By: Lal Aho
It goes without saying that America runs on gasoline and not on public transportation. This is common knowledge. At present, the industry is a multi-billion dollar business and the trend is here to stay for a while. The EV avalanche is yet to arrive and is merely a blimp on the distant horizon much like an oasis in a desert.
Given these factors and considerations, now is the right time to grab a slice of the apple pie for yourself. If you already own a fuel station, the time to deep dive into the expansion mode has arrived. As one of the leading bulk fuel suppliers and beyond, we can help you with your acquisition and are standing by to extend an assistive hand.
Here are three factors you should seriously consider before you embark on your acquisition journey:
Decide between a franchise and an independent
Fuel stations generally fall into two primary categories-- franchise and independent. If you decide to become a franchisee, you will benefit immensely from the franchise’s reputation at a national brand level. The decision to own an independent fuel station just might be a challenge for a new entrepreneur. Initiate a conversation with a brand to learn more about the benefits of going the brand way.
Identify who owns the tanks and the pumps
The most valuable assets of fuel stations are the pumps and the tanks. But it is not a default. You might or might not own either of them. Ensure that your contract specifies this clearly. Hire an attorney to read the fine print in the contract. Find out who owns the tanks and the pumps before buying a gasoline station. If you decide to become a franchisee, your franchiser might be the owner. If you lease the property, your landlord may be the owner of both or either of them. Consider your preferences and decide accordingly.
Check the fuel station’s environmental and violation history
Contamination is a major concern fuel stations should address. A legal complication is sure to cost you in the thousands. It may even force you to shut down your operations for a while. Evaluate the legal requirements of operating a gasoline station in your area and check the results of a site analysis test before making that final commitment. Also ensure that there are no outstanding violations. As one of the leading gasoline suppliers we can facilitate the entire process for you from start to finish.
If you have purchased a fuel station in the past, you are sure to know more about the subject. Please do share your pearls of wisdom in the comment section below.
