Gas Station Franchises

Gas station franchises can be a really lucrative company to be in. It does not seem that Americans enjoy affair with gas guzzling cars will be more than anytime quickly!

Even so, most will fail inside the 1st year. Listed under are the major 5 causes why I believe they will fail. With the appropriate preparing, you can keep away from these prevalent errors.

#1 Place, Place, Place

When hunting for a gas station franchise to invest in, you want to guarantee that you will have the highest site visitors location doable. Without having individuals coming to your gas station…you will not be in company for really lengthy!

So some important factors for you to be conscious of (and communicate this with your realtor or company broker).

  • What is the present site visitors counts?
  • What is your present competitors? Is there space for competitors to construct close to you?
  • Stop by the regional preparing commission to figure out if any creating permits have been issued or if any road building is planned?
  • Is the gas station effortlessly accessible from all sides or is it boxed in with a single way in or out?

#2 IS THE Money Seriously FLOWING?

Most individuals who are not in the gas station company, mistakenly assume that the owner is producing a ton of funds off of them every single time they fill up their tank (I am paying how considerably per gallon!!!). But that is incorrect. In reality the owner has really low margins when it comes to gasoline sales. They truly make really small funds.

So how do they make their funds?

With all the other solutions they present, such as:

  • Attached car or truck wash
  • Comfort shop
  • Attached quickly meals restaurants

The mark-up on these extras is normally quite higher and that is exactly where the funds is created. As with any company you will want to confirm the present owners economic statements (you need to confirm…do not blindly think what you study on their economic statements). Make confident that the income and profit margins make sense for that place and business requirements.

#3 Attempting TO DO IT ALL ALONE

Prior to you invest in that gas station, do a small networking with present owners. By networking, you can understand what the present “hot” troubles affecting the business in your location, exactly where to obtain regional suppliers and other factors of interest. Some national organizations to verify out are:

* National Association of Comfort Shops

* The Petroleum Marketers Association of America

#4 WE Want Safety More than Right here!!

The gas station franchise company is a company exactly where everyone desires to steal from you! In all probability the greatest dilemma is drive-offs (exactly where clients fill up with gas but neglect to spend for it and just drive away). You will also face theft from personnel and vendors, so make confident that the house has a fantastic safety method in location. If they never, you will want to appear into the price of acquiring fantastic safety method in location. You will want cameras in important areas, alarms and employee protocols in location (in case of robbery, fire, and so forth).


So several 1st time gas station franchise owners are so busy hunting into the financials that they neglect this piece of it. You will want to make confident that the curent owner has all of the state licenses as nicely as any license to sell liquor, lottery tickets or cigarettes. You will want to obtain out how to transfer and/or qualify for these beneath new ownership. There is normally a price connected with these licenses & permits, so strategy accordingly.


The brand affilation is an crucial aspect of your company. When you invest in the company from the present owner you never necessarily sustain the exact same brand. This is an crucial aspect that will call for investigation on your aspect. What does the present franchise agreement appear like? What are the present franchising charges? You will want to set-up meeting with the Brand/Oil enterprise representatives to make confident that you meet their qualifications. It is a fantastic thought to contain in your sales contract that the present franchise agreement need to be transferable.