Since the demand for fuel in the United States is always increasing, that's why buying a gas station is a good investment for a small business. Like any business, a gas station can be a good investment. When stations are well located and well managed, they can generate healthy profits. However, the business is also labor intensive, and your ability to operate profitably depends largely on factors, such as road construction or the price of fuel, that are beyond your control.
Of course, once you really invest, you quickly discover the downsides of running a gas station franchise. A gas station that looks worn out won't generate the same revenue as a “nice” one, and you might spend more money on upgrades and repairs. Gas stations with attached convenience stores are low-risk, long-term investments that provide an income stream for years to come, but there are always many factors to consider before investing in commercial real estate. Gas stations are a big business to franchise because the demand for fuel in the United States is constant and it's not going to go away.
That's why it's increasingly rare to see a separate gas station that doesn't have an attached store. So let me start by saying that if you can afford a gas station in a great location, and these don't go on sale very often because they're a good source of income, you might want to consider buying them. In New York and New Jersey, while buying a gas station represents a unique business and investment opportunity, several contractual, legal, and commercial due diligence factors must be considered before signing a purchase agreement. Since the main advantage of a franchised gas station is the recognition of the name, trademarks, commercial design and canopies associated with the domestic brand, the owners of the franchised gas stations are franchisees and parties to a franchise agreement.
They may belong to the national franchisor in the case of franchised stations or to the owner (in the case of gas stations located on leased land). What most people don't know is that margins are low and that gas stations get most of their money from selling other items. No investment is risk-free, so it's important to recognize the potential risks of owning a gas station. In closing, yes, I understand that gas stations and convenience stores CAN be a good business or franchise.
When buying a gas station that will only involve leasing the underlying property (as opposed to buying directly), however, you have to worry about previous contamination. In fact, it's increasingly rare to find a gas station without a convenience store or quick-service restaurant (QSR). Evaluate whether an “environmental contingency” clause is included in the gas station purchase contract. It's imperative that you understand the relevant laws that apply to gas station ownership before investing.