What is the maximum deductible allowed for insurance policies maintained by a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
rom TA Operating. TA Operating is the sole approved supplier of the Proprietary Systems. The Proprietary Systems are sold to you at TA Operating's actual cost. All other Computer Systems and software must be purchased directly from third-party vendors, as set forth in Item 11.
Insurance
You must obtain and maintain at your expense such insurance policies (which are primary as to any other existing, valid, enforceable or collectible insurance) protecting you, Petro Franchise (and its Affiliates) and the respective officers, directors, partners and employees against any loss, liability, or expense arising or occurring upon or in connection with the Petro Center as Petro Franchise may require under or pursuant to the Manuals, or otherwise in writing, for its own and your protection. Upon execution of the Franchise Agreement, you must furnish to Petro Franchise for approval a Certificate of Insurance showing compliance with your insurance requirements. The certificate must state that the policy or policies must not be cancelled or materially altered without at least 30 days prior written notice to Petro Franchise and reflect proof of payment of premiums. Certificates of Insurance must also be provided to Petro Franchise during the term of the Franchise Agreement, upon the renewal of any underlying insurance policy or upon request by Petro Franchise. Within 30 days after the execution of the Franchise Agreement (or any renewal agreement), and at any time upon request by Petro Franchise, you must deliver to Petro Franchise a copy of each required insurance policy. Petro Franchise and any of our Affiliates that we designate must be named as an additional insured on all required policies. Petro Franchise may modify the minimum insuranc
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Petro Stopping Center franchisees are required to maintain various insurance policies with specific coverage amounts. The FDD specifies that no deductible for these policies may be greater than $500,000. This limitation on the deductible amount is a risk mitigation measure for both the franchisee and Petro Franchise (and its Affiliates), ensuring that significant claims are adequately covered by insurance rather than becoming a direct financial burden on the franchisee.
This requirement means that a Petro Stopping Center franchisee will need to negotiate insurance policies that adhere to this deductible limit. While a lower deductible might seem preferable, it typically results in higher premium costs. The $500,000 maximum deductible represents a balance between managing premium expenses and ensuring adequate coverage for potential liabilities. Franchisees should carefully evaluate their risk tolerance and financial capacity when selecting insurance policies to comply with Petro Stopping Center's requirements.
It is also important to note that Petro Franchise has the right to modify the minimum insurance requirements, including the deductible limits, and will notify franchisees of any changes in writing. This flexibility allows Petro Stopping Center to adapt to changing market conditions, legal requirements, or identified risks. Therefore, franchisees must stay informed of any updates to the insurance requirements to remain in compliance with the Franchise Agreement. Failing to maintain the required insurance coverage could result in a breach of the agreement and potential penalties.