How is the franchise fee discounted for multi-site Petro Stopping Center franchisees?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ification of any policy;
- (g) provide that you cannot reduce the policy limits, restrict coverage, cancel or otherwise alter or amend the policies without our prior written consent; and
- (h) contain such other terms and conditions as we may require from time to time.
- 8.4 Evidence of Coverage. Within five (5) days after the Agreement Date, you must forward a copy of the certificate of insurance to us. Before the expiration of the term of each insurance policy, you must furnish us with a copy of each new, renewal or replacement policy you have obtained to extend your coverage, along with evidence of the premium payment.
9. FEES.
9.1 Initial Fees.
- (a) Franchise Fee: You agree to pay us the Franchise Fee in the amount of $130,000 for a Petro Center. The Franchise Fee must be paid to us on the Agreement Date. The Franchise Fee is nonrefundable and is fully earned by us when paid.
- (b) Discounted Fee for Multi-Site Franchisees. The Franchise Fee due and owing under the second and each subsequent Franchise Agreement you or your Affiliates execute with us for a Petro Center shall be discounted as follows:
- (i) The Franchise Fee due and owing under t
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the franchise fee is $130,000 for a Petro Center. However, Petro Stopping Center offers a discounted franchise fee for multi-site franchisees. Specifically, the franchise fee for the second and third Petro Stopping Center franchise agreements executed by the franchisee or their affiliates will be reduced by $25,000 from the then-current franchise fee.
For the fourth and each subsequent Petro Stopping Center franchise agreement, the franchise fee is further reduced by $50,000 from the then-current franchise fee. These discounts are contingent upon the franchisee and their affiliates being in compliance with all existing franchise agreements with Petro Stopping Center and its affiliates.
This multi-unit discount is a common practice in franchising to incentivize franchisees to expand their operations within the same brand. For a prospective Petro Stopping Center franchisee, this represents a significant cost savings for those looking to develop multiple locations, provided they maintain compliance with their existing agreements. It is important to note that the discount applies to the franchise fee only and not to any other fees or ongoing royalties.