What is the Administrative Threshold Amount for the Administrative Fee 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, franchisees must pay an administrative fee of 0.3% of all Non-Fuel Gross Sales up to and including $600,000 per month. This $600,000 figure is referred to as the "Administrative Threshold Amount." This fee is payable monthly, 10 business days following the Report Day, via electronic funds transfer.
Each calendar year, Petro Stopping Center will increase the Administrative Threshold Amount by using the CPI Adjustment. This means that the threshold will likely increase over time based on inflation, potentially allowing franchisees to have higher Non-Fuel Gross Sales before the administrative fee applies to any additional revenue.
For a prospective Petro Stopping Center franchisee, understanding the Administrative Threshold Amount is crucial for financial planning. It determines the point at which the 0.3% administrative fee applies to Non-Fuel Gross Sales. Franchisees should monitor their Non-Fuel Gross Sales and be aware of the CPI adjustments to accurately calculate their monthly administrative fee payments.