What is the interest rate on late payments owed to Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts which you owe us, including but not limited to all amounts due under this Agreement or under any other agreement between us or our Affiliates and you, will bear interest automatically and without notice from us, after their due date at the annual rate of eighteen 18% or the highest contract rate of interest permitted by law, whichever is less.
You acknowledge that we do not agree to accept any payments after they are due nor commit to extend credit to, or otherwise finance your operation of, the Petro Center.
Your failure to pay all amounts when due constitutes grounds for termination of this Agreement.
- 9.12 Application of Payments.
Notwithstanding any designation you might make, we have sole discretion to apply any of your payments to any of your past due indebtedness to us, including interest.
- 9.13 Payment Offsets.
We may setoff from any amounts that we may owe you any amount that you owe to us, or our Affiliates, for any reason whatsoever, including without
limitation, Royalties, Monthly Advertising Fees, and late payment interest, amounts owed to us or our Affiliates for purchases of Products or Services, or for any other reason.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, any amounts owed to Petro Stopping Center, including amounts due under the Franchise Agreement or any other agreement with Petro Stopping Center or its affiliates, will incur interest from the due date. The annual interest rate is 18%, or the highest contract rate permitted by law, whichever is less.
This means that if a franchisee fails to pay royalties, advertising fees, or any other amounts owed to Petro Stopping Center on time, they will be charged interest on the outstanding balance. The interest will accrue automatically without notice from Petro Stopping Center. The rate is set at 18% annually but will be adjusted downward if local laws prescribe a lower maximum contract rate.
Petro Stopping Center emphasizes that it is not obligated to accept late payments or extend credit to franchisees. Failure to pay amounts when due constitutes grounds for termination of the Franchise Agreement. Petro Stopping Center has sole discretion to apply payments to any past due indebtedness, including interest, regardless of any designation the franchisee might make. Petro Stopping Center can also offset any amounts it owes the franchisee against any amount the franchisee owes to Petro Stopping Center or its affiliates, including royalties, monthly advertising fees, and late payment interest.