What financial obligations must a Petro Stopping Center franchisee fulfill before a transfer can be approved?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
16.3 Conditions to Transfer. Prior to the time of any transfer consented to by us:
(d) you must have paid all amounts due us and have submitted all required reports and statements, and made payments to all Approved Suppliers and Preferred Vendors or made arrangements to do so satisfactory to us and them;
(i) you or the transferee must have paid to us a transfer fee of Forty-Five Thousand Dollars ($45,000) to defray expenses we incur in connection with the transfer, including but not limited to, our third party expenses, and the costs of training the transferee (or its Managing Owner) in the Petro System and Petro System Standards.
If the transfer is proposed prior to the first anniversary of the Opening Date, then the transfer fee shall be One Hundred Thirty Thousand Dollars ($130,000).
If the proposed transfer is among your Owners, the transfer fee shall be Ten Thousand Dollars ($10,000);
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, a franchisee must meet specific financial obligations before a transfer of ownership is approved. The franchisee must have paid all amounts due to Petro Stopping Center. This includes submitting all required reports and statements. Additionally, the franchisee must have made payments to all Approved Suppliers and Preferred Vendors, or have arrangements satisfactory to Petro Stopping Center and its suppliers and vendors to do so.
Furthermore, either the franchisee or the transferee is responsible for paying a transfer fee to Petro Stopping Center. The amount of this fee varies depending on the timing and nature of the transfer. If the transfer occurs before the first anniversary of the opening date, the fee is $130,000. If the transfer is among the franchisee's Owners, the fee is $10,000. In all other cases, the transfer fee is $45,000. This fee is intended to cover expenses incurred by Petro Stopping Center in connection with the transfer, including third-party expenses and the costs of training the transferee.
These financial conditions are typical in franchising, as franchisors want to ensure that all outstanding debts are settled and that they are compensated for the administrative and training costs associated with bringing in a new franchisee. Prospective franchisees should carefully consider these costs when planning for a potential transfer of their Petro Stopping Center franchise.