5 Reasons to NOT Buy a Gas Station

[@FranchiseCityOnline]

How much do franchises actually make? Also examples of little known million dollar a year franchises for less: kzbin.info/www/bejne/mHnSlq1-ptuAoKs

[@EqualsThreeable]

I've worked in the gas station industry to over 15 years. Your advice is very good for those looking to get into the business. I wouldn't go franchised gas station, independently run is the best. We have two BP locations and thankfully we have good locations. Here's another tip you missed, have locations with no competition, or possibility of competition. Location, location, location, if there is a vacant lot across the street from your gas station, you should either buy that land or know what it's being zoned as for development. Our two stations are fortunate enough to not have any competition surrounding us, something getting increasingly rare as we plan to acquire a third station There are two types of customers, your passerby and your regulars. Teaching employees to learn regulars names and stories is hard about as hard as finding good employees who want to work for you more than 6 months. Having a blueprint for what to do in the business takes years of experience, this business is not easy. Judging the amount of security necessary is another factor, for our stores we don't need bulletproof glass or security guards on premises, the surveillance cameras needed. We have never been robbed (knock on wood), but we have had those interesting customers and at times called the local authorities to remove them. 5 years, 5 years is the amount of time you will have to spend each and every day going to that location, after that, you can afford to spend a little less time there. Our newer station is only 5 years old now, but every year since opening has seen bigger numbers with more customers, it's all about building a relationship with those around your location, becoming part of your city in every conceivable way. Reaching out to schools, churches, local groups are an important part of what connects you to more individuals. Lastly, you should know the costs of going into business as much as maintaining that business. Costs are not cheap, whether it's general maintenance or hardware upgrades, they don't come cheap. a single new dispenser can be over $15,000. Know the condition of the place you are buying. In many cases it's best to build an entirely new station somewhere else than buy an old run down location and spend more money trying to make the place up to code.

[@PizzaRatJC]

I can't afford toilet paper, I've been wiping with stray cats for the last 8 months, but sure, I'll watch a video about why I shouldn't buy a gas station.

[@VlOREL]

I'm dead 🤣🤣🤣🤣🤣🤣

[@Batman-wv5ng]

Pizza Rat Back in my country when l was kid use to wipe with wine tree leaves , and fig tree leaves this is true .

[@terryreyes1125]

Holy crap... stray cats 😳 i really hope you were just kidding 🤣🤣🤣

[@mikearicks77]

Amen.

[@PizzaRatJC]

@@terryreyes1125 I never kid.

[@Larry]

Gas Stations in the UK have mostly become mini supermarkets, with the occasional bakery and/or starbucks in-store too. Convenience seems to be more profitable for them than selling actual petrol nowadays.

[@cpufreak101]

Larry Bundy Jr I see you yet again Larry lol

[@cordiasr7021]

You’re everywhere Larry!

[@Sauceyjames]

So this is why this video was suggested... Thanks Larry.

[@Zinras]

Don't forget that one of the reasons the oil companies are pulling out is because the market for gasoline is going to take a big hit within the next few decades. France, Germany, the UK, India and China are the biggest markets that have dates starting from 2025-2030 for their first bans of fossil fuels for cars. Typically starting with diesel and then phasing out gasoline from 2030-2040. That can *seem* far off today for regular people but not for a business owner selling fossil fuels. The actual sale of fossil fuel for cars will take a little longer but the manufacturing of fossil fueled cars ends by 2030 or so.

[@mrskizzot]

I can literally try to find the most obscure random videos on youtube..and boom Larry is there...

[@leaturk11]

I ran 2 gas stations in the UK and this guys right on the money, I would never get involved again.

[@FranchiseCityOnline]

Thanks for the comment.

[@adhesivecookie]

William, I agree. I operated 3 franchised sites under shell and will NEVER go back. 20k per site + shop sales. That's about it. Increasing rent, rates, minimum wage, pensions etc. Was working 16 hours per day, every day. It's not the same as the 90s where you could make a healthy living.

