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What is the estimated total initial investment range for the ground-up construction of a Petro Stopping Center?

Petro_Stopping_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

professional fees that you may incur before you open your Petro Center for business. Your actual costs may vary depending on the degree to which you utilize outside professional advisors.

YOUR ESTIMATED INITIAL INVESTMENT FOR THE GROUND-UP CONSTRUCTION OF A PETRO CENTER1

Type of Expenditure TA Center 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
Training 3 $7,000 – $60,000 As Arranged As Incurred Transportation Lines, Hotel, Restaurants, Employee Wages
Opening Assistance 4 $30,000 - $90,000 As Arranged As Incurred Petro Franchise
Computer System $30,000 - Lump Sum As Incurred Petro Franchise
Installation Fee $50,000
Leasing $0 – Lump Sum As Incurred Petro Franchise
Review Fee $7,500
Financing Review Fee $0 – $7,500 Lump Sum As Incurred Petro Franchise
Real Estate Leasing $0 – Installment As Arranged Landlord
Costs for 3 Months 5 $800,000
Site Improvements and $10,000,000 - As Arranged As Arranged Landlord or Contractors
Construction 6 $38,000,000
Equipment, Furniture & $200,000 - As Arranged As Arranged Vendors
Fixtures 7 $6,512,000
Computer System and $140,000 – As Incurred As Arranged TA Operating and Vendors
Software $400,000
Insurance 8 $88,000 – $600,000 As Incurred As Arranged Insurance Company
Additional Funds – 3 $450,000 – As Incurred As Arranged Vendors, Employees
Months 9 $2,500,000
Vehicles 10 $0 - $350,000 As Incurred As Arranged Vendors
Inventory $345,000 - $1,500,000 As Incurred As Arranged Vendors
Soft Costs, Professional Fees, Permits and Bonds11 $25,000 - $1,000,0

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 total initial investment for the ground-up construction of a Petro Center ranges from $11,395,000 to $52,177,000. This substantial investment covers a variety of expenses, including the initial franchise fee, opening extension fees, training, opening assistance, computer systems, real estate costs, site improvements and construction, equipment, furniture and fixtures, computer systems and software, insurance, additional funds, vehicles, inventory, soft costs, professional fees, permits and bonds, and licenses.

The initial franchise fee ranges from $80,000 to $130,000, payable in a lump sum upon signing the Franchise Agreement. Site improvements and construction costs are estimated to be between $10,000,000 and $38,000,000, while equipment, furniture, and fixtures can range from $200,000 to $6,512,000. Additional significant costs include $450,000 to $2,500,000 for additional funds to cover the first three months of operation and $345,000 to $1,500,000 for inventory.

Prospective franchisees should note that these costs can vary significantly. For instance, opening extension fees can range from $0 to $120,000, and soft costs, professional fees, permits, and bonds can range from $25,000 to $1,000,000. The cost for real estate leasing for 3 months is listed at $800,000. Insurance costs are estimated between $88,000 and $600,000. These fluctuations depend on factors such as location, the scope of operations, and the degree to which outside professional advisors are utilized. The cost of vehicles ranges from $0 to $350,000, depending on whether the franchisee already owns a fully equipped repair truck.

Given the wide range of potential costs, Petro Stopping Center advises potential franchisees to carefully review these figures with a business advisor before making a decision. The FDD also notes that fees paid to Petro Franchise or its affiliates are non-refundable, while the refundability of fees paid to third parties depends on the specific contracts in place. Understanding these initial investment requirements is crucial for anyone considering opening a new Petro Stopping Center.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.