For Petro Stopping Center, what is included in Gross Sales?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Sales means the total actual gross charges for all Products or Services sold to customers of your Petro Center for cash or credit, whether these sales are made at or from the Petro Center (including by way of clarification anywhere on the Site), or any other location; net of rebates or refunds. Any amounts that you collect and transmit to state or local authorities as sales, use, fuel or other similar taxes are excluded from the definition of Gross Sales. In the case where you receive only a commission from a business activity rather than the gross revenues from such activity (e.g., lottery ticket sales, gift card sales, ATMs, CAT branded scale sales and the like), only the commission received by you will be included in Gross Sales provided that such commissions are reasonable and customary.
Source: Item 6 — OTHER FEES (FDD pages 27–32)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Gross Sales are defined as the total actual gross charges for all Products or Services sold to customers of your Petro Center for cash or credit, whether these sales are made at or from the Petro Center (including anywhere on the Site), or any other location; net of rebates or refunds. However, any amounts that you collect and transmit to state or local authorities as sales, use, fuel or other similar taxes are excluded from the definition of Gross Sales.
For business activities where the franchisee receives a commission rather than gross revenues, such as lottery ticket sales, gift card sales, ATMs, and CAT branded scale sales, only the commission received by the franchisee will be included in Gross Sales, provided that such commissions are reasonable and customary.
Petro Stopping Center franchisees need to understand this definition thoroughly because several fees, including ongoing royalty fees and administrative fees, are calculated based on Gross Sales or subsets thereof (Non-QSR Gross Sales, QSR Gross Sales, Non-Fuel Gross Sales, and Motor Fuel Gross Sales). Accurate tracking and reporting of Gross Sales are crucial for compliance with the franchise agreement and to avoid potential audits and associated costs. Underreporting Gross Sales by more than 2% can lead to the franchisee being responsible for the cost of an audit.