If Petro Stopping Center appoints a manager, is there a fee associated with this?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| 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 the 2025 FDD, if a Petro Stopping Center is not being managed by a trained manager, Petro Stopping Center has the right to appoint a manager to operate the Petro Center. In this case, Petro Stopping Center may charge a reasonable management fee.
This means that as a franchisee, you are responsible for ensuring your Petro Stopping Center is managed by a trained manager. If you fail to do so, Petro Stopping Center can step in and appoint a manager themselves.
However, this comes at a cost. Petro Stopping Center is entitled to charge a "reasonable management fee" for this service. The FDD does not specify the exact amount or how this fee is calculated, but it is important to note that this is a potential expense if you are unable to manage the location yourself or hire a qualified manager. It would be prudent to discuss with Petro Stopping Center what constitutes a 'trained manager' and what factors go into determining a 'reasonable management fee'.