Is a Petro Stopping Center franchisee responsible for remediation of discharges of contaminants?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Petro Stopping Center Franchise Disclosure Document, franchisees are responsible for addressing violations of environmental laws that occur during their franchise term, including the remediation of any contaminant discharges. A "Discharge" includes any action that results in the release of a contaminant, and a "Contaminant" includes any toxic or hazardous substance as defined by Environmental Laws.
Specifically, the franchisee is solely responsible for the remediation of any and all discharges of contaminants. However, if the franchisee contributed to or aggravated a prior discharge of contaminants, their responsibility is limited to the extent of their contribution or aggravation. Franchisees must immediately notify Petro Stopping Center in the event of any violation of Environmental Laws, including a Discharge of Contaminants.
Furthermore, the Petro Stopping Center 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 these environmental obligations. This indemnification obligation survives the expiration or termination of the franchise agreement, meaning the franchisee's responsibility for environmental issues can extend beyond the term of the franchise.