If Petro Stopping Center appoints a manager, how is the management fee determined?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
other representative may appoint a manager to operate the Petro Center if the Petro Center is not being managed by a trained manager. Pending appointment, we may appoint a manager and charge a reasonable management fee.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 66–78)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, if a franchisee does not have a trained manager operating the Petro Center, Petro Stopping Center or their representative has the option to appoint one. If Petro Stopping Center appoints a manager, they may charge a 'reasonable management fee.'
For a prospective franchisee, this means that if they are unable to manage the Petro Stopping Center with a trained manager, they risk having Petro Stopping Center step in and appoint a manager, which will incur an additional, potentially unexpected, expense. The FDD does not define what constitutes a 'reasonable' fee, leaving it open to interpretation and negotiation.
It is important for a potential franchisee to discuss with Petro Stopping Center what factors go into determining this management fee. Understanding the criteria used to assess the fee will help a franchisee anticipate potential costs and ensure they have a clear understanding of the financial implications should Petro Stopping Center need to appoint a manager.