About TravelCenters of America (TA Express Center) Franchise
TravelCenters of America (TA Express Center) is a franchise system for operating limited-service travel center facilities located next to or near highways.
Franchisees operate smaller-scale truck stops that typically include 40 paved truck parking spaces, a 9,000 square foot building, four diesel lanes with DEF, six gasoline MPDs, 50 paved car parking spaces, one anchor brand quick service restaurant and one complementary QSR, 4 showers, and signage.
The primary customers are commercial truck operators traveling the North American highway system, with a secondary market of the non-commercial motoring public.
TravelCenters of America (TA Express Center) Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $125,000 | One-time payment upon signing |
| Royalty Fee | 4.5% of Non-QSR Gross Sales up to $600,000/month, 2% above; 2% of QSR Gross Sales; $0.007/gallon Motor Fuel of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $3,000 per month (increased annually by CPI Adjustment) | National brand fund |
| Total Investment Range | $1,277,000 – $14,225,000 | Includes build-out, inventory, working capital |
The investment range of $1.3M–$14.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% of Non-QSR Gross Sales up to $600,000/month, 2% above; 2% of QSR Gross Sales; $0.007/gallon Motor Fuel) and marketing fee ($3,000 per month (increased annually by CPI Adjustment)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $125,000 | $125,000 |
| Training | $7,000 | $60,000 |
| Opening Assistance | $20,000 | $45,000 |
| Real Estate Leasing Costs for 3 Months | $0 | $162,000 |
| Site Improvements and Construction | $50,000 | $7,500,000 |
| Equipment, Furniture & Fixtures | $300,000 | $4,448,000 |
| Computers | $130,000 | $235,000 |
| Insurance | $50,000 | $150,000 |
| Additional Funds - 3 Months | $250,000 | $600,000 |
| Vehicles | $0 | $30,000 |
| Inventory | $345,000 | $500,000 |
| Soft Costs, Professional Fees, Permits and Bonds | $0 | $350,000 |
| Licenses | $0 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $35,000 ($75,000 if before first anniversary of Opening Date; $10,000 if among existing Owners) |
| Renewal Fee | $20,000 |
| Audit Fee | Cost of audit if understatement of Gross Sales exceeds 2% |
| Administrative Fee | 0.2% of Non-Fuel Gross Sales up to $600,000/month |
| Late Fees | Lesser of 18% interest per annum or maximum rate allowed by law |
| Approval of Products/Suppliers | Cost of inspection and testing |
| Cost of Enforcement or Defense | All costs including accounting and attorneys' fees if franchisor prevails |
| Training of Managers | Currently no fee; franchisor reserves the right to charge commercially reasonable rates |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 to 28 business days depending on position |
| Classroom Training | 120 hours (for Truck Service Department Manager off-site training at TA Training Center, Lodi, OH) |
| On-the-Job Training | Varies by position: 24-60 hours for department managers; multiple days for hourly employees |
| Training Location | TA Training Center in Lodi, OH (off-site); Company-owned locations; Franchised Premises |
| Additional Training | Franchisor may require periodic training courses or conferences at franchisee's expense. Currently no fees charged for additional training but franchisor reserves the right to charge commercially reasonable rates. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area (negotiated, non-exclusive) |
| Exclusive Territory | No |
| Territory Size | No standard minimum; varies depending on local market conditions and negotiation |
| Description | Franchisor may designate a Protected Area described in Exhibit C of the Franchise Agreement. If no Protected Area is designated, franchisee has no territorial protection. Franchisor reserves extensive rights within the Protected Area including operating Petro Centers, selling products through alternative channels, acquiring competitors, and operating TA Truck Service facilities. Franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels/brands controlled by franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 additional successive terms of 5 years each |
| Renewal Fee | $20,000 plus reimbursement of costs and expenses including reasonable attorneys' fees |
| Renewal Conditions | Must have substantially complied with all provisions during initial or renewal term; not be in default; satisfy all monetary obligations; sign then-current franchise agreement (which may have materially different terms); comply with then-current qualifications and training requirements; sign a general release; give written notice of intent to renew no later than 180 days before expiration; remodel/expand TA Express Center to then-current standards if required. |
| Transfer Fee | $35,000 ($75,000 if before first anniversary of Opening Date; $10,000 if among existing Owners) |
| Transfer Conditions | Transferee must have sufficient business experience, aptitude and financial resources; all amounts due must be paid; transferee must complete training at their expense; transferee must enter into then-current franchise agreement; transferee must upgrade to current standards; transfer fee must be paid; transferor must sign general release and non-competition covenant; material terms must be approved by franchisor. |
| Termination for Cause | Franchisor may terminate without opportunity to cure for non-curable defaults (material misrepresentation, failure to open on time, failure to complete training, failure to comply with Core Programs, abandonment for 5+ days, unauthorized transfer, felony conviction, dishonest conduct, understating Gross Sales, unauthorized assignment, insolvency/bankruptcy). For curable defaults, franchisor must provide 30-day notice to cure. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term and for 2 years after, franchisee and owners (and their spouses and children) may not have any interest in any Competitive Business within the Protected Area, within 75 miles of the Protected Area or Site, within 75 miles of any other TA Center or TA Express Center, or anywhere in the US or Canada in connection with a regional/national chain (e.g., Pilot, Bosselman, Flying J, Love's, Sapp Bros.). Also includes covenant not to solicit employees and covenant not to divert business. Post-term, franchisee may not lease the Site to a national/regional chain competitor for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must designate a Managing Owner with at least 20% equity interest who devotes full time and best efforts to the management and supervision of the TA Express Center. The Managing Owner must be approved by the franchisor, complete all training requirements, and have the power to bind the franchisee. If developing multiple TA Centers or TA Express Centers, only one Managing Owner is needed for the entire operation. Franchisee must also have managers as specified in the Manuals who directly supervise day-to-day operations. |
| Required Suppliers | Franchisees must purchase Proprietary Supplies (employee clothing, uniforms, stationery, forms, advertising materials) from TA Franchise, its Affiliates, or Approved Suppliers. TA Operating is the sole approved supplier of the rewards computer system, proprietary shop system, and proprietary shower system. Franchisees must also purchase shower towels from TA Operating. |
| Supply Restrictions | TA Franchise reserves the right to limit suppliers, restrict sources of materials, fixtures, equipment, furniture, signs, products, goods, and services. Purchases from TA Franchise or affiliates may be at prices exceeding their cost. Certain brands of product (tires, motor oil, coffee) must be offered. Estimated purchases from approved/designated suppliers are 2% to 6% of total purchases. |
| Franchisor Revenue from Suppliers | For fiscal year ended December 31, 2021, TA Franchise had no revenue from required purchases. Affiliate TA Operating's revenue from required purchases by TA franchisees totaled $16,936.36. TA Franchise and affiliates are entitled to all rebates, bonuses and promotional benefits from group/volume purchasing arrangements. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | TA Franchise does not offer direct or indirect financing. TA Franchise does not guarantee any note, lease or obligation. |
TravelCenters of America (TA Express Center) Franchise Earnings — Item 19
TravelCenters of America (TA Express Center) does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
TravelCenters of America (TA Express Center) Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
TravelCenters of America (TA Express Center) System Growth
TravelCenters of America (TA Express Center) currently operates 17 franchised locations and 8 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 4 | 0 | 4 |
| 2020 | 9 | 0 | 13 |
| 2021 | 4 | 0 | 17 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Ernst & Young LLP (implied from Cleveland, Ohio-based auditor) for year ending December 31.
TravelCenters of America (TA Express Center) Franchise — FAQ
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