[@MW-ty5zw]

I work extra at one. My boss works a lot... I had to step in as sort of manager when he was on vacation as I was the person who'd been there the longest. I worked so much overtime dealing with everything. For example, working 3 hours overtime a friday night because someone stupid decided it was a good idea to flush a diaper down the toilet until it was proper stuck.

[@GrayFoxGamingHD]

60k a year is not a healthy living? There is people working 16 hour a day for less than £20k a year.

[@adhesivecookie]

@@GrayFoxGamingHD Shell paid 20k per year per site for basic operating costs. You received 0.03p per litre fuel commission and paid 2 12.5% commission on shop sales. As stated earlier, rent and rates for one site were £3500 per month alone. I had to pay utilities, insurance, staffing costs, maintenance, pensions, national insurance etc on top. I was left with 24k per year from three sites combined. Not worth the investment.

[@jkholtgreve]

Only guy I’ve known who’s done “well” owned five stations in upper middle class areas and he STILL worked 16 hrs/day. No thank you.

[@rokujones]

"Interesting People" = homeless, drug addicts, thieves, foolish teenagers, etc. Also, as a general rule of thumb, stay away from most gas stations between 11 PM and 5 AM due to "interesting people" being more likely to be there.

[@supa3ek]

Roku Jones just call em for what they are........ FUCKING USELESS BUMS IN SOCIETY !!!!

[@cooldude2251]

lets be honest. he was talking about black people. businessmen have a nice way of not being racist while being racist at the same time

[@basementdefenestrationeter3731]

FTG Kelvin 0 So youre going to be racist and pretend it was him? no one was talking about black people. theres not a single african within 1000 miles of me and I still see these same types of people in public...

[@cooldude2251]

Solid I wasn't the one that sat there and euphemism African Americans and poor neighborhoods. The fact that he jumped around the fact shows that he didn't want to admit that most people in these poor neighborhoods are black. No instead he said (what was it... less desirable) place to invest? Like wow dude, sorry these places are too ghetto for your white privilege. I understand what you are saying, but not admitting that most people who live in these poor neighborhoods are African Americans is racist, not the other way around

[@cooldude2251]

Natalia Roslyakova primary sources do not take the place of statistics and evidence.

[@genxmurse7019]

Don't buy any franchise, period! As long as you are a franchisee, you are not the true owner of that business. You pay to hang someone's name, not only are your profits heavily gouged, you are bound to play by their rules, (which all too often, are unfair). And if you don't play by their rules, they'll have the rights to shut you down.

[@19swaggkidd]

Gen X Murse70 theres many benefits as well, free marketing, advertisment, consistent rates etc..

[@animewatch4213]

I got a family to run an ice cream franchise. The company downright shut him down because it is not profitable enough for them. Total Lost.

[@TranquilRains]

19swaggkidd right like some deals can give you one hundred thousands of dollars worth of stuff

[@GenuwineG]

That’s right, that’s why I started my own business. Now I answer to no one! I love it.

[@fernandgauthier7895]

the only franchise i would buy eye closed is a Mcdonalds they garanty a revenue over 1 000 000 $ per years . 😉 but its hard to find a good location to put one on ,because they already everywere .

[@flufficus54m65]

Don't ever buy a gas station from the gas station

[@rental808]

Got it. I'm gonna start selling drugs instead.

[@leeprice386]

you can sell them outside gas stations

[@malikj6926]

Electra Pay card coming soon! Lmao bruh

[@arizonajames6131]

So you're going to work for the government!

[@momoblue1691]

Do you accept credit card? And free shipping?

[@rental808]

Yes.

[@Schaffkid]

My grandparents owned an amoco gas station for 30+ years. It was an old school style one with a mechanic shop connected. The mechanic shop was the only thing that was profitable. BP bought amoco and were trying to force them into a costly remodel and to shut down the shop. They sold it for pennies.

[@FranchiseCityOnline]

Thank you for the comment. Sadly not a rare story.

