Gas Station Franchise
Pumping up the gas station franchise
If you're curious about owning your own gas station franchise, here's something to make you smile. Oil isn't called 'black gold' for nothing; it's the world's No. 1 commodity and oil's most important derivative, gasoline, makes America move.
If you're debating a gas station franchise of your own be aware that it is difficult to find companies that offer new franchise opportunities. Sometimes your best bet is to purchase an existing franchise from a current franchisee. For an idea of cost, a Chevron franchise requires an investment of $1.5 million to $2.5 million. Cost goes up because of the need to buy the land, install the containment tanks underground and build the center. BP is another company that offers gas station franchises across the world.
Keep in mind that cost fluctuates with the size of the organization you run. If you plan to offer auto repair and a convenience store, your prices go up. If you offer a car wash and a restaurant, you are a more attractive option for customers, but your cost will increase. The finances slide along the scale from one decision to the next.
The total investment, royalty fee, franchise fee, terms, availability of financing and franchisee qualifications all depend on the franchisor's policy. The amount of time it takes to have a gas station franchise in full operating mode also depends on the individual franchise.
The pluses associated with the gas station franchise:
- Until all cars are solar-powered, gasoline is a necessity for society
- Self-service gas stations are a good way to keep labor costs low
- Co-branding is a great way to attract customers; partner up with a fast food restaurant or even a local shop or café and you have dual pulling power
- Other options include operating a car wash, convenience store, auto shop, even a restaurant or hotel. Adding an ATM will draw customers into your convenience store
And the negatives of owning a gas station franchise:
- These franchises are difficult to purchase
- Competition is fierce, especially for prime location land along highways, strip malls and in communities
- Safety is a major issue when dealing with such a flammable substance
- Local zoning and government rules may restrict your location
- Fluctuating oil prices drive gas prices up and down, affecting customers
- The risk of pollution makes proper containment an integral aspect