What information must a Petro Stopping Center franchisee include in their reviewed financial statements?

According to the 2025 FDD, Petro Stopping Center requires franchisees to submit reviewed financial statements annually. These statements must be prepared by an independent certified public accountant and submitted within 120 days after the end of each calendar year.

The reviewed financial statements for Petro Stopping Center must specifically include an annual profit and loss statement, a statement of cash flows, and a balance sheet for the franchisee's center as of the end of the calendar year. This provides Petro Stopping Center with a comprehensive overview of the financial health and performance of each franchised location.

If the financial statements include businesses other than the franchised Petro Stopping Center, the franchisee must also include consolidating exhibits. These exhibits should clearly separate the operations of the franchised business from any other business activities. This ensures that Petro Stopping Center can accurately assess the performance of its franchised locations independently of any other financial activities the franchisee may be involved in.

This level of financial reporting is typical in franchising, allowing Petro Stopping Center to monitor the financial health of its franchisees, calculate royalties, and ensure compliance with the franchise agreement. Prospective franchisees should be prepared to maintain detailed and accurate financial records and to engage a qualified accountant to prepare the required statements.