Is there a minimum amount for the Monthly Advertising Fee for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. You are not required to pay any Royalty under the Franchise Agreement, with respect to Gross Sales derived from a food concept that you operate at the Petro Center pursuant to a separate franchise or license agreement with us or our Affiliates, if such separate franchise or license agreement requires payment of royalties to us or our Affiliates. |
| Administrative Fee | You must pay us 0.3% of all Non-Fuel Gross Sales up to and including Six Hundred Thousand Dollars ($600,000) per month (the "Administrative Threshold Amount"). | Payable monthly 10 business days following the Report Day by electronic funds transfer | Each calendar year the Administrative Threshold Amount will be increased by using the CPI Adjustment. |
| Advertising Fees | Currently $3,000 per month | Payable on the first full calendar month after opening your franchise and continuing on a monthly basis |
Source: Item 6 — OTHER FEES (FDD pages 27–32)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the Monthly Advertising Fee is currently $3,000 per month. This fee is payable on the first full calendar month after opening the franchise and continues monthly as billed by electronic funds transfer.
Importantly, the FDD states that each calendar year, the Monthly Advertising Fee will be increased by using the CPI Adjustment. Furthermore, the FDD explicitly states that "In no event will the Monthly Advertising Fee be less than the then-current Monthly Advertising Fee." This clause ensures that the advertising fee will not decrease, even if the CPI adjustment were to be negative in a given year.
For a prospective Petro Stopping Center franchisee, this means budgeting at least $3,000 per month for advertising, with the understanding that this amount will likely increase over time due to CPI adjustments. This is a standard practice in franchising, where advertising fees are used to promote the brand and support marketing efforts. The 'no decrease' clause provides clarity and protects the franchisor's advertising revenue stream.