Is the initial franchise fee for a Petro Stopping Center refundable?
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 Petro Stopping Center's 2025 Franchise Disclosure Document, the initial franchise fee is not refundable. The standard franchise fee for a Petro Center is $130,000, which must be paid on the Agreement Date. Once paid, Petro Stopping Center considers this fee fully earned and will not refund it.
However, Petro Stopping Center offers a discounted franchise fee for multi-site franchisees. The franchise fee for the second and third franchise agreements is reduced by $25,000, and the fee for the fourth and subsequent agreements is reduced by $50,000. These discounts are contingent upon the franchisee and their affiliates being in compliance with all franchise agreements with Petro Stopping Center and its affiliates.
This non-refundable policy is a standard practice in the franchise industry, as the initial fee compensates the franchisor for the initial costs and efforts in granting the franchise. Prospective franchisees should be aware of this policy and carefully consider their decision before entering into a franchise agreement with Petro Stopping Center.