Is Petro Stopping Center required to spend Monthly Advertising Fees in the year they are collected?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We typically spend all Monthly Advertising Fees in the year we collect them. Nonetheless, we may roll over excess amounts to subsequent years.
For the year ending December 31, 2024, we spent 15.6% of the Monthly Advertising Fees on production costs, 63.4% of the Monthly Advertising Fees on media placement, 7% of the Monthly Advertising Fees on administrative expenses, 1.6% of the Monthly Advertising Fees on research and 12.4% of the Monthly Advertising Fees on other expenses, including tradeshow events, marketing programs, and public relations agencies.
Approximately, 0.4% of Monthly Advertising Fees identified above were used to solicit new franchise sales by way of participation in industry trade shows and advertisements in trade publications. Upon written request by you, we will provide you with an unaudited report on the use of Monthly Advertising Fees during the prior fiscal year.
We do not have any advertising cooperatives or advertising councils.
We are not required to spend any amount on advertising in your Protected Area.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 44–53)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Franchise typically spends all Monthly Advertising Fees in the year they are collected. However, Petro Stopping Center retains the option to roll over excess amounts to subsequent years.
The FDD specifies how the Monthly Advertising Fees were spent for the year ending December 31, 2024. 15.6% went to production costs, 63.4% to media placement, 7% to administrative expenses, 1.6% to research, and 12.4% to other expenses, including tradeshow events, marketing programs, and public relations agencies. Additionally, approximately 0.4% of the Monthly Advertising Fees were allocated to solicit new franchise sales through industry trade shows and advertisements in trade publications.
Prospective franchisees should note that Petro Stopping Center will provide an unaudited report on the use of Monthly Advertising Fees from the prior fiscal year upon written request. This provides a degree of transparency regarding how the advertising fees are utilized to support the Petro brand. Franchisees should also be aware that Petro Stopping Center is not required to spend any amount on advertising in a franchisee's Protected Area.