What is the initial franchise fee for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ification of any policy;
- (g) provide that you cannot reduce the policy limits, restrict coverage, cancel or otherwise alter or amend the policies without our prior written consent; and
- (h) contain such other terms and conditions as we may require from time to time.
- 8.4 Evidence of Coverage. Within five (5) days after the Agreement Date, you must forward a copy of the certificate of insurance to us. Before the expiration of the term of each insurance policy, you must furnish us with a copy of each new, renewal or replacement policy you have obtained to extend your coverage, along with evidence of the premium payment.
9. FEES.
9.1 Initial Fees.
- (a) Franchise Fee: You agree to pay us the Franchise Fee in the amount of $130,000 for a Petro Center. The Franchise Fee must be paid to us on the Agreement Date. The Franchise Fee is nonrefundable and is fully earned by us when paid.
- (b) Discounted Fee for Multi-Site Franchisees. The Franchise Fee due and owing under the second and each subsequent Franchise Agreement you or your Affiliates execute with us for a Petro Center shall be discounted as follows:
- (i) The Franchise Fee due and owing under t
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the initial franchise fee for a Petro Center is $130,000. This fee is due on the Agreement Date.
The franchise agreement outlines a discount on the franchise fee for multi-site franchisees. Specifically, the franchise fee for the second and third Petro Center franchise agreements will be reduced by $25,000, bringing the fee to $105,000, provided the franchisee is in compliance with all existing agreements. For the fourth and any subsequent franchise agreements, the fee is further reduced by $50,000, resulting in a fee of $80,000, again contingent upon compliance with all existing franchise agreements.
The initial franchise fee is nonrefundable and is fully earned by Petro Stopping Center upon payment. This is a common practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and brand access. Prospective franchisees should be aware that this fee is separate from other startup costs, such as real estate, construction, and inventory, which can significantly increase the total investment required to open a Petro Stopping Center.