Travelcenters Of America Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,067,000 - $34,403,000
Franchise Fee
$80,000
Total US Locations
59
Business Summary
TA Express Center operates limited service travel centers located near highways, primarily serving commercial truck operators and the general motoring public. These centers typically feature truck parking, a 9,000 square foot building, diesel and gasoline fueling lanes, car parking, multiple quick-service restaurants, and showers. TA Express Centers may also include truck maintenance and repair services if approved by the franchisor.
Corporate History
TA Franchise Systems LLC, the franchisor, was originally formed as a Delaware corporation on July 13, 1982, and later converted to a Delaware limited liability company on January 31, 2007. TA Franchise Systems LLC has been offering franchises for limited service TA Express Centers since 2018. The company also offers franchises for full service TA Centers since 1990 under a separate disclosure document. TA Franchise Systems LLC became a wholly owned subsidiary of BP Products North America Inc. on May 15, 2023, following an Agreement and Plan of Merger. BP Products North America Inc. is an indirect subsidiary of BP p.l.c. TA Franchise Systems LLC operates its businesses under names such as TravelCenters of America, TravelCenters, TA, and TA Express. Its affiliate, TA Operating LLC, owns trade names and intellectual property used by franchisees and also operates 167 TA Centers, 13 TA Express Centers, and 66 Petro Centers as of December 31, 2024.
Financial Overview
Investment Range
$1,067,000 - $34,403,000
Franchise Fee (Low)
$80,000
Franchise Fee (High)
$130,000
Royalty %
4.5%
Equipment Costs (Low)
$200,000
Equipment Costs (High)
$5,448,000
Working Capital
$425,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
BP Corporation North America Inc., the ultimate parent company that guarantees TA Franchise Systems LLC's performance, has audited consolidated financial statements for the years ended December 31, 2024, 2023, and 2022. The independent auditors issued an unqualified opinion, confirming that the financial statements present fairly in all material respects. The company reported a profit of $3,271 million in 2024, $4,959 million in 2023, and $10,441 million in 2022. Total equity was $38,568 million in 2024 and $45,792 million in 2023. Cash and cash equivalents were $1,986 million in 2024 and $2,271 million in 2023. The notes discuss significant judgments and estimates regarding oil and gas price assumptions, discount rates, and the impact of climate change on asset valuations and decommissioning provisions, but these are part of standard accounting practices for a large energy company and do not indicate a specific financial distress or going concern issue in the audit opinion. Overall, BP Corporation North America Inc. appears to be in a strong financial position with substantial assets and consistent profits.
Financing Details
TA Franchise Systems LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any franchisee's note, lease, or other financial obligations. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
59
Franchised Units
46
Corporate Units
13
Avg Square Footage
9,000
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
11
Litigation Summary
TA Franchise Systems LLC is currently involved in one pending lawsuit initiated by a former franchisee in June 2024, alleging fraudulent inducement, breach of contract, and violations of various acts concerning a TA Express Center in Georgia. The former franchisee seeks damages exceeding $300,000,000. While some claims were dismissed in March 2025, others, including fraud and breach of contract, remain, and the case is proceeding to discovery. Regarding its parent and affiliates, TA Franchise Systems LLC is subject to several ongoing legal matters: An injunction from 2016 in California concerning alleged violations related to underground storage tanks and hazardous materials at BP West Coast Products' gasoline stations. A 2007 consent order from the U.S. Commodity Futures Trading Commission against BP Products North America Inc. for alleged propane price manipulation. The extensive Deepwater Horizon oil spill litigation from 2010. While many claims were settled, as of January 2025, there are approximately 38 pending lawsuits alleging personal injury, and two class action complaints are pending in Mexican Federal District Courts seeking damages for alleged environmental, health, and economic harm in Mexico. A 2013 case by the U.S. Federal Energy Regulatory Commission against BP America Inc. and affiliates, alleging natural gas market manipulation in 2008. Oral arguments were heard in early 2022, and a decision was expected later that year. Additionally, TA Franchise Systems LLC affiliates, including BP p.l.c., BP America Inc., and BP Products North America Inc., are co-defendants in approximately 30 climate change lawsuits in various state and federal courts, asserting claims for impacts allegedly caused by and/or relating to climate change. These lawsuits are still in early stages. Six coastal parishes and the State of Louisiana have filed over 40 lawsuits against various oil and gas companies, including TA Franchise Systems LLC subsidiaries, for coastal erosion damages from historical oil and gas operations. While some cases were settled, others remain in early litigation stages.
