If you’re looking to invest in a gas station franchise, there are plenty of options to choose from. In this article, we’ll highlight 15 of the top gas station franchise opportunities available.
Whether you’re an experienced entrepreneur or new to the world of franchising, there’s sure to be a gas station franchise that suits your needs and interests.
What is a Gas Station Franchise?
A gas station franchise is a business model in which an entrepreneur pays a fee to operate a gas station under an established brand.
The franchisor provides training, support, and supplies to the franchisee, who in turn follows the franchisor’s guidelines and pays ongoing royalties.
The Gas Station Industry in 2023
The gas station industry in 2023 is expected to face continued pressure from the rise of electric and alternative-fuel vehicles, as well as increased competition from online fuel delivery services.
However, some gas stations are adapting by offering amenities such as convenience stores, food services, and car washes to attract customers.
Why You Should Consider a Franchise Gas Station
There are many reasons to buy a franchise gas station in 2023. Not only do gas stations provide a steady stream of income, but they also offer opportunities for growth and expansion.
Here are five reasons to consider starting a gas station franchise:
- Established Brand: Franchise gas stations come with an established brand, which can provide instant recognition and trust among customers.
- Training and Support: Franchisors provide extensive training and support to help franchisees run their business effectively.
- Marketing Assistance: Franchisors typically offer marketing assistance to help franchisees attract customers and increase sales.
- Bulk Purchasing Power: Franchisees benefit from bulk purchasing power, which can result in lower costs for supplies and inventory.
- Multiple Revenue Streams: Gas stations often offer multiple revenue streams, such as convenience stores, car washes, and food services, which can help increase profits.
Top Gas Station Franchise Options
If you’re considering a gas station franchise, it can be helpful to explore a franchise ideas list to find the right fit for you. But what is a franchise, exactly?
In short, it’s a business model where an entrepreneur operates a gas station under an established brand in exchange for ongoing support and royalties.
Here are some of the top gas station franchise options to consider.
1. 7-Eleven Convenience Store
This 7-Eleven convenience store brand-owned franchise requires one to be at least 21 years old, a US citizen or a permanent resident, and have no other business interests.
The franchise fee for the convenience store franchise ranges from $50,000 to $750,000, with an approximately $29,000 down payment.
2. AMPM
AMPM franchise offers financial incentives worth over $1,000,000 and franchise loans to eligible franchisees. They also provide special incentives for veterans. The franchise fee ranges from $35,000 to $70,000, while the total investment required is between $343,861 to $1,002,242.
3. Murphy USA
To be eligible for a Murphy USA franchise, one should possess mid or senior-level management experience or must have experience as a business owner. The total investment required for the franchise ranges from $26,025 to $116,650, and the minimum liquidity requirement is $100,000.
4. Kangaroo Express
Kangaroo Express is a Canadian convenience store company and part of the Franchise Registry and has around 1,500 company-operated locations. The franchise is connected with over 8,000 lenders to help connect franchisees.
The minimum net worth required is $1,000,000, and the minimum liquidity required is $100,000. The total investment for the franchise ranges from $268,500 to $4,846,500.
5. LUKOIL
LUKOIL is a Russian multinational energy corporation that offers a franchise opportunity in the fuel retail sector. The company provides its franchisees with assistance in areas such as site selection, construction, and operation of retail outlets.
The franchisees are also granted access to LUKOIL’s proprietary software, which facilitates inventory management, accounting, and reporting. LUKOIL’s franchise program presents a chance for entrepreneurs to enter the fuel retail industry under a well-established brand with extensive support.
6. Sunoco
Sunoco, which was founded in 1886, is a leading American company that specializes in the production and marketing of petroleum and petrochemical products. The company is known for its quality fuel products, advanced technology, and reliable service, making it a popular choice for motorists across the country.
The Sunoco franchise requires a franchise fee of $30,000, and a total investment ranging from $250,000 to $600,000, with a minimum liquidity of $125,000.
7. Shell
The Shell gas franchise requires a total investment between $2.5 million and $6.6 million and a minimum liquidity of $700,000. In exchange, franchisees gain access to the well-known Shell brand and a network of support from the company. The annual franchise fee for the Shell gas franchise is $30,000.
8. Chevron
The Chevron gas franchise requires a total investment ranging from $1.5 million to $2.5 million and a minimum liquidity of $500,000. The land purchase price for the franchise varies by location. In return, franchisees receive support from the Chevron company and access to the brand’s established name and reputation.
9. BP
BP (formerly known as British Petroleum) is a multinational oil and gas company headquartered in London, England. It is one of the world’s seven “supermajor” oil and gas companies and is involved in all aspects of the oil and gas industry, including exploration, production, refining, trading, and marketing.
The BP franchise is available to entrepreneurs who have a minimum net worth of $3,000,000 and a minimum liquidity of $250,000. The franchise fee is $30,000, and the total investment ranges from $2,500,000 to $6,600,000.
10. Circle K
To become a Circle K franchisee, one must have a minimum net worth of $1 million and a minimum liquidity of $100,000. The total investment required is almost $5 million. Circle K offers franchisees training and support, access to their technology and systems, and the opportunity to operate a business under a well-known and established brand.
