To whom is the initial franchise fee paid when opening a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ding by way of clarification anywhere on the Site), for which you are required to make royalty payments to a third party.
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT FOR THE RENOVATION AND CONVERSION OF AN EXISTING TRAVEL CENTER INTO A PETRO CENTER1
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|
| Initial Franchise Fee | $80,000 – $130,000 | Lump Sum | At signing of the Franchise Agreement | Petro Franchise |
| Opening Extension Fees2 | $0 – $120,000 | Lump Sum | At signing of the Franchise Agreement or upon subsequent agreement as to an extension | Petro Franchise |
| Training3 | $7,000 – $35,000 | As Arranged | As Incurred | Transportation Lines, Hotel, Restaurants, Employee Wages |
| Opening Assistance4 | $10,000 - $30,000 | As Arranged | As Incurred | Petr |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–37)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $80,000 to $130,000, is paid to Petro Franchise. This fee is due at the signing of the Franchise Agreement and is paid as a lump sum.
In addition to the initial franchise fee, Petro Stopping Center franchisees may also encounter other fees payable to Petro Franchise. These include opening extension fees, which can range from $0 to $120,000, and are due at the signing of the Franchise Agreement or upon subsequent agreement for an extension. Furthermore, franchisees will need to budget for opening assistance, with costs ranging from $10,000 to $30,000, as well as computer system costs, leasing review fees, and financing review fees, all payable to Petro Franchise as incurred.
Understanding these payment obligations is crucial for prospective Petro Stopping Center franchisees as they evaluate the financial requirements and cash flow projections for their new business. Knowing exactly who receives each payment and when it is due allows for more accurate financial planning and budgeting. Franchisees should also note that fees paid to Petro Franchise are non-refundable, as stated in Item 7 of the FDD.