[@casualsuede]

My friend bought a gas station. He gets about 500k/yr in positive cash flow and paid off the loan in 2 years. It is extremely difficult and long hours. It is a tight profit margin and his sundry item driving it. It is philips 66 chain. The reason why he is so successful is because he loves his customer base and has hundreds of regulars, many daily. Treating customers well is really where success comes in.

[@imajustabush31]

casualsuede you are very right! I believe that within the service industry, a worker should aspire to have a customer feeling better than they did when they came in. Doesn’t have to be much. Simply smiling can brighten someone’s day. Good on your friend for loving his customers.

[@AlexTheGamer97]

I would never be good doing something like that because the people tire me out eventually.

[@josezaragoza3188]

Just wait until he gets robbed

[@justinlewis7677]

Has your friend had any major issues with maintenance on their pumps. Just asking because I was a manager at a high volume truck stop and there are a lot of issues with the pumps alone.

[@Frankdux1989]

What state did your friend buy this gas station in

[@rafik1491]

I’m in the gas station business all negative he said is real

[@juggstar5613]

L K, You are a filthy dog.

[@talalqatabi6483]

I don't know about that my unlce makes 100k a year from his gas station opened it for 100k it was closed for years......

[@bendover-bz4bc]

@@talalqatabi6483 it's still open or closed ?

[@princeoftrap]

how much money you make?

[@rafik1491]

@@princeoftrap not much because I don’t sale lottery and alcohol

[@rajbeekie7124]

Many of the immigrants who end up buying gas stations and motels are very hungry to make it in America. They are willing to put in 20 hours a day just to make $20,000 a year. The hope is the business appreciates in value. The long hours and low pay are not the biggest concerns. The biggest concern is the interesting people who are willing to kill for a few dollars.

[@momoblue1691]

If you buy the business, they give you the green cards. So it’s not just for the money

[@macneoh7418]

Plus they get huge tax breaks.

[@rajbeekie7124]

A green card is a little more complicated than buying a business,. Here are some logistics associated with the investor green card. "The reason why this green card is less popular is because of the amount of money that needs to be invested. The USCIS requires at least a $1 million investment in order to qualify. However, if you are starting your business in a rural area or an area with high unemployment, the minimum will be set to $500,000."

[@NumbaOne]

Don't forget about all the side action as well like food, drugs, phones, single cigarettes , and anything else i have seen it all.

[@rajbeekie7124]

Correct. Not too many gas stations make money selling gas.

[@marcsarfati3291]

I will second most. He right on everything Missed one. Pump technology up grades. Some are forced to franchise Some are forced by government Some are forced by market. Regulations. Regulations

[@FranchiseCityOnline]

Agreed. Thanks for the comment!

[@my3dviews]

Another missed thing is that more cars will be electric in the future and gas sales may decline.

[@gauchegaucho]

Marc Sarfati z

[@tolpacourt]

He be we be she be.

[@youcanthandlethetruth6007]

You are not forced....why not take the credit card readers out and force your customers in your store depending on location

[@whitecurtis225]

Truck driver here. And I deliver fuel to gas stations. Everything on this video was spot on. All gas stations are either racetracks,Murphy or some brand of circle k (shell, Exxon, etc). The mom and pop stations are having a difficult time competing. Infact my job has gotten worse as far as pay goes.

[@FranchiseCityOnline]

Thanks for the comment!

[@formerevolutionist]

"Buying a job" I have owned two businesses, and that is exactly how I would sum it up. Not only is it buying a job, often it's buying a job for less than minimum wage!

[@AntonioCostaRealEstate]

There is more to it .... Some Fuel distributors demand escrow deposits at a tune of over $100,000 meaning your money is tied in at low interest rate to satisfy your fuel suppliers requirements. Fuel is sold nearly at loss just to create traffic to the store. The money is in coffee , sandwiches, potato chips, soft drinks , baked goods , convenience itens. And then there is hazmat costs. There is a reason there is not longer fuel service at the pumps. The margins on fuel are almost nonexistent.

