How must the advertising fee be paid by a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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; and (iii) $.007 on each gallon of Motor Fuel sold at your Petro Center1 | Payable monthly 10 business days following the Report Day by electronic funds transfer | Each calendar year the Threshold Amount will be increased by using the CPI Adjustment. You are not required to pay any Royalty under the Franchise Agreement, with respect to Gross Sales derived from a food concept that you operate at the Petro Center pursuant to a separate franchise or license agreement with us or our Affiliates, if such separate franchise or license agreement requires payment of royalties to us or our Affiliates. |
| Administrative Fee | You must pay us 0.3% of all Non-Fuel Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month (the "Administrative Threshold Amount"). | Payable monthly 10 business days following the Report Day by electronic funds transfer | Each calendar year the Administrative Threshold Amount will be increased by using the CPI Adjustment. |
| Advertising Fees | Cur |
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 advertising fee is currently $3,000 per month. This fee is payable on the first full calendar month after opening the franchise and continues monthly.
The payment is to be made via electronic funds transfer, which is a common method for ongoing franchise fees, ensuring timely and consistent payments. The FDD also notes that each calendar year, the Monthly Advertising Fee will be increased by using the CPI Adjustment.
It is important to note that the advertising fee will never be less than the then-current Monthly Advertising Fee. This means that while the fee can increase with the CPI adjustment, it will not decrease, providing Petro Stopping Center with a stable advertising revenue stream. This predictable monthly advertising expense should be factored into the franchisee's financial planning.