How must the administrative fee be paid by a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ees in the future based on a number of factors, including: (x) the number of prior extensions requested; (y) the number of franchised locations you have; and (z) situation-specific factors. The Opening Extension Fee is payable if and when we grant an opening extension.
OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Ongoing Royalty Fees | You must pay us (i) 4.5% of all Non-QSR Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month (the "Threshold Amount") and 2% of all Non QSR Gross Sales in excess of the Threshold Amount; (ii) 2% of all QSR Gross Sales; |
Source: Item 6 — OTHER FEES (FDD pages 27–32)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the administrative fee is 0.3% of all Non-Fuel Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month (the "Administrative Threshold Amount"). This fee must be paid monthly, specifically 10 business days following the Report Day, and must be remitted via electronic funds transfer.
For a prospective Petro Stopping Center franchisee, this means that a portion of their non-fuel revenue will be allocated to this administrative fee. The "Administrative Threshold Amount" will be subject to an increase each calendar year based on the CPI Adjustment. It is important to note that the fee is calculated on Non-Fuel Gross Sales, so fuel sales are excluded from the calculation.
The electronic funds transfer requirement means franchisees must have systems in place to accurately track Non-Fuel Gross Sales and make timely payments. Franchisees should budget for this ongoing expense and understand how the CPI adjustment may impact the fee over time. Paying via electronic funds transfer is a fairly standard practice in franchising, ensuring secure and trackable transactions.
Understanding the nuances of what constitutes Non-Fuel Gross Sales is crucial for accurate calculation and payment of this fee. Franchisees should carefully review the definitions provided in the FDD and seek clarification from Petro Stopping Center on any ambiguous items to avoid potential discrepancies or disputes.