[@leeandadaelliott]

I now understand more clearly why my local chain gasoline station issues a card that knocks 10 cents off every gallon of gas. Ostensibly, by having you pay for your purchase in cash, they'll save having to pay a fee to the credit card company. But the real reason is to get the customer to come into the store and very likely spend far more than the buck fifty they save on filling up the average car. Separating the average Joe from the maximum amount possible of his money has become quite the art form.

[@FranchiseCityOnline]

Good points! Thanks for the comment

[@thedevilsadvocate5210]

I think it's good business if you can get him to buy a Clark bar and a coke

[@AzeOfSpadez]

I believe that's illegal now in the us

[@DarthObscurity]

AzeOfSpadez Sure isn't. I see stations that advertise the cash price on the big board for the interstate drivers.

[@ttctoorr1740]

Lee Elliott 😃

[@SEMSAworks]

Very well explained. Couldn't be more accurate. I owned a Shell gas station for 20 years on a main street in a small city. It was a money vacuum machine. I stopped selling tobacco after seeing close ones suffering from it. Hiring someone to manage the store was not possible due to the amount of money i was losing. I have been trying to sell the gas station for more then 10 years and i can't, even though its on the main street and anybody passing through the city to another city have to pass through my land. Now i took down the building and removed everything on the land because taxes are very high. I am trying to sell the land and went to multiple multiple brokers. The land is big enough to build a strip mall even but i am already giving up on building anything i just want to sell it.

[@FranchiseCityOnline]

Thank you for the comment and sorry to hear of your situation. I hope everything works out.

[@veed_official]

If you were making good money then why do you want to sell it. And if you make good money why can't you pay the taxes???

[@oseanwilliams5022]

are you still trying to sell this one atm?

[@SEMSAworks]

@@oseanwilliams5022 i sold it 2 years ago a subway opened in its location

[@Huero805]

I use to deliver soft drinks to gas stations, alot of owners are good people but not happy, always complaining and miserable, most of the time they can't find good employees so they are forced to work long hours, most good employees wind up embezzling the gas station I've seen all the time, This guy is right

[@FranchiseCityOnline]

Thanks for the comment!

[@Huero805]

@@FranchiseCityOnline you're welcome

[@derrickbosler9704]

How do you embezzle from a gas station?

[@Huero805]

@@derrickbosler9704 you dont ring up certain items just charge pocket the money, take product home, take lotto tickets. i knew of a guy who took $10000 with in 4 to 6 months tlil the owner caught on to his game on camera from her home

[@derrickbosler9704]

@@Huero805 WOW that is fucked i hope the dickhead that stole from him gets robbed and beaten

[@mantrajojo4163]

The infographic shown at 4:00 suggests the reason oil companies got out of owning gas stations, is because they organized a system where they get the majority of the profits from gas sales without having to worry about the running costs of a gas station.

[@1978garfield]

If you have noticed nearly all of the big oil companies have separated their upstream and downstream businesses. For instance Marathon Oil builds wells and produces oil and sells it at a profit on the open market. Marathon Petroleum then buys oil on the open market, refines it and markets it to the independent owners of Marathon stations. There is a markup at each step of the way. Years ago vertical integration was the name of the game in gasoline. A big outfit like Texaco or pre split Marathon would build wells, produce oil, send it to their refineries then market it to their franchisees. Other companies took it one step further and owned the gas stations.

[@hassanbazzi3545]

Extremely valuable information. I had a couple of gas stations with convenient stores. I spent hours sitting inside and monitoring the flow of customers with the owner’s approval. I took the register readings every hour and had the owner signed a couple of weeks on hand training and a five miles no competing. I hated the business due to the long hours but it produces good money. Fantastic video as always. Thank you 🙏

[@veed_official]

Hey are you still in the business??? Are they still profitable?

[@hassanbazzi3545]

@@veed_official if you own one in the city is like having a day job pay. The giants are controlling the market unless you open one in the low income areas but it comes with a major headaches. So long hours working and not to mention theft on a daily basis. Sometimes the people you trust the most are the one who will do you bad.