Bankruptcy History
TA Franchise Systems LLC has no bankruptcy history to disclose. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, TA Franchise Systems LLC franchisees must have fully complied with their franchise agreement during the initial or any prior renewal term and must not be in default. They need to satisfy all financial obligations to TA Franchise Systems LLC and its affiliates. Franchisees are also required to sign TA Franchise Systems LLC's then-current franchise agreement and any other necessary agreements, which may have different terms regarding economics, operations, and protected territory. They must also meet current qualifications and training requirements for the TA Express System and its standards. A general release of claims against TA Franchise Systems LLC and its affiliates must also be signed. Franchisees must provide written notice of their intent to renew at least 180 days before the current term expires. TA Franchise Systems LLC will then respond within 90 days, outlining any required deficiencies to be corrected, such as remodeling, expansion, or other improvements to meet current specifications. A renewal fee of $20,000 is also required, along with reimbursement for any services and expenses TA Franchise Systems LLC incurs related to the renewal.
Training & Support Program
Franchisor Assistance
TA Franchise Systems LLC provides franchisees with pre-opening assistance, including site selection guidelines and evaluations, initial Development Plans, and a set of the Manuals. They also provide lists of Approved Suppliers and Products, review advertising materials, and offer pre-opening training. Assistance for Computer System and Proprietary Systems installation is also provided. After opening, TA Franchise Systems LLC advises on operations, provides updates to the Manuals, and offers an 'opening team' for up to two weeks. The franchisor negotiates fuel pricing discounts with fleet customers, which franchisees are required to honor, ensuring prices are competitive with or lower than company-owned sites in the same state. They also provide ongoing training and may charge fees for additional courses or conferences. TA Franchise Systems LLC maintains a formal training staff to conduct these programs.
Initial Training Hours
224
Training Location
TA Training Center Lodi, OH, and/or other Company Locations and the Franchisee's site
Ongoing Support
After opening, TA Franchise Systems LLC provides ongoing advice regarding the TA Express Center's operation, furnishing updated standards, specifications, and operating procedures. This includes guidance on purchasing, product types, Approved Suppliers, Preferred Vendors, advertising, and marketing programs. An 'opening team' is available for up to two weeks. Franchisees also receive amended or revised versions of the Manuals. TA Franchise Systems LLC can suggest retail pricing and establish maximum, minimum, or other pricing requirements for products and services. The franchisor negotiates and requires franchisees to honor fuel pricing discounts for nationwide and regional fleet customers, matching or offering lower prices than company-owned sites in the same state. Franchisees may be required to attend periodic training courses or conferences and may be charged fees for these. TA Franchise Systems LLC requires the use of designated Computer Systems, including proprietary rewards, shop, and shower systems, with specifications that may be modified, potentially incurring costs for new hardware or software. They also provide assistance with computer system installation and charge an IT Security Fee for access to certain security software and technology. Franchisees must maintain Payment Card Industry (PCI) Data Security Standard (DSS) compliance and inform the franchisor of security incidents or breaches within a specified timeframe. The franchisor may also require Capital Modifications to the TA Express Center, including changes to Marks, facade, structure, operating assets, and services, with specific compliance deadlines.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Staffing Notes
TA Franchise Systems LLC requires that each TA Express Center has a designated Managing Owner who holds at least a 20% equity interest, is approved by the franchisor, and completes all required training. The Managing Owner must dedicate full-time effort to managing and supervising the employees and the TA Express Center, and have the authority to make all business decisions. If a franchisee operates multiple TA Express Centers, only one Managing Owner is needed for all locations. Additionally, the TA Express Center must be overseen daily by managers as specified in TA Franchise Systems LLC's Manuals, who must also complete training and be approved by the franchisor. Any changes in managers require immediate notification and training for new managers. All employees with access to confidential information, including managers, are required to sign a Confidentiality Agreement. The franchisor does not exercise authority over the hiring, firing, discipline, compensation, or supervision of franchisee employees.