How must a Petro Stopping Center franchisee pay amounts due to the franchisor?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
o us for any reporting period, we may transfer from the Account an amount calculated in accordance with our reasonable estimate of the Petro Center's Gross Sales during any such reporting period. If we determine at any time that you have under-reported Gross Sales or underpaid Royalties or other amounts due to us, we will be authorized to immediately initiate a transfer from the Account in the appropriate amount in accordance with the foregoing procedures, including applicable interest and late charges. Any overpayment will be credited to the Account through a credit, effective as of the first Report Day after you and we determine that such credit is due.
- 9.11 Interest on Late Payments. All amounts which you owe us, including but not limited to all amounts due under this Agreement or under any other agreement between us or our Affiliates and you, will bear interest automatically and without notice from us, after their due date at the annual rate of eighteen 18% or the highest contract rate of interest permitted by law, whichever is less. You acknowledge that we do not agree to accept any payments after they are due nor commit to extend credit to, or otherwise finance your operation of, the Petro Center. Your failure to pay all amounts when due constitutes grounds for termination of this Agreement.
- 9.12 Application of Payments. Notwithstanding any designation you might make, we have sole discretion to apply any of your payments to any of your past due indebtedness to us, including interest.
- 9.13 Payment Offsets. We may setoff from any amounts that we may owe you any amount that you owe to us, or our Affiliates, for any reason whatsoever, including without limitation, Royalties, Monthly Advertising Fees, and late payment interest, amounts owed to us or our Affiliates for purchases of Products or Services, or for any other reason. Payments that we make to you may be reduced, in our discretion, by amounts that you owe to us or our Affiliates from time to time. In particular, we may retain (or direct to our Affiliates) any amounts that we have received for your account as a credit and payment against any amounts that you may owe to us, or our Affiliates, at any time. We may do so without notice to you at any time. However, you do not have the right to offset payments owed to us for amounts purportedly due to you from us.
9.14 Credit.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center FDD, franchisees are obligated to pay all amounts due to Petro Stopping Center, including royalties and other fees, and failure to do so can result in the termination of the franchise agreement. Petro Stopping Center can charge interest on late payments at an annual rate of 18% or the highest contract rate permitted by law, whichever is less. Petro Stopping Center does not commit to extending credit to franchisees. Petro Stopping Center has sole discretion to apply payments to any past due indebtedness, including interest, regardless of any designation the franchisee might make.
Petro Stopping Center has the right to transfer funds from the franchisee's account if the franchisee has not reported gross sales for any reporting period. This transfer will be calculated based on Petro Stopping Center's reasonable estimate of the Petro Center's gross sales during that period. If Petro Stopping Center determines that a franchisee has under-reported gross sales or underpaid royalties or other amounts, they are authorized to immediately initiate a transfer from the franchisee's account for the appropriate amount, including applicable interest and late charges. Any overpayment will be credited to the franchisee's account.
Petro Stopping Center may set off any amounts owed to the franchisee by amounts the franchisee owes to them or their affiliates, including royalties, monthly advertising fees, late payment interest, or amounts owed for purchases of products or services. Payments made to the franchisee may be reduced by amounts the franchisee owes to Petro Stopping Center or its affiliates. Petro Stopping Center may retain any amounts received for the franchisee's account as a credit and payment against any amounts the franchisee may owe at any time, without notice.