Under what circumstances might Petro Stopping Center limit the suppliers with whom a franchisee can deal?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, Petro Stopping Center has the absolute right to limit the suppliers with whom a franchisee deals. Petro Stopping Center may restrict a franchisee's sources for materials, fixtures, equipment, furniture, signs, products, goods, and services, both now and in the future.
These restrictions can be put in place to protect Petro Stopping Center's trade secrets, ensure quality, guarantee a reliable supply of products and services that meet Petro Stopping Center System Standards, achieve better terms and delivery service, control the usage of their Marks, and monitor the manufacture, packaging, processing, and sale of these items. If Petro Stopping Center limits the sources of certain items to themselves, their affiliates, or specified exclusive or approved sources, franchisees must acquire these items only from those approved sources at prices that Petro Stopping Center or the approved sources decide to charge.
Specifically, Petro Stopping Center reserves the right to designate itself or an affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel. Petro Stopping Center has no obligation to evaluate or consider alternative suppliers of Proprietary Supplies or Motor Fuel. Any purchases a franchisee makes from Petro Stopping Center or its Affiliates, whether required or voluntary, may be at prices exceeding Petro Stopping Center's cost.