Under what circumstances will Petro Stopping Center charge an Opening Extension Fee?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
inancing documents and the negotiation of a subordination agreement. In addition, you must pay us a $7,500 financing review fee for our review of any financing documents. The financing review fee is payable at the time of our review and is not refundable under any circumstance.
OPENING EXTENSION FEE
If we agree to extend the Opening Deadline, we will charge you an opening extension fee (the "Opening Extension Fee") according to our then-current extension policies. 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
Source: Item 5 — INITIAL FEES (FDD pages 25–27)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, an Opening Extension Fee is charged if the franchisee needs more time to open their location beyond the initially agreed-upon deadline. The specific amount of this fee varies depending on when the extension is requested and the length of the extension.
If a prospective Petro Stopping Center franchisee requests an extension at the time of signing the Franchise Agreement, the fee is $60,000 for a 12-month extension. However, the franchisee can receive a $5,000 refund for each full thirty-day period that they open prior to the extended deadline. If the extension is requested after the Franchise Agreement is already in effect, the fee is a non-refundable $25,000 for a 12-month extension. Furthermore, if a franchisee needs an extension beyond the initial 12-month extension, the fee is $7,500 per month for each additional month.
It's important to note that Petro Stopping Center retains the right to increase these Opening Extension Fees in the future. This increase can be based on factors such as the number of prior extensions requested, the number of franchised locations the franchisee has, and other situation-specific factors. The Opening Extension Fee is payable when Petro Stopping Center grants the opening extension. This policy highlights the importance of careful planning and realistic timelines when opening a Petro Stopping Center franchise, as extension fees can add significantly to the initial investment.