Can a previous owner of a Petro Stopping Center property be liable for hazardous substances?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You may also be subject to liability under various federal, state and local environmental laws, ordinances and regulations concerning a variety of environmental matters, including the handling, cleanup and/or removal of hazardous substances as an owner and/or operator of a travel center property. Under the laws and regulations relating to hazardous substances, a current or previous owner or operator of real property may be liable for the cost of removal or remediation of hazardous or toxic substances which may include petroleum or petroleum products on, under or in the property. Certain laws typically impose liability whether or not the owner or operator knew of, or was responsible for, the presence of the hazardous or toxic substances. Persons who arrange for the disposal or treatment of hazardous or toxic substances may also be liable for the costs of removal or remediation of those substances at the disposal or treatment facility, regardless of whether that facility is owned or operated by that person.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, a previous owner of real property on which a travel center is located may be held liable for the costs associated with the removal or remediation of hazardous or toxic substances, including petroleum or petroleum products, found on, under, or within the property. This liability can be imposed regardless of whether the owner knew of or was responsible for the presence of these substances.
This means that if a Petro Stopping Center franchisee purchases a property that has pre-existing environmental contamination, they, as the current owner, and previous owners could be responsible for cleanup costs. These costs can be substantial, potentially including the expense of removing contaminated soil, treating groundwater, and monitoring the site to ensure the contamination does not spread. The franchisee may face unexpected financial burdens due to environmental issues caused by prior owners or operators.
This type of liability is common in the franchise industry, especially for businesses dealing with petroleum products or other potentially hazardous materials. Prospective Petro Stopping Center franchisees should conduct thorough environmental due diligence before purchasing or leasing a property. This may include environmental site assessments to identify any existing contamination and to assess the potential risks and liabilities associated with the property. Understanding these risks is crucial for making informed decisions and protecting their investment.
It is important to note that persons who arrange for the disposal or treatment of hazardous or toxic substances may also be liable for the costs of removal or remediation of those substances at the disposal or treatment facility, regardless of whether that facility is owned or operated by that person. This highlights the importance of proper waste management practices and compliance with environmental regulations to avoid potential liabilities.