What is the standard deadline for opening a Petro Stopping Center after signing the Franchise Agreement?

ing your Franchise Agreement, weather, the scope and complexity of your construction, construction delays, and financing issues. Additionally, in some jurisdictions (including California) we have seen supply chain and permitting issues delay construction by an additional 12 to 18 months in some circumstances.

You must open the Petro Center within 24 months after signing the Franchise Agreement (the "Opening Deadline"). If you believe that it will take you longer to open the Petro Center, including as a result of the factors listed above, then you may negotiate an extension to the Opening Deadline in connection with the execution of the Franchise Agreement, in accordance with our then-current extension policies. If you need to request an extension to the Opening Deadline after execution of the Franchise Agreement, we may, in our sole discretion, agree to extend your Opening Deadline by providing written confirmation of the extension to you and we may require you to pay an Opening Extension Fee. The amount of the Opening Extension Fee is currently set as follows: (a) If you request and receive an extension at the time of execution of your Franchise Agreement, then the Opening Extension Fee is $60,000 for a 12-month extension, with a $5,000 refund for each full thirty-day period that you open prior to the extended deadline; (b) If you request and receive an extension following execution of the Franchise Agreement, then the Opening Extension Fee is a non-refundable $25,000 for a 12-month extension; and (c) If after obtaining a 12-month extension, you request and receive a further extension, the Opening Extension Fee is $7,500 per month. We reserve the right to increase the amount of Opening Extension Fees in the future based on a number of factors, including: (a) the number of prior extensions requested; (b) the number of franchised locations you have; and (c) situation-specific factors.

If you are converting your operation to a Petro Center, you will convert the operation according to a schedule and plans and specifications upon which Petro Franchise and you agree in writing. If you are building a new facility, your plans and specifications must be approved by Petro Franchise in advance, and construction must be completed within ten months after signing the Franchise Agreement. Before opening for business, you must have obtained all necessary licenses, permits, and approvals, hired and trained personnel, made all leasehold improvements, and purchased inventory.

Advertising and Promotion

Beginning on the first full calendar month after opening your Petro Center, you must pay to us an advertising fee (the "Monthly Advertising Fee") of $3,000 per month. Each calendar year the Monthly Advertising Fee will be increased by using the CPI Adjustment discussed in Item 6 and Section 9.4 of the Franchise Agreement. The Monthly Advertising Fee will never be less than the then-current Monthly Advertising Fee. Petro Centers owned and operated by TA Operating are not required to pay a Monthly Advertising Fee. TA Operating or its Affiliates, however, do contribute funds to marketing efforts in connection with the Petro System.

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Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 44–53)