Under what circumstances is the lease review fee paid to Petro Stopping Center refundable?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
w you to open your TA Truck Service Shop after you open the Petro Center, then you must pay $30,000 of the Computer System Installation Fee in connection with the opening of the Petro Center and the remaining $20,000 when the TA Truck Service Shop opens.
LEASE REVIEW FEE
If you seek to lease the Site, you must provide us with a copy of the proposed lease agreement and all related documentation for our review and approval. You must pay for any and all costs and expenses, including reasonable attorneys' fees, we incur for the review or negotiation of the proposed lease documents (including our form of Conditional Assignme
Source: Item 5 — INITIAL FEES (FDD pages 25–27)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the lease review fee is not refundable under any circumstances. The document states that if a franchisee seeks to lease a site, they must provide Petro Stopping Center with the proposed lease agreement for review and approval. The franchisee is responsible for all costs associated with this review, including attorney's fees incurred by Petro Stopping Center. In addition to these costs, a $7,500 leasing review fee is payable at the time of the review.
This non-refundable policy means that even if the lease is not approved or the deal falls through, the franchisee will not receive the $7,500 back. This is an important consideration for prospective franchisees as it represents a sunk cost that must be factored into their initial investment and risk assessment. Franchisees should carefully evaluate potential lease locations and terms before submitting them for review to minimize the risk of losing this fee on a rejected lease.
It is common practice in franchising for certain fees to be non-refundable, as they cover the franchisor's expenses in providing services such as reviewing documents or providing training. However, franchisees should be aware of which fees are non-refundable and understand the implications before entering into a franchise agreement with Petro Stopping Center.