What is the estimated total initial investment range to open a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer 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 initial investment for the renovation and conversion of an existing travel center into a Petro Stopping Center ranges from $11,395,000 to $52,177,000. This substantial investment covers a variety of expenses, including the initial franchise fee (ranging from $80,000 to $130,000), opening extension fees (from $0 to $120,000), training ($7,000 to $60,000), and opening assistance ($30,000 to $90,000). It also includes significant costs for site improvements and construction (ranging from $10,000,000 to $38,000,000) and equipment, furniture, and fixtures (from $200,000 to $6,512,000).
Prospective franchisees should note that these figures represent a broad range, and the actual initial investment can vary significantly based on factors such as the size and condition of the existing travel center, the scope of renovations required, and local market conditions. The estimate also includes expenses for computer systems ($30,000 to $50,000 plus $140,000 to $400,000 for computer system and software), insurance ($88,000 to $600,000), additional funds for the first three months of operation ($450,000 to $2,500,000), vehicles ($0 to $350,000), inventory ($345,000 to $1,500,000), soft costs like professional fees and permits ($25,000 to $1,000,000), and licenses ($0 to $50,000).
It is important to consider that the FDD also provides a separate estimated initial investment for the ground-up construction of a Petro Center. However, the provided excerpts do not include the total estimated initial investment for ground-up construction. Therefore, potential franchisees should carefully review Item 7 of the FDD and consult with Petro Stopping Center to understand the specific costs associated with either renovating an existing travel center or constructing a new Petro Center from the ground up. Understanding these costs is crucial for making an informed investment decision.
Furthermore, the FDD indicates that certain costs, such as real estate, can vary significantly. For example, real estate leasing costs for 3 months are estimated at $800,000. The cost of purchasing real estate is not included in these estimates. Franchisees should conduct thorough due diligence and seek professional advice to accurately assess all potential costs and financial obligations before committing to a Petro Stopping Center franchise.