How must the ongoing royalty fees be paid by a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ees in the future based on a number of factors, including: (x) the number of prior extensions requested; (y) the number of franchised locations you have; and (z) situation-specific factors. The Opening Extension Fee is payable if and when we grant an opening extension.
OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Ongoing Royalty Fees | You must pay us (i) 4.5% of all Non-QSR Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month (the "Threshold Amount") and 2% of all Non QSR Gross Sales in excess of the Threshold Amount; (ii) 2% of all QSR Gross Sales; and (iii) $.007 on each gallon of Motor Fuel sold at your Petro Center1 | Payable monthly 10 business days following the Report Day by electronic funds transfer | Each calendar year the Threshold Amount will be increased by using the CPI Adjustment. |
Source: Item 6 — OTHER FEES (FDD pages 27–32)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees must pay ongoing royalty fees monthly via electronic funds transfer. The due date is 10 business days following the Report Day. The royalty fees are calculated as follows: 4.5% of Non-QSR Gross Sales up to $600,000 per month, then 2% of Non-QSR Gross Sales exceeding that amount. Additionally, franchisees pay 2% of all QSR Gross Sales and $.007 on each gallon of motor fuel sold. The $600,000 threshold is subject to annual CPI adjustments.
'Gross Sales' includes total charges for all products and services, whether sold at the Petro Center or any other location, net of rebates or refunds, but excludes sales, use, fuel, or similar taxes collected and transmitted to authorities. For activities where the franchisee receives a commission (e.g., lottery tickets, gift cards), only the commission is included in Gross Sales, provided it is reasonable and customary.
Notably, Petro Stopping Center franchisees are not required to pay royalties on gross sales from a food concept operated under a separate franchise or license agreement with Petro Stopping Center or its affiliates, if that separate agreement already requires royalty payments to them. This avoids double-dipping on royalty fees for co-branded operations within the Petro Stopping Center. This structure is fairly common in the franchise industry, especially when dealing with multi-concept or co-located franchises.