What is the estimated cost range for site improvements and construction for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ding by way of clarification anywhere on the Site), for which you are required to make royalty payments to a third party.
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT FOR THE RENOVATION AND CONVERSION OF AN EXISTING TRAVEL CENTER INTO A PETRO CENTER1
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid | |-------------------------------------|-------------------------|-------------------------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------| | Initial Franchise Fee | $80,000 – $130,000 | Lump Sum | At signing of the Franchise Agreement | Petro Franchise | | Opening Extension Fees2 | $0 – $120,000 | Lump Sum | At signing of the Franchise Agreement or upon subsequent agreement as to an extension | Petro Franchise | | Training3 | $7,000 – $35,000 | As Arranged | As Incurred | Transportation Lines, Hotel, Restaurants, Employee Wages | | Opening Assistance4 | $10,000 - $30,000 | As Arranged | As Incurred | Petro Franchise | | Computer System | $30,000 - | Lump Sum | As Incurred | Petro Franchise | | Installation fee | $50,000 | | | | | Leasing Review Fee | $0 – $7,500 | Lump Sum | As Incurred | Petro Franchise | | Financing Review Fee | $0 – $7,500 | Lump Sum | As Incurred | Petro Franchise | | Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid | | Real Estate Leasing | $0 – | Installment | As Arranged | Landlord | | Costs for 3 Months5 | $800,000 | | | | | Site Improvements and | $390,000 - | As Arranged | As Arranged | Landlord or | | Construction6 | $17,000,000 | | | Contractors | | Equipment, Furniture | $200,000 - | As Arranged | As Arranged | Vendors | | & Fixtures7 | $3,419,000 | | | | | Computer System and Software | $140,000 – $400,000 | As Incurred | As Arranged | TA Operating and Vendors | | 8 | $88,000 – | As Incurred | As Arranged | Insurance Company | | Insurance | $600,000 | | | | | Additional Funds – 3 9 Months | $450,000 – $2,500,000 | As Incurred | As Arranged | Vendors, Employees | | Vehicles10 | $0 - $350,000 | As Incurred | As Arranged | Vendors | | Inventory | $0 - $800,000 | As Incurred | As Arranged | Vendors | | Soft Costs, Professional Fees, Permits and Bonds11 | $25,000 - $350,000 | As Incurred | As Arranged | Professional Consultants and Vendors | | Licenses | $0 - $35,000 | As Incurred | As Arranged | Vendors and Governmental Entities | | TOTAL | $1,420,000 - $26,634,000 | | | | 1The estimated costs in this table relate to the renovation and conversion of an existing truck stop or travel center into a branded Petro Center. These estimates do not include the costs of groundup construction or the costs of razing and rebuilding structures.
2 Opening Extension Fees. We anticipate that the high end of this fee estimate relates to development in jurisdictions, such as California, where permitting, supply chain, and construction delays require you to seek a significant extension to the Opening Deadline. Additional information regarding these Extension Fees are set forth in Items 5 and 11 of this FDD.
3 Training. Your key management personnel and Managing Owner must attend training programs relating to the Petro System and Petro System Standards. Initially, Petro Franchise will make training available for up to 10 employees of yours. You must pay for the expenses for the cost of travel, room, board and wages of participating employees who attend training.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–37)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the estimated cost for site improvements and construction varies significantly depending on whether you are renovating an existing travel center or constructing a new one. For the renovation and conversion of an existing travel center into a Petro Stopping Center, the estimated cost for site improvements and construction ranges from $390,000 to $17,000,000. This includes expenses related to sewer, electrical, water, storm water, parking, striping, concrete, landscaping, grading, and excavation.
For the ground-up construction of a new Petro Stopping Center, the estimated cost for site improvements and construction is substantially higher, ranging from $10,000,000 to $38,000,000. These costs also cover similar site improvement aspects like sewer, electrical, water, and parking, but account for the more extensive work involved in building a new facility from the ground up.
The actual costs for site improvements and construction can vary significantly based on the project's location, the geographic area, local building codes, and weather conditions. These factors can influence the complexity and cost of the construction or renovation work required. Prospective franchisees should carefully consider these variables and conduct thorough due diligence to estimate the potential costs accurately for their specific location and project scope.
It is important to note that these costs are payable to either the landlord or contractors, depending on the specific arrangements made. Franchisees should consult with business advisors and carefully review all cost estimates to make informed decisions about their investment.