When does the Monthly Advertising Fee payment obligation begin for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Amount or Administrative Threshold Amount be decreased, including upon a renewal under Section 17 of this Agreement or otherwise in connection with a successor Franchise Agreement..
- 9.3 Timing. On the day we designate (the "Report Day") of each Accounting Period, you must report the amount of your Gross Sales for the preceding Accounting Period. "Accounting Period" is that period we designate in the Manual (currently a calendar month Accounting Period). You must pay us the Royalty so that we receive it on or before the 10th business
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees must begin paying the Monthly Advertising Fee starting on the first full calendar month after the Opening Date. The initial Monthly Advertising Fee is Three Thousand Dollars ($3,000) per month.
It's important to note that this fee is subject to change. Specifically, the FDD states that on January 1 of each calendar year, the Monthly Advertising Fee will be increased based on the CPI Adjustment. However, the agreement also stipulates that the Monthly Advertising Fee will never be less than the then-current Monthly Advertising Fee, even upon renewal of the franchise agreement.
This means that a franchisee's advertising costs can increase over time due to inflation, but they will not decrease. Franchisees should factor in potential increases to the Monthly Advertising Fee when projecting their operating expenses. This fee is in addition to other fees such as the Royalty fee and IT Security Fee, which also begin the first full calendar month after the opening date.