Can Petro Stopping Center debit my bank account for Royalties and other amounts due?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require you to give us authorization, in a form that we designate, to initiate debit entries or credit correction entries to the Petro Center's bank operating account (the "Account") for payments of Royalties and all other amounts due under this Agreement, including any applicable interest charges.
If so, you must make the funds available in the Account for withdrawal by electronic transfer no later than the Payment Day.
The amount actually transferred from the Account to pay Royalties will be based on the Petro Center's Gross Sales reported to us on the Report Day.
If you have not reported the Petro Center's Gross Sales to us for any reporting period, we may transfer from the Account an amount calculated in accordance with our reasonable estimate of the Petro Center's Gross Sales during any such reporting period.
If we determine at any time that you have under-reported Gross Sales or underpaid Royalties or other amounts due to us, we will be authorized to immediately initiate a transfer from the Account in the appropriate amount in accordance with the foregoing procedures, including applicable interest and late charges.
Any overpayment will be credited to the Account through a credit, effective as of the first Report Day after you and we determine that such credit is due.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, you may be required to authorize them to debit your bank account for royalties and other amounts due under the franchise agreement. Specifically, Petro Stopping Center may require you to authorize them to initiate debit entries to the Petro Center's bank operating account for payments of royalties and all other amounts due, including interest charges. If required, you must ensure funds are available for electronic transfer on the Payment Day. The amount transferred will be based on the Gross Sales you report to Petro Stopping Center on the Report Day. If you fail to report Gross Sales, Petro Stopping Center may transfer an amount based on their reasonable estimate of your Gross Sales.
Furthermore, if Petro Stopping Center determines that you have under-reported Gross Sales or underpaid royalties or other amounts, they are authorized to immediately initiate a transfer from your account for the appropriate amount, including applicable interest and late charges. Any overpayment will be credited back to your account on the first Report Day after you and Petro Stopping Center determine the credit is due.
This electronic funds transfer (EFT) requirement is a fairly standard practice in franchising, as it ensures timely and accurate payments. However, it's crucial to maintain accurate sales records and report them promptly to avoid estimated withdrawals. Franchisees should also carefully review their bank statements to ensure that all debits are correct and reconcile with their sales reports.