What is the standard franchise fee for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ation or material modification of any policy;
- (g) provide that you cannot reduce the policy limits, restrict coverage, cancel or otherwise alter or amend the policies without our prior written consent; and
- (h) contain such other terms and conditions as we may require from time to time.
- 8.4 Evidence of Coverage. Within five (5) days after the Agreement Date, you must forward a copy of the certificate of insurance to us. Before the expiration of the term of each insurance policy, you must furnish us with a copy of each new, renewal or replacement policy you have obtained to extend your coverage, along with evidence of the premium payment.
9. FEES.
9.1 Initial Fees.
- (a) Franchise Fee: You agree to pay us the Franchise Fee in the amount of $130,000 for a Petro Center. The Franchise Fee must be paid to us on the Agreement Date. The Franchise Fee is nonrefundable and is fully earned by us when paid.
- (b) Discounted Fee for Multi-Site Franchisees. The Franchise Fee due and owing under the second and each subsequent Franchise Agreement you or your Affiliates execute with us for a Petro Center shall be discounted as follows:
- (i) The Franchise Fee due and owing under t
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the standard franchise fee is $130,000 for a Petro Center. This fee is payable on the Agreement Date. The franchise fee is nonrefundable and is fully earned by Petro Stopping Center when paid.
Petro Stopping Center offers a discounted franchise fee for multi-site franchisees. The franchise fee for the second and third franchise agreements is reduced by $25,000 from the then-current franchise fee. For the fourth and each subsequent franchise agreement, the fee is reduced by $50,000 from the then-current franchise fee. These discounts are subject to the franchisee and their affiliates being in compliance with all franchise agreements with Petro Stopping Center and its affiliates.
In the franchise industry, it is common for franchisors to charge an initial franchise fee to grant franchisees the right to use the brand's system and intellectual property. These fees typically range from a few thousand dollars to hundreds of thousands of dollars, depending on the brand and industry. The franchise fee covers the franchisor's initial costs of setting up the franchisee, including training, site selection assistance, and providing operations manuals. The non-refundable nature of the fee is also standard practice, as it compensates the franchisor for their time and resources expended in evaluating and onboarding the franchisee.