Under what circumstances does the Financing Review Fee apply to a Petro Stopping Center franchisee?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
e, which must be executed by you and your lessor). In addition, you must pay us a $7,500 leasing review fee for our review of the leasing documents. The lease review fee is payable at the time of our review and is not refundable under any circumstance.
FINANCING REVIEW FEE
If at any time before the acquisition of the Site, or after, you or your affiliates propose to obtain any financing for the Site, the franchise for the Petro Center, or the Operating Assets are used to secure your financing, then the form of any loan agreement with, or mortgage in favor of, any lender and any related documents must be approved by us before you sign them. You must pay for any and all costs and expenses, including reasonable attorneys' fees, we incur for the review or negotiation of the
Source: Item 5 — INITIAL FEES (FDD pages 25–27)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, a Financing Review Fee of $7,500 is required if a franchisee seeks financing for the site. This fee applies whether the financing is obtained before or after the site acquisition. Specifically, if the franchisee or their affiliates propose to obtain any financing for the site, the Petro Stopping Center franchise itself, or if the operating assets are used to secure financing, the franchisor must approve the loan agreement, mortgage, and related documents before the franchisee signs them.
In addition to the $7,500 Financing Review Fee, the franchisee is responsible for covering all costs and expenses incurred by Petro Stopping Center for reviewing or negotiating the financing documents. These costs include reasonable attorney's fees and the negotiation of a subordination agreement. The Financing Review Fee is payable at the time of the review and is non-refundable under any circumstances.
This requirement ensures that Petro Stopping Center maintains control over the financial arrangements of its franchisees, likely to protect the brand and ensure financial stability across the franchise system. Franchisees should factor this fee and the potential for additional legal and negotiation costs into their financing plans. It is common practice in franchising for franchisors to have approval over financial arrangements to safeguard their brand and the financial health of the overall system.