What was the benefit obligation at January 1, 2023 for Petro Stopping Center's pension plans?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
rther information see Notes 5, 17, 24, and 27. The litigation and claims provision presented in the table above includes the latest estimate for the remaining costs associated with the Gulf of America oil spill. The amounts payable may differ from the amount provided and the timing of payments is uncertain.
19. Pensions and other post-employment benefits
The Company has a number of pension plans covering most employees. Pension benefits may be provided through defined contribution plans or defined benefit plans. For defined contribution plans, retirement benefits are determined by the value of funds arising from contributions paid in respect of each employee. For defined benefit plans, retirement benefits are based on such factors as an employee's pensionable salary and length of service. Defined benefit plans may be funded or unfunded. The assets of funded plans are generally held in separately administered trusts.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, information regarding the specific benefit obligation as of January 1, 2023, for Petro Stopping Center's pension plans is not explicitly detailed. However, the document does mention that the company has a number of pension plans covering most employees, which may be provided through defined contribution or defined benefit plans. For defined benefit plans, retirement benefits are based on factors such as an employee's pensionable salary and length of service. These plans may be funded or unfunded, with the assets of funded plans generally held in separately administered trusts.
The FDD notes that the obligation and cost of providing pension and other post-employment benefits is assessed annually using the projected unit credit method, with a valuation of the principal plans carried out annually. The date of the most recent actuarial valuation was December 31, 2024. During 2024, contributions of $9 million (2023 $8 million and 2022 $8 million) were made to the pension plans, all of which were discretionary.
As a prospective franchisee, it would be prudent to ask the franchisor for more specific details regarding the pension plans, including the benefit obligations at specific dates like January 1, 2023. Understanding the financial health and obligations of these plans can provide a clearer picture of the company's overall financial stability and potential long-term liabilities. This information is crucial for making an informed investment decision.