Are gas station franchises a good idea?
With billions of dollars’ worth in annual sales, gas stations are big business in the United States. Gas station franchises offer the chance for individuals to jump on the gasoline retail bandwagon and run a busy and profitable business. Small Business Trends takes a look at 16 gas station franchise businesses throughout the U.S.
How much does it cost to open a Shell gas station franchise?
Shell Gas Station Franchise Shell is one of the most reputed brands for petroleum products across the world. The initial cost of opening a shell gas station franchise is estimated to be around $2,00,000. In addition, you need to invest in operating and buying inventories for refueling.
How much does it cost to start an ampm gas station franchise?
The initial cost to start an AMPM gas station franchise will vary from around $431,00 to $11,000,000 depending on the location and size of the unit. You also need to have liquid cash in the range of $800,000 – $1,200,000. The initial franchise fee is in the tune of $40,000 – $70,000 based on territory size, and other factors.
Are gas stations a good business model?
Gas stations and their corresponding convenience store or food outlets rank as one of the most popular and profitable franchises in the United States. With over $400 billion in revenue every year, and more than 100,000 gas station/convenience stores operating all over the country it is clearly a popular business model.
How much does it cost to franchise an AMPM gas station?
How much does a franchise cost?
How long has Express Convenience been in business?
How much does it cost to franchise Street Corner?
What is a Quik Stop franchise?
When was the Extramile franchise established?
What is a successful franchise applicant?
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Are most gas stations franchised?
Plan Your Advertising Strategies – Most gas stations are franchises, so you already have a brand people know. But, you still have to get YOUR business out there.
Is it profitable to own a gas station?
Gas retailers receive a fraction of the price listed on the sign–their net profit per gallon is around $0.03-$0.07–after factoring in costs like labor, utilities, insurance, and credit card transaction fees. This puts the net profit margin of a gas station at less than two percent.
How do I start a gas station franchise?
How to open a gas stationWrite your business plan. ... Register your business. ... Secure funding. ... Buy the property. ... Secure a gas supplier contract. ... Obtain necessary permits and licenses. ... Get business insurance. ... Market yourself.More items...•
Is Shell gas station a franchise?
Shell Gas Station Franchise Shell is one of the most reputed brands for petroleum products across the world. The initial cost of opening a shell gas station franchise is estimated to be around $2,00,000. In addition, you need to invest in operating and buying inventories for refueling.
Are gas station owners rich?
“It's a popular misconception that store owners are all wealthy,” Nordman said. “Your fuel is a volume thing. You've got to sell a lot of fuel to make a little bit of money off it.” “A little” as in 15 cents a gallon on average, according to the National Association of Convenience Stores.
What do gas stations make the most money on?
Top Sellers at Gas Station StoresCigarettes (34.4 percent)Packaged beverages (13.8 percent)Beer (12.2 percent)Food service (12.1 percent)Other tobacco (3.8 percent)Candy (3.7 percent)Salty snacks (3.2 percent)General merchandise (2 percent)More items...•
How much does a gas station owner make?
In general, though, you can expect your earnings to be anywhere from $35,000 to $150,000 per Million Litre Fuel Sales and convenience store sale from 18% to 25% for overall sales including cigarette and Lottery sales. Overall gas station may be 8 to 15% Cap rate, depending on location and condition of the business.
What is the most profitable franchise?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
How much does it cost to buy a Circle K franchise?
The franchise fee for Circle K is $25,000. The total investment to open and operate a Circle K franchise ranges from $171,000 to $1.9 million. A royalty fee of 4.5% of gross sales is paid to the company (franchisees who forgo funding from the company will pay a royalty fee of 3.7% of gross sales.
How much does a gas station cost?
The total initial cost typically runs between $250,000 to $2 million for a small gas station, although there are some less costly local chain options. However, you'll likely earn less from them.
Is Speedway a franchise?
Speedway is a franchise concept in the Retail Products and Services industry. It is also considered a Convenience Store franchise. They were founded in 1998.
How much do you need to franchise Shell gas station?
Company Owned Dealer Operated (CODO) Dealer's role is to operate the station and order products from Shell. However, awarding of the station to the Dealer/Operator will be dependent on Shell's decision & availability of a station. Able to invest average Php 5-8 Million initial capital for a station. No Franchise Fees.
How much money do gas station owners make?
You would be correct in assuming a gas station owner's salary will depend on many different variables. In general, though, you can expect your earnings to be anywhere from $35,000 to $150,000 per Million Litre Fuel Sales and convenience store sale from 18% to 25% for overall sales including cigarette and Lottery sales.
How much profit does a gas station make?
Gas retailers receive a fraction of the price listed on the sign–their net profit per gallon is around $0.03-$0.07–after factoring in costs like labor, utilities, insurance, and credit card transaction fees. This puts the net profit margin of a gas station at less than two percent.
How much do gas station owners make on gas?
After credit card fees and other operating costs, net profit for gasoline sales averages 3 cents a gallon — less than one cent per litre — according the National Association of Convenience Stores. When gas prices soar, and drivers think they're being gouged, stations are barely scraping by or even losing money.
What business makes the most money?
Profitability of the Largest CompaniesCompanyProfit per Day1Apple$151,386,3012Microsoft$107,506,8493Alphabet (Google)$94,090,4114Bank of America$75,150,68546 more rows
How much does it cost to franchise an AMPM gas station?
The financial requirements for an AMPM franchise includes an initial investment of between $400,509 and $7,807,883 and a liquid cash sum of $800,000 – $1,200,000. In-class sessions and hands-on training is provided with AMPM gas station and convenience store franchises.
