Are Petro Stopping Center's trade and other payables generally interest-free, and what is the exception?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Notwithstanding any designation you might make, we have sole discretion to apply any of your payments to any of your past due indebtedness to us, including interest.
- 9.13 Payment Offsets.
We may setoff from any amounts that we may owe you any amount that you owe to us, or our Affiliates, for any reason whatsoever, including without
limitation, Royalties, Monthly Advertising Fees, and late payment interest, amounts owed to us or our Affiliates for purchases of Products or Services, or for any other reason.
Payments that we make to you may be reduced, in our discretion, by amounts that you owe to us or our Affiliates from time to time.
In particular, we may retain (or direct to our Affiliates) any amounts that we have received for your account as a credit and payment against any amounts that you may owe to us, or our Affiliates, at any time.
We may do so without notice to you at any time.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, trade accounts are expected to be maintained in a current status. However, amounts owed to Petro Stopping Center under any agreement, including the Franchise Agreement, will bear interest automatically after their due date. The annual interest rate is 18% or the highest contract rate permitted by law, whichever is less.
Petro Stopping Center does not commit to extending credit or financing the franchisee's operation. Failure to pay amounts when due constitutes grounds for termination of the Franchise Agreement. Petro Stopping Center has sole discretion to apply payments to past due indebtedness, including interest, regardless of any designation the franchisee might make.
Petro Stopping Center may also set off any amounts owed to the franchisee against any amount the franchisee owes to Petro Stopping Center or its affiliates, including royalties, monthly advertising fees, late payment interest, or amounts owed for purchases of products or services. Payments made to the franchisee may be reduced by amounts the franchisee owes to Petro Stopping Center or its affiliates. Petro Stopping Center may retain amounts received for the franchisee's account as a credit and payment against any amounts the franchisee may owe, without notice.