What was the cost of owned land and land improvements for Petro Stopping Center as of January 1, 2024?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ated with investments in subsidiaries and equity-accounted entities | 660 | 661 |
The majority of the unused US state tax losses have no fixed expiry date.
Substantially all of the deductible temporary differences have no expiry date.
| Impact of previously unrecognized deferred tax or write-down of deferred tax assets on tax charge | 2024 | 2023 | 2022 |
|---|---|---|---|
| Current tax benefit relating to the utilization of previously unrecognized deferred tax assets | 71 | 138 | 232 |
| Deferred tax benefit arising from the reversal of a previous write-down of deferred tax assets |
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the cost of owned land and land improvements as of January 1, 2024, was $1,032 million. This figure represents the company's investment in land and any improvements made to that land at the beginning of the fiscal year. It's important to note that this value reflects the historical cost of these assets and does not necessarily represent their current market value.
For a prospective franchisee, understanding the scale of Petro Stopping Center's existing property, plant, and equipment (PP&E) can provide insight into the capital-intensive nature of the business. The large investment in land and improvements suggests that Petro Stopping Center operates significant facilities and infrastructure. This can be both a positive and a negative for franchisees; it indicates a well-established brand with substantial assets, but it also highlights the potential for high initial investment costs if franchisees are required to purchase or lease land.
It is also important to consider how depreciation affects these assets over time. While the initial cost of land and improvements is significant, these assets are subject to depreciation, which reduces their book value on the balance sheet. The FDD also provides information on accumulated depreciation, which can give a clearer picture of the net book value of these assets. Franchisees should inquire about the company's policies on property maintenance and upgrades, as these can impact the long-term value and usability of the land and improvements.
Finally, prospective franchisees should investigate whether they will be responsible for any portion of these land and improvement costs, either directly or indirectly, through lease payments or other fees. Understanding the financial obligations related to property is crucial for assessing the overall profitability and risk of investing in a Petro Stopping Center franchise.