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. But is it right for you and how can you stand out from the competition?
There are two ways of starting a gas station in the U.S. Either build your own or start a franchise. Before committing to a gas station franchise, you should understand how it works, how much it can grow your earnings, and the risks involved.
How To Buy a Gas Station Franchise?
Buying a gas station has never been more rewarding. Fixed, regulated prices (and maybe even the opportunity to open a convenience store or repair shop) provide a much more stable investment than an automobile-based franchise. Take advantage of the chance to sell fuel and food in one swipe and make your business much more profitable. Low labor costs and easy training are just a few advantages of owning a gas station. Follow these steps to buy a gas station franchise.
1. Write a business plan
Before starting any business you need a business plan that details the business operations, marketing, finances and team. A business plan allows you to strategize the start-up and is a necessary tool if you are seeking funding or financing for a new business.
2. Choose between the franchise options
Many people opt for hybrid gas station franchises to generate higher profits and sales. So decide if you want a convenience store or a food outlet with your gas station franchise.
Choosing the right location for your gas station franchise will influence how much traffic you attract.
4. Get necessary permits and license
You need to obtain different permits for a gas station franchise like fire inspections, water discharge, motor fuel outlet license, etc. Also, gas station franchises have inherent risks like burglary, employee injury, damage, and more, so it’s imperative to get all the necessary insurance to protect your assets and mitigate risks.
How Much Does a Gas Station Franchise Cost?
Investing in a gasoline station franchise business has a high financial entry barrier. The total initial cost runs $250k to $2 million for a small gas station. There will also be ongoing costs like franchise fees, insurance, licenses, inventory, royalties, and many more, which will require at least and additional $300,000.
Best Gas Station Franchise to Own in 2022
- Seven-Eleven Gas Station Franchise– The initial cost to start a 7-Eleven convenience store franchise is $47,050 – $1,165,400.
- Racetrac Convenience Store Franchise– Currently, this company has more than 500 stores in the United States. The initial investment in this franchise is $1 – $1.4 million, with a franchise fee of $25,000.
- Arco Am Pm Gas Station Franchise– The initial cost of this franchise is between $431,00 – $11,000,000, depending on the location and size of the unit. The company supports its franchise with on-the-job training, software, and marketing.
Best Gas Station Fast Food Franchises in the U.S.
One way gas station franchisees increase their profits is by also investing in a complimentary fast-food outlet. The two businesses have great synergy.
The best gas station fast-food franchises in the U.S. are all about convenience and value. When you’re on the road looking for something fast and cheap, nothing beats a good drive-thru for convenience. However, customers are also on the lookout for something more exciting than the old roadside standbys like Subway or Burger King.
As the leading franchise development firm for emerging brands, Fransmart has decades of experience identifying the next big thing. We are the franchise development company that helped bring Five Guys and The Halal Guys into the world of franchising.
Fransmart has identified the following emerging franchisees as the top brands to compliment a gas station franchise.
Ike’s Love & Sandwiches
This popular nationwide chicken sandwiches franchise has a crave-worthy menu with over 800 specialty sandwiches.
- Franchise Fee- $50,000
- Start Up Cost- $271,400 to $745,500
Brooklyn Dumpling Shop
America’s hottest tech-forward and industry-changing Chinese cuisine franchise, serving 32 delicious flavors of dumplings in an automated kiosk.
- Franchise Fee- $35,000
- Start Up Cost- $348,500 – $663,000
This franchise provides quality desserts, shakes, and coffee making it a perfect gas station food franchise option to give customers a treat on the road.
- Franchise Fee- $35,000
- Start-Up Cost- $349,000 – $785,500
If you’re considering entering the competitive gas station industry, set yourself apart from competitors by offering a unique fast-food outlet in your station. A hot food brand will be an additional revenue stream, offer cross-promotional marketing opportunities and be a draw for customers to pick your station rather than the one across the highway.