There is a steady demand for fuel in the United States, making gas stations an ideal business to franchise. Gas is the primary source of energy for gas station for sale in Ontario. Driving to work and transporting things across the country are both essential. Petrol stations are a $250 billion-a-year business enterprise! More than 120,000 petrol stations can be found in Canada. About 80 percent have an on-site convenience shop. This is a significant deal… Take advantage of the opportunity now.
Many legal considerations must be considered when deciding whether to buy or franchise a gas station, and your business lawyer can assist you in this process. As a business and financial opportunity, purchasing a gas station in New York or New Jersey provides several contracts, legal and business due to diligence considerations.
A potential buyer must take into account and examine the following considerations while making a purchase:
Is the Gas Station a “Franchised” or “Independent” Business?
“Independent” and “franchised” gas stations for saleare the two most common types of gas stations. Gas stations that are franchised are owned and operated by a national supplier such as Exxon or BP. Fuel sold at independent stations is not supported by any national provider and is instead purchased from various regional vendors. ‘Unbranded’ fuel
For a “franchised” station to benefit from the national brand’s recognizable name, trademarks, trade design, and canopy, the station’s owners must be franchisees and sign a franchise agreement. A corporate purchaser must evaluate the advantages and cons of both franchised and independent radio stations.
A “franchised gas station” has several issues to examine and discuss with your lawyer, such as the following:
The conditions of the franchise agreement and whether or not the franchisor will allow you to purchase the station;
- Rules and regulations governing the sale of gasoline
- Fuel sales rebates that you may or may not receive;
- Disputes over pump and tank ownership and maintenance.
If so, what kind of convenience store will it be?
Selling fuel is the primary function of a gas station, of course. Is what draws customers to your establishment. Gas stations make most of their money by selling other goods, which the general public is unaware of. Customers go to convenience stores to buy sugary treats like candy, drinks, and cigarettes. Due to the increasing rarity of standalone gas stations without a store, it’s becoming increasingly difficult to find one.
Whether or if the seller owns the pumps and tanks is an important question.
Station pumps and fuel tanks are two of the most crucial assets that will directly impact your business’s daily operations and profits. Only the national franchiser (for franchised stations) or property owner (for unlicensed stations) owns gas pumps and tanks at most gas stations (where the gas station is located on the leased property).
It’s essential to think about contamination when you buy a gas station as a buyer. Even if you buy the gas station (especially if you discover any environmental contamination), cleanup costs can be prohibitive, and the station’s future operations and profitability may be severely impacted. An “environmental contingency provision” in your purchase agreement and a Phase I environmental site evaluation must be considered to purchase a station. “The importance of an environmental site assessment” deals with these concerns in great length in my paper. As a potential buyer, I strongly recommend reading this essay.
Some of the things to consider while purchasing a gas station are as follows:
- Results of an environmental examination of the gas station property, including a sampling of the underground property, if necessary;
- Tanks that must be double-lined for safety reasons;
- Laws governing gas stations in different states;
- The current owner may have been involved in lingering environmental litigation.
- Be aware of the dangers of investing in a gas station.