FranchiseVerdict
Petro Stopping Centers logo
FV-01936·AVOIDExcellent81

Petro Stopping Centers

OtherFranchising since 2008Website
Investment
$12.4M
98th pct Other
Avg revenue
50th pct Other
Royalty
Units
77
71st pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $12.4M including a $140K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 82/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • 46 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Petro Franchise Systems LLC
Parent company
TravelCenters of America Inc.
Incorporated in
Delaware
HQ
24601 Center Ridge Road, Westlake, Ohio 44145-5634
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$79.4B
vs $77.3B prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Petro Stopping Centers unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
FDD reports $491K–$2.7M

Unlevered ROIC · per unit

1%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$14.0M
Payback
1603 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate travel centers and truck stops offering fuel (diesel, gasoline, propane), quick-service restaurants (QSR), convenience retail, and ancillary services (maintenance, showers, parking). Revenue streams include fuel sales (subject to per-gallon royalties), food service (2% royalty), and non-QSR retail (4.5% royalty on sales up to $600K/month).

CEO
Jason Nordin
Founded
2008
FDD year
2026
States available
14

Item 7 · what it costs

The Vitals

Total investment
$12.4M
All-in to open one unit
Liquid capital
$491K – $2.7M
Cash you must have on hand
Franchise fee
$140K
Royalty
(i) 4.5% of Non-QSR Gross Sales up to $600,000/month and …
Ad fund
$3,000
Total fee load
4.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
77
Opened
8
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
59
Corporate units in the system
% franchised
23%
vs corporate-owned
Net growth (yr3)
+63.6%
Net unit change last year
3-yr CAGR
+63.6%
Compounded over last 3 years
2024
18±0
Franchised units
2025
11
Franchised units
2026
11
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 15 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 15 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

82
Risk · 0-100
AVOID82 / 100

Petro Stopping Centers presents extreme risk due to going concern status, extensive litigation exposure (Deepwater Horizon, environmental, antitrust), missing financial disclosure, and unclear whether unit growth reflects genuine demand or distressed expansion.

Score breakdown · what drove the 82 / 100 rating

  1. 01HIGHGoing Concern status indicates potential insolvency despite 63.6% unit growth (suggests acquisition/restructuring, not organic health)
  2. 02HIGHMassive litigation exposure: Deepwater Horizon (hundreds of lawsuits), UST environmental liability, MTBE contamination, antitrust/price manipulation, and False Claims Act settlement create ongoing financial and reputational risk
  3. 03MINORNo Average Revenue or Net Income disclosure in FDD prevents validation of $12.4M investment viability or ROI projections
  4. 04MINORComplex tiered royalty structure (4.5%/2% on QSR + per-gallon fuel fees) creates revenue leakage; fuel margins are notoriously thin in this sector
  5. 05HIGHHigh unit growth (63.6% YoY) during going concern status suggests distressed franchisee recruitment rather than system strength
  6. 06MINOREnvironmental liability exposure (USTs, MTBE) creates potential franchisee indemnification risk if parent company defaults

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographic Area
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
46
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ohio

Item 11

Training & Operations

Classroom training
120 hrs
On-the-job training
418 hrs
POS system
Proprietary Systems
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

17 numbers

Locked
(360) 902-••••
WA
(401) 462-••••
RI
(713) 982-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Petro Stopping Centers · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above