11. RaceTrac
RaceTrac offers a franchise opportunity with a franchise fee of $25,000, a total investment of $1 – $1.4 million, and a $25,000 security deposit. The royalty fee is 3.5% of monthly gross inside sales, and the marketing fee is 1.5% of monthly gross inside sales. Direct financing is not available.
12. Street Corner
The Street Corner franchise opportunity has a franchise fee of $30,000, an initial investment of $105,000 to $460,000, and an ongoing royalty fee of 5% of the gross revenue. The franchise opportunity offers a flexible business model with a wide range of products and services to meet the needs of the local market.
13. Dash In
Dash In is a franchise with a franchise fee of $27,000 and a total investment ranging from $136,600 to $187,200. Prospective franchisees must have a minimum liquidity of $95,000. The franchise also requires a 5.5% royalty fee.
14. Extra Mile
Extra Mile is a franchise opportunity that requires franchisees to be qualified Chevron and Texaco retailers. The franchise fee is $15,000, and the total investment ranges from $215,000 to $4.21 million. Extra Mile’s royalty fee varies, and franchisees must also pay a 2% ad fee.
15. Marathon
Marathon is a franchise opportunity with a total investment ranging from $250,000 to $2 million. Franchisees must pay $250,000 annually to run the store, and there is a cost of about $160,000 annually to stock the store.
Strategies for Success in the Gas Station Franchise World
For those considering entering the gas station franchise industry, it’s essential to keep in mind that while there are great potential rewards, there are also significant challenges. But with the right strategies, you can position your business for long-term success. Here’s how:
- Understand Your Market:
- Research the demographics of your target area. Are you in a commuter-heavy zone or a tourist area?
- Understand the peak times for traffic and adjust your staffing and services accordingly.
- Stay Updated with Industry Trends:
- With the rise of electric vehicles, consider offering charging stations.
- Stay informed about new alternative fuels entering the market and consider offering them if there’s demand.
- Customer Experience is Key:
- Train your staff to provide exceptional customer service.
- Ensure your premises are clean, well-lit, and safe at all times.
- Regularly review and upgrade your amenities.
- Diversify Your Offerings:
- Apart from fuel, think about what other services or products your customers might need. Can you offer a mini-mart, a café, or even parcel pickup and drop-off services?
- Leverage Technology:
- Use apps and loyalty programs to reward repeat customers.
- Use digital signs and boards to promote daily deals or special offers.
- Engage with the Community:
- Sponsor local events or sports teams.
- Offer discounts to community workers like teachers, firefighters, or military personnel.
- Engage in community service or environmental initiatives to position your business as a responsible and caring member of the community.
| Strategy | Description |
|---|---|
| Understand Your Market | - Research target area demographics (commuter-heavy or tourist area) |
| - Identify peak times for traffic and adjust staffing and services accordingly | |
| Stay Updated with Industry Trends | - Consider offering electric vehicle charging stations with the rise of electric vehicles |
| - Stay informed about new alternative fuels and offer them if there's demand | |
| Customer Experience is Key | - Train staff for exceptional customer service |
| - Ensure premises are clean, well-lit, and safe at all times | |
| - Regularly review and upgrade amenities | |
| Diversify Your Offerings | - Offer additional services or products like a mini-mart, café, parcel pickup and drop-off services |
| Leverage Technology | - Use apps and loyalty programs to reward repeat customers |
| - Utilize digital signs and boards to promote daily deals or special offers | |
| Engage with the Community | - Sponsor local events or sports teams |
| - Offer discounts to community workers (teachers, firefighters, military personnel) | |
| - Engage in community service or environmental initiatives to showcase social responsibility |
How to Choose the Best Franchise to Set Up Your Gas Station Business
Choosing the best gas station franchise to set up your business can be a challenging task. It’s crucial to do thorough research and carefully evaluate your options. Here are four key factors to consider when selecting the right franchise:
Types of Franchises
Consider different types of franchises, such as a coffee franchise, and see what aligns with your interests and goals.
Shop Business Ideas
If you’re looking for shop business ideas, seek out gas station franchises that offer additional revenue streams, like convenience stores or car washes.
Save Money on Gas
Choose a franchise that provides discounts on fuel for franchisees to help lower operating costs and save money on gas.
Support and Training
Choose a franchise that offers comprehensive training and ongoing support to ensure your success.
How much does it cost to open gas station franchises?
The cost of opening gas station franchise businesses varies widely depending on factors such as location, size, and franchise brand. However, startup costs can range from tens of thousands to millions of dollars.
Is owning a gas station franchise profitable?
Owning a gas station franchise can be profitable, but it’s dependent on various factors like location, competition, and operating costs. A well-run gas station can generate a steady stream of income.
Are gas stations a good investment?
Gas stations can be a good investment for franchise owners depending on location, competition, and franchise brand. Evaluating the pros and cons of franchising can help determine if it’s a good fit.
What is the biggest gas station franchise?
The biggest gas station franchise is Chevron, with over 19,000 retail sites in about 84 countries worldwide.
Do gas station owners make good money?
Gas station owners have the potential to make good money, but having a profitable business depends on factors such as location and competition. Evaluating franchise vs business opportunity options can also impact earnings.
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This article, "The 15 Top Gas Station Franchise Options" was first published on Small Business Trends