Under what circumstance is the financing review fee charged to a Petro Stopping Center franchisee?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that the terms of any financing you seek to obtain require us to be made a party to any document relating to the financing, we retain the right to approve, in advance, any provisions affecting us in any such documentation, which provisions shall be in form acceptable to us (in our sole discretion) and our counsel. Any and all costs and expenses, including reasonable attorneys fees, incurred by us in connection with the review or negotiation of the Loan Documents and the negotiation of any subordination agreement, shall be promptly paid by you. In addition, you must pay us the Financing Review Fee set forth in Section 9.7 and reimburse us for such other reasonable legal fees we incur in connection with our review and negotiation of any Loan Documents. We will typically complete our review of Loan Documents within two (2) weeks of your submission of a full and complete set of Loan Documents.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, a franchisee will be charged a financing review fee if they seek financing and the terms of that financing require Petro Stopping Center to be a party to any document related to the financing. In this case, Petro Stopping Center retains the right to approve any provisions affecting them within the financing documentation.
The franchisee is responsible for promptly paying all costs and expenses, including reasonable attorney's fees, incurred by Petro Stopping Center in connection with the review or negotiation of loan documents and any subordination agreements. In addition to these costs, the franchisee must also pay the Financing Review Fee as outlined in Section 9.7 of the FDD and reimburse Petro Stopping Center for other reasonable legal fees incurred during the review and negotiation of loan documents.
Petro Stopping Center states that they will typically complete their review of the loan documents within two weeks of receiving a full and complete set of the documents from the franchisee. This fee is to cover Petro Stopping Center's costs associated with ensuring that the financing does not negatively impact their interests or the Petro Stopping Center brand.