepared and financially capable of maintaining the standards of a Petro Stopping Center franchise. Prospective franchisees should carefully consider these costs and obligations when evaluating a transfer opportunity.