How must I pay amounts due to Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
$100) per month. On January 1 of each calendar year the IT Security Fee shall be increased by using the CPI Adjustment. In no event shall the IT Security Fee be less than the then-current IT Security Fee, including upon a renewal under Section 17 of this Agreement or otherwise in connection with a successor Franchise Agreement. In exchange for payment of the IT Security Fee, you will be granted access to certain software and data security technology that we provide to you. Notwithstanding the foregoing, we may required to pay additional amounts to us or third parties in connection with Computer Systems (which may include other data security measures not covered by the IT Security Fee).
- 9.10 Electronic Funds Transfer. You must pay any amounts due us by ACH electronic funds transfer (or such other method as we may specify from time to time) on the due date. You must comply with the procedures we specify in our Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method. On the Report Day designated in the Manuals, you must report to us by electronic means or in written form, as we direct in the Manuals, the Petro Center's true and correct Gross Sales for the immediately preceding Accounting Period, and such other information we require. We may require you to give us authorization, in a form that we designate, to initiate debit entries or credit correction entries to the Petro Center's bank operating account (the "Account") for payments of Royalties and all other amounts due under this Agreement, including any applicable interest charges. If so, you must make the funds available in the Account for withdrawal by electronic transfer no later than the Payment Day. The amount actually transferred from the Account to pay Royalties will be based on the Petro Center's Gross Sales reported to us on the Report Day. If you have not reported the Petro Center's Gross Sales to us for any reporting period, we may transfer from the Account an amount calculated in accordance with our reasonable estimate of the Petro Center's Gross Sales during any such reporting period. If we determine at any time that you have under-reported Gross Sales or underpaid Royalties or other amounts due to us, we will be authorized to immediately initiate a transfer from the Account in the appropriate amount in accordance with the foregoing procedures, including applicable interest and late charges. Any overpayment will be credited to the Account through a credit, effective as of the first Report Day after you and we determine that such credit is due.
- 9.11 Interest on Late Payments. 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.
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 are required to make payments via ACH electronic funds transfer, or by another method specified by Petro Stopping Center. Franchisees must comply with procedures outlined in the manuals and complete necessary documentation to facilitate this payment method.
On the designated Report Day, franchisees must report their Petro Center's gross sales for the preceding accounting period electronically or in writing, as directed in the manuals, along with any other required information. Petro Stopping Center may also require franchisees to authorize debit entries from the Petro Center's bank operating account for royalties and other amounts due under the agreement, including interest charges. Funds must be available for electronic transfer by the Payment Day. If a franchisee fails to report gross sales, Petro Stopping Center may estimate the sales and transfer an appropriate amount from the account.
If Petro Stopping Center determines that a franchisee has under-reported gross sales or underpaid royalties, they are authorized to immediately initiate a transfer from the franchisee's account for the underpaid amount, including interest and late charges. Overpayments will be credited back to the account. All overdue amounts will incur interest at a rate of 18% annually, or the highest contract rate permitted by law, with Petro Stopping Center having the sole discretion to apply payments to any past due debts, including interest. Petro Stopping Center can also offset any amounts they owe to the franchisee by amounts the franchisee owes to them or their affiliates.