What environmental regulations is Aplus subject to?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
o ensure proper compliance with regulations. We are not fully insured for any claims that may arise from these various agencies and there can be no assurance that any claims arising from these activities would not have an adverse, material effect on our consolidated financial statements.
Environmental Remediation
We are subject to various federal, state and local environmental laws and make financial expenditures in order to comply with regulations governing underground storage tanks adopted by federal, state and local regulatory agencies. In particular, at the federal level, the Resource Conservation and Recovery Act of 1976, as amended, requires the EPA to establish a comprehensive regulatory program for the detection, prevention and cleanup of leaking underground storage tanks (e.g. overfills, spills and underground storage tank releases).
Federal and state regulations require us to provide and maintain evidence that we are taking financial responsibility for corrective action and compensating third parties in the event of a release from our underground storage tank systems and terminals. In ord
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus is subject to various federal, state, and local environmental laws. Aplus makes financial expenditures to comply with regulations governing underground storage tanks. At the federal level, the Resource Conservation and Recovery Act of 1976, as amended, requires the EPA to establish a regulatory program for the detection, prevention, and cleanup of leaking underground storage tanks, including overfills, spills, and underground storage tank releases.
Federal and state regulations also require Aplus to provide and maintain evidence of financial responsibility for corrective action and compensating third parties in the event of a release from their underground storage tank systems and terminals. To meet these requirements, Aplus has historically obtained private insurance in the states where it operates.
In 2023, Aplus's coverage was $10 million per occurrence and in the aggregate, and their sites continue to be covered by these policies. This indicates that franchisees can expect Aplus to maintain insurance coverage for environmental liabilities, but they should also be aware of the potential for environmental issues and the associated compliance costs.