How is the Administrative Threshold Amount adjusted each calendar year for 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 Threshold Amount is subject to annual adjustments. The Administrative Threshold Amount, which is initially set at $600,000 per month, is the basis for calculating the administrative fee of 0.3% on non-fuel gross sales up to this amount.
Each calendar year, Petro Stopping Center will increase the Administrative Threshold Amount by using the CPI Adjustment. The CPI Adjustment refers to adjustments based on the Consumer Price Index, a common method used to account for inflation and changes in the purchasing power of money over time.
For a prospective Petro Stopping Center franchisee, this means that the level of sales subject to the 0.3% administrative fee may increase annually, potentially allowing for a greater amount of sales to be subject to the lower fee rate as the business grows and inflation occurs. This adjustment helps to ensure that the fee structure remains relevant and fair over the term of the franchise agreement, reflecting changes in economic conditions.