How is private equity valued for Petro Stopping Center's pension plans?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, private equity held by pension plans is valued at fair value. This valuation is determined using the most recent third-party net asset valuation. Alternatively, revenue or earnings-based valuations may be used, which generally involve significant unobservable inputs.

This means that the value of private equity investments within Petro Stopping Center's pension plans is not based on readily available market prices. Instead, it relies on appraisals and estimations, which can be subjective and may not always reflect the true market value. The use of 'unobservable inputs' suggests that these valuations may involve assumptions and projections that are not easily verifiable.

For a prospective franchisee, this information is relevant in understanding the financial management and investment strategies of Petro Stopping Center, particularly concerning its pension obligations. While this does not directly impact the franchisee's day-to-day operations, it provides insight into the overall financial health and stability of the franchisor. Franchisees may want to inquire further about the performance and risk management of these pension plans to assess any potential long-term financial implications for the franchise system.