What was the interest expense on lease liabilities for Petro Stopping Center in 2024?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Interest and other income | |||
| Interest income from | |||
| Financial assets measured at amortized cost | 2,732 | 2,623 | 1,185 |
| Financial assets measured at fair value through profit or loss | — | 1 | — |
| Other income | 145 | 206 | 694 |
| 2,877 | 2,830 | 1,879 | |
| Currency exchange (gains) losses charged to the income statementa | (95) | (21) | (122) |
| Expenditure on research and development | 71 | 76 | 75 |
| Costs relating to the Gulf of America oil spill (pre-interest and tax)b | 51 | 84 | 84 |
| Finance costs | |||
| Interest expense on lease liabilities | 247 | 182 | 99 |
| Interest expense on other liabilities measured at amortized costc | 2,405 | 1,852 | 1,255 |
| Capitalized at 4.94% (2023 4.88% and 2022 3.56%)d | (84) | (210) | (270) |
| Unwinding of discount on provisions | 273 | 244 | 178 |
| Unwinding of discount on other payables measured at amortized cost | 497 | 448 | 453 |
| 3,338 | 2,516 | 1,715 |
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 interest expense on lease liabilities in 2024 was $247. This figure represents the cost incurred by Petro Stopping Center for the use of leased assets during that year. Lease liabilities typically arise from agreements where Petro Stopping Center rents property or equipment rather than owning them outright.
For a prospective franchisee, understanding this expense is crucial as it reflects part of the overall financial obligations of the company. While this specific figure pertains to the company's overall financial performance, franchisees should consider their own potential lease obligations for their specific location, which would include property leases and equipment rentals. These costs can significantly impact a franchisee's profitability.
It's also important to note that interest expenses on lease liabilities can be influenced by factors such as prevailing interest rates and the terms negotiated in the lease agreements. Therefore, franchisees should carefully evaluate lease terms and interest rates when making financial projections for their business. This expense is part of the broader 'Finance costs,' which totaled $3,338 in 2024, indicating the significance of understanding all components of financial obligations.