What is the due date 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, the Administrative Fee is due monthly, specifically 10 business days following the Report Day, and must be paid via electronic funds transfer. This fee is calculated as 0.3% of all Non-Fuel Gross Sales up to and including $600,000 per month, referred to as the "Administrative Threshold Amount."
For a prospective Petro Stopping Center franchisee, this means that they need to be prepared to calculate and remit this fee each month based on their sales figures. The "Report Day" is not defined in the provided documentation, so franchisees should clarify with Petro Stopping Center what constitutes the Report Day to ensure timely payments. Missing the payment deadline could result in late fees, as outlined elsewhere in the FDD.
It's also important to note that the Administrative Threshold Amount of $600,000 is subject to an annual increase based on the CPI Adjustment. This means that the amount of sales subject to the 0.3% fee could change each year, requiring franchisees to stay informed of these adjustments. Franchisees should also understand what constitutes "Non-Fuel Gross Sales," as defined in the FDD, to accurately calculate the fee.
Overall, the Administrative Fee represents an ongoing monthly expense for Petro Stopping Center franchisees, and understanding the calculation, due date, and potential adjustments is crucial for managing their finances effectively. Franchisees should maintain accurate sales records and communicate with Petro Stopping Center to clarify any uncertainties regarding the fee or its payment.