How much does a franchise cost?
Franchisees are required to pay an initial franchise fee, which varies by store, as well as a down payment on the store’s opening inventory of approximately $20,000.
How long has Express Convenience been in business?
Express Convenience has been franchising since 1984. The gas station and convenience store franchise has a total of 19 franchise units located in the Midwest. With a $165 – $200,000 total investment, franchisees are provided with training to help their business. Financing is available for Express Convenience franchises.
How much does it cost to franchise Street Corner?
An initial investment of $45,645 – $1,479,800 is required for a Street Corner franchise and franchisees must make a net-worth of $100,000.
What is a Quik Stop franchise?
The Quik Stop franchise offers motivated entrepreneurs the opportunity to run their own retail and gas station store. Quik Stop franchise business owners receive classroom and in-store training, marketing support, promotional advertising, bookkeeping and accounting assistance and ongoing business consultation.
When was the Extramile franchise established?
The ExtraMile franchise brand was established in 2007 and has gone on to expand to more than 200 stores. Successful candidates for an ExtraMile franchisee recieve support from the Chevron Corporation in areas training, advertising, ongoing business advice and mechanizing.
What is a successful franchise applicant?
Successful franchise applicants will be given all the necessary tools and logistics to create and sustain their business.
How much does it cost to franchise an AMPM gas station?
The initial cost to start an AMPM gas station franchise will vary from around $431,00 to $11,000,000 depending on the location and size of the unit. You also need to have liquid cash in the range of $800,000 – $1,200,000. The initial franchise fee is in the tune of $40,000 – $70,000 based on territory size, and other factors.
Who owns Kangaroo Express?
The Kangaroo Express convenience store brand is owned by Alimentation Couche-Tard (ACT). It is a Canadian convenience store company. They have over 1,500 gas station stores in more than 13 states.
Who owns On the Run?
On the Run convenience stores, in the United States, are franchised by TMC Franchise Corporation, a subsidiary of Alimentation Couche-Tard, a Canadian convenience store company. On the Run, the original brand convenience store launched by Mobil to accompany its gas stations. It became the flagship store for Exxon and Mobil stations in 2000 after the two oil companies merged in 2000.
Is a gas station franchise profitable?
It is without saying, gas station franchise business is a lucrative business. However, it requires a big investment and dedication to make it profitable and successful. If you are the one with the required financial resources and want to start a retail business in the oil and gas industry, opening a gas station franchise business is worth considering.
Does Quik Stop offer franchise opportunities?
The company offers franchise opportunities to deserving aspiring candidates. Quik Stop franchise owners get extensive support from the franchisor in launching the gas station store and marketing.
How many gas stations are one owner operated?
Lets start with an interesting statistic. According to the NACS 2017 Retail Fuels Report, 59% of gas stations in the U.S. are one owner-operated. They own one store and often that store is attended by the owner. That type of business is what we call buying a job. The owners aren't working in the business because it makes so much money they are working there because they have to. Also interesting to note is that most major oil companies have sold off all or most of their fuel station holdings. Do you think you as a small business buyer have more market knowledge than the best business minds hired by the oil companies? Big oil is getting out of gas stations that should be a warning sign as should the huge number of single store owner operators. Many of these are struggling business owners making a living on very small margins. Which bring us to the next point:
What time do gas stations open?
Most cheap gas stations are located in less than desirable neighborhoods and open 24 hours a day. And lets face it most gas stations are often frequented by some interesting people particularly in the late and early morning hours.
Why aren't the owners working in the business?
That type of business is what we call buying a job. The owners aren't working in the business because it makes so much money they are working there because they have to. Also interesting to note is that most major oil companies have sold off all or most of their fuel station holdings.
Is a gas station a good franchise?
Now in closing yes I understand that gas stations and convenience stores CAN be a good business or franchise. In these videos I provide the negative side because as we all know the seller is only giving you the good side. An business decision that has considered both the bad and the good is an educated one.
How much does it cost to franchise an AMPM gas station?
The financial requirements for an AMPM franchise includes an initial investment of between $400,509 and $7,807,883 and a liquid cash sum of $800,000 – $1,200,000. In-class sessions and hands-on training is provided with AMPM gas station and convenience store franchises.
How much does a franchise cost?
Franchisees are required to pay an initial franchise fee, which varies by store, as well as a down payment on the store’s opening inventory of approximately $20,000.
How long has Express Convenience been in business?
Express Convenience has been franchising since 1984. The gas station and convenience store franchise has a total of 19 franchise units located in the Midwest. With a $165 – $200,000 total investment, franchisees are provided with training to help their business. Financing is available for Express Convenience franchises.
How much does it cost to franchise Street Corner?
An initial investment of $45,645 – $1,479,800 is required for a Street Corner franchise and franchisees must make a net-worth of $100,000.
What is a Quik Stop franchise?
The Quik Stop franchise offers motivated entrepreneurs the opportunity to run their own retail and gas station store. Quik Stop franchise business owners receive classroom and in-store training, marketing support, promotional advertising, bookkeeping and accounting assistance and ongoing business consultation.
When was the Extramile franchise established?
The ExtraMile franchise brand was established in 2007 and has gone on to expand to more than 200 stores. Successful candidates for an ExtraMile franchisee recieve support from the Chevron Corporation in areas training, advertising, ongoing business advice and mechanizing.
What is a successful franchise applicant?
Successful franchise applicants will be given all the necessary tools and logistics to create and sustain their business.
