What is the due date for the Advertising Fees for 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 fees are payable on the first full calendar month after opening your franchise and continuing on a monthly basis as billed by electronic funds transfer. Currently, the advertising fee is $3,000 per month.
This means that a new Petro Stopping Center franchisee will begin paying the advertising fee the month following their opening. The fee will then be charged monthly via electronic funds transfer. It is important to note that this fee is subject to change, as the FDD states that each calendar year the Monthly Advertising Fee will be increased by using the CPI Adjustment.
Prospective franchisees should be aware of this ongoing monthly expense and factor it into their financial projections. Furthermore, the FDD specifies that the Monthly Advertising Fee will not be less than the then-current Monthly Advertising Fee, meaning that the fee can only increase over time, not decrease. This is a common practice in franchising, as advertising is crucial for brand recognition and attracting customers.