For Petro Stopping Center, what is the definition of Non-Fuel Gross Sales?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, Non-Fuel Gross Sales are defined as all Gross Sales excluding sales from Motor Fuel Gross Sales. Gross Sales are the total actual gross charges for all Products or Services sold to customers of your Petro Center for cash or credit, whether these sales are made at or from the Petro Center, or any other location; net of rebates or refunds. Any amounts that you collect and transmit to state or local authorities as sales, use, fuel or other similar taxes are excluded from the definition of Gross Sales. In the case where you receive only a commission from a business activity rather than the gross revenues from such activity (e.g., lottery ticket sales, gift card sales, ATMs, CAT branded scale sales and the like), only the commission received by you will be included in Gross Sales provided that such commissions are reasonable and customary. Motor Fuel Gross Sales means all Gross Sales of approved gasoline, fuel used in diesel engines, ethanol and other fuel blends (collectively, "Motor Fuel") sold at your Petro Center.

For a prospective Petro Stopping Center franchisee, understanding this definition is crucial because many fees are calculated based on Non-Fuel Gross Sales. For example, the ongoing royalty fees are calculated as 4.5% of all Non-QSR Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month and 2% of all Non QSR Gross Sales in excess of the Threshold Amount; 2% of all QSR Gross Sales; and $.007 on each gallon of Motor Fuel sold at your Petro Center. The administrative fee is 0.3% of all Non-Fuel Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month.

Therefore, accurately tracking and reporting Non-Fuel Gross Sales is essential for compliance with the franchise agreement and for calculating royalty and other fee obligations to Petro Stopping Center. Franchisees should pay close attention to what constitutes a 'sale' and how commissions are treated, especially for activities like lottery ticket sales or ATM transactions, to ensure accurate reporting. Also, it is important to understand what sales are included and excluded from gross sales, such as sales tax and motor fuel sales.

Furthermore, the distinction between Non-Fuel Gross Sales, Non-QSR Gross Sales, Motor Fuel Gross Sales, and QSR Gross Sales is important because different royalty rates apply to each category. Franchisees need to maintain detailed records to properly allocate revenue among these categories and accurately calculate their royalty payments. The definitions provided in the FDD are the basis for these calculations, and any ambiguity could lead to disputes with the franchisor.