Does Petro Stopping Center guarantee that advertising expenditures will be proportionate to a franchisee's Monthly Advertising Fee payments?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we will endeavor to benefit all Petro Centers, we undertake no obligation to ensure that our advertising expenditures in or affecting any geographic area are proportionate or equivalent to your Monthly Advertising Fee payments to us, or that any Petro Center will benefit directly or in proportion to its Monthly Advertising Fees.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Stopping Center does not guarantee that advertising expenditures will be proportionate or equivalent to a franchisee's Monthly Advertising Fee payments.
Specifically, while Petro Stopping Center aims to maximize brand recognition and patronage of Petro Centers through its advertising activities, it has no obligation to ensure that advertising expenditures in any geographic area are proportionate or equivalent to a franchisee's Monthly Advertising Fee payments. Nor does Petro Stopping Center guarantee that any Petro Center will benefit directly or in proportion to its Monthly Advertising Fees.
This means that a franchisee's $3,000 monthly advertising fee (which is subject to CPI adjustment each January 1) may not directly correlate with the amount of advertising spent in their specific market. Petro Stopping Center retains the discretion to allocate advertising resources as it deems necessary to benefit the entire Petro System. This is a common practice in franchising, where advertising funds are often pooled to support system-wide marketing efforts.