What was the total amount of decommissioning provisions for Petro Stopping Center as of January 1, 2024?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| Decommissioning | Environmental | Litigation and | Emissions | Otherc | Total | |
|---|---|---|---|---|---|---|
| claims | ||||||
| At January 1, 2024 | 6,148 | 379 | 427 | 2,073 | 395 | 9,422 |
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the total amount of decommissioning provisions as of January 1, 2024, was $6,148. This figure represents the company's estimated obligations for the future removal and disposal of assets or infrastructure at the end of their useful life.
In addition to decommissioning costs, Petro Stopping Center also had provisions for environmental obligations ($379), litigation and claims ($427), emissions ($2,073), and other expenses ($395). The total of all these provisions amounted to $9,422 as of January 1, 2024. These figures provide insight into the potential long-term financial liabilities that Petro Stopping Center faces due to its operations and regulatory requirements.
For a prospective franchisee, understanding these decommissioning and other environmental provisions is crucial. While these are obligations of the company and not directly the franchisee, they reflect the regulatory landscape and potential future costs associated with the industry. Franchisees should consider how such environmental regulations and potential liabilities might indirectly affect their business operations and the overall financial health of the Petro Stopping Center brand.