Is a Petro Stopping Center franchisee responsible for environmental conditions at the site?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
20.1 Compliance with Laws. You agree, at your sole cost and expense, to comply with all federal, state, county and municipal laws, rules, regulations, ordinances, orders, directives and requirements of all governmental authorities and public officers whether present or future, foreseen or unforeseen, ordinary or extraordinary, or shall involve any governmental change in policy, which may be applicable to the Site, the Petro Center or your operations at the Site (collectively, "Laws"). Your obligations include environmental conditions, including without limitation atmospheric, soil, ground water and surface water conditions, and obligations arising under the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. ("RCRA"), the Comprehensive Environmental Response, Compensation & Liability Act, 42 U.S.C. 9601 et seq. ("CERCLA"), the Water Pollution Control Act, 33 U.S.C. 1251 et seq., the Occupational Safety and Health Act of 1979, 29 U.S.C. 651, et seq., ("OSHA"), the Clean Air Act, 42 U.S.C. 7401 et seq., the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C.11001, et seq., Safe Drinking Water Act, 42 U.S.C. 300f, et seq., together with any amendments thereto, regulations promulgated thereunder and all successor legislation and regulations thereof to any and all of the above (collectively, "Environmental Laws").
You are responsible for curing any violations of Laws, including the Environmental Laws, that occur during the Term. Without limitation, you shall be solely responsible for Remediation of any and all discharges of Contaminants. Notwithstanding the foregoing, in the event you have contributed to, directly or indirectly, or otherwise aggravated, any prior Discharge of Contaminants, you are responsible to the extent of your contribution to, or aggravation of, any prior Discharge of Contaminants. "Discharge" as used herein, means as defined in Environmental Laws, and includes, without limitation, any intentional or unintentional action or omission resulting in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping of a Contaminant. "Contaminant" means as defined in Environmental Laws, and shall include, without limitation, any toxic substance, hazardous substance, hazardous waste, pollution, pollutant, contamination, petroleum, asbestos, lead-based paint, and polychlorinated biphenyls. "Remediation" as used herein, means as defined in Environmental Laws. In the event of a violation of Environmental Laws, including a Discharge of Contaminants, during the Term, you shall immediately notify us.
You shall indemnify, defend with counsel acceptable to us, and hold the Franchisor Indemnified Parties free and harmless from any and all Claims, including but not limited to any remediation and response costs, remediation plan preparation costs, and monitoring and closure costs, based upon or arising out of your failure to comply with this Section 20.1. Your indemnification obligations under this Section 20.1 shall survive the expiration or sooner termination of the Term.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, franchisees are responsible for complying with all applicable laws, including those pertaining to environmental conditions at the site. This encompasses atmospheric, soil, ground water, and surface water conditions. Franchisees must adhere to obligations arising under various environmental regulations such as the Resource Conservation and Recovery Act (RCRA), the Comprehensive Environmental Response, Compensation & Liability Act (CERCLA), the Water Pollution Control Act, the Occupational Safety and Health Act, the Clean Air Act, the Emergency Planning and Community Right to Know Act, and the Safe Drinking Water Act.
The Petro Stopping Center franchisee is responsible for addressing any violations of environmental laws that occur during the term of the agreement, including the remediation of any discharges of contaminants. The franchisee is also responsible for any contribution to, or aggravation of, any prior discharge of contaminants. In the event of a violation, the franchisee must immediately notify Petro Stopping Center.
Furthermore, the franchisee is obligated to indemnify and defend Petro Stopping Center from any claims, including remediation and response costs, arising from their failure to comply with environmental regulations. This indemnification obligation survives the expiration or termination of the franchise agreement. This means that even after the franchise agreement ends, the franchisee may still be liable for environmental issues that occurred during their operation of the Petro Stopping Center.