Under the Petro Stopping Center franchise agreement, is verbal approval considered valid?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor you will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that our respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the franchise agreement stipulates that neither Petro Stopping Center nor the franchisee can make any agreements, warranties, guarantees, or representations on behalf of the other party unless expressly authorized in writing. This requirement for written authorization extends to incurring debt or representing the relationship as anything other than franchisor and franchisee.
This provision is designed to protect both Petro Stopping Center and its franchisees from potential liabilities arising from unauthorized actions or representations. By requiring express written authorization, the agreement aims to ensure clarity and accountability in all dealings and obligations. This reduces the risk of misunderstandings or disputes over commitments made without proper consent.
For a prospective Petro Stopping Center franchisee, this means that any agreement, promise, or representation made by Petro Stopping Center that is not documented in writing is not binding. Franchisees should ensure that all important terms and conditions are clearly stated in writing to avoid potential issues or disagreements in the future. This requirement for written authorization is a common practice in franchising to provide a clear record of agreements and responsibilities.