How often must a Petro Stopping Center report and pay royalties?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
s: - (1) $.007 on each gallon of Motor Fuel sold.
- (b) Administrative Fee. An administrative fee ("Administrative Fee") of 0.3% of all Non-Fuel Gross Sales up to, and including, Six Hundred Thousand Dollars ($600,000) per month of Non-Fuel Gross Sales (the "Administrative Threshold Amount").
- On January 1 of each calendar year, the Threshold Amount and Administrative Threshold Amount shall be increased by using the CPI Adjustment. In no event shall the thencurrent Threshold 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 day following the Report Day or such other day as we may designate (the "Payment Day") for the immediately preceding Accounting Period.
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 report their gross sales for the preceding accounting period on the Report Day of each Accounting Period. The Accounting Period is designated in the Manual, and is currently a calendar month.
Franchisees are then required to pay royalties so that Petro Stopping Center receives them on or before the 10th business day following the Report Day, or another day that Petro Stopping Center may designate, for the immediately preceding Accounting Period. This means that royalties are both reported and paid on a monthly basis.
Petro Stopping Center requires that all amounts due be paid via ACH electronic funds transfer, or another method they may specify. Franchisees must authorize Petro Stopping Center to initiate debit entries to the Petro Center's bank operating account for payments of royalties and all other amounts due under the Franchise Agreement. The amount transferred from the account to pay royalties will be based on the Petro Center's gross sales reported to Petro Stopping Center on the Report Day.