[@veed_official]

@@hassanbazzi3545 yeah that's right I agree,..... How much does it cost to have a gas station with grocery store in a peaceful environment?

[@veed_official]

@@hassanbazzi3545 may I have your Insta please, coz it would be more easy to ask and reply faster. Thank you

[@fredygump5578]

New regulations roll out in 2020...many small stations will be forced to close...or try to sell out to unwitting buyers. The major change in the new regulations is requiring underground containment to be installed and to be periodically tested to ensure water tightness. Most small stores do not have containment; many small stores are pre-1988, have steel lines (single wall) and single wall steel tanks. They are a ticking time bomb. So far they've mostly been grandfathered in, since their construction pre-dates the first regulations. But the new regulations require everybody to have this containment, regardless of when the store was bult. Also, it is unlikely that large franchises will buy out these small stores, unless they have an exceptional location. And if a store is bought out, it'll likely be torn down and a new store built in it's place. But the risk of uncovering old contamination and being liable to clean it up means large franchises will avoid doing this. (I do environmental compliance testing for a living; you'd have second thoughts about even buying gas from these small stores...if you could seen what I've seen!)

[@FranchiseCityOnline]

Great insight - thank you for the comment!!

[@MatthewHolevinski]

Well now I know how to purchase a ticking time bomb :) thank you

[@doctorjones9083]

Well im waiting for you to tell me what you have seen😕❓

[@jkholtgreve]

This is one of those regulations that should exist but should be government-subsidized for all but the largest businesses. Not means testing regulations is a very clever way for big business to win either way.

[@fredygump5578]

Have you seen pictures of ship wrecks, all covered with rust and barnacles? That's a good place to start. I've seen pipes so rusted that the outside looks like tree bark...and 1/4" thick chunks of rust fall off when I tap it with a hammer. Sometimes a pipe like this is still pretty solid, but I've seen some rust through where they thread onto the tank, so they're no longer attached. (That wasn't a fill riser, so fuel wasn't leaking out...but water was getting in.) And then there is blatant cheating, like how a "clever" contractor put an absorbent snake into the interstitial riser to hold the water sensor above the water level. Because if the sensor isn't in alarm, there isn't a problem, right? (Interstitial space is the space inbetween the inner and outer wall of a double wall tank...and water in the interstitial means the outer wall may be compromised.)

[@SZ-ZS-]

i live in D.C. and there are two gas stations down by the kennedy center/potomac river, and they are within several 100 feet of each other, yet one charges massively more then the other one AND gets massively more traffic. It's because the way the roads are setup, if you are from out of town you will most likely find it impossible to get to the cheaper one due to a maze of one way streets that change direction depending on day/time.

[@ZimaletaMotors]

Thanks looks like I won’t be buying a gas station any time soon lol this would explain why the gas station down the street opened up last year and closed 3 months later, the entire family was working it, husband, wife and the kids, and it still failed, they were only renting it but did 37k renovations

[@rentslave]

In New Jersey,there is also the cost of labor as we don't have self service.

Tom Dockery what the stupid BS is that. I would sue your country for such stupid fees. (As I live in Seattle haha).

[@billybassman21]

I thought that law was overturned last year?

[@JohnNNJ]

You can buy one for a dollar to twenty five percent of the assessed value if it needs remediation, the discount based on that cost. Then lie to the state, claim hardship, and get them to pay for it through PUST. It is one of the biggest scams of tax dollars going on, please write your state assembly person or senator.

[@ACoustaDC]

Its because of the mafia...

[@1575murray]

The state legislature is considering changing the law to allow self service as a way of reducing gas prices.

[@pattrickstratton1678]

Having run a Gas station/C-Store I can tell you that everything he said Is true. 96 hour weeks some times... let that sink in for a sec.

[@FranchiseCityOnline]

Thanks for the comment.

[@wfcyellow]

This is a video title I didn't think I'd see when I woke up today.

[@joeskis]

You normally think about video titles you expect to see in the morning.?

[@25mfd]

Sounds to me like the better option is to be a fuel delivery driver.

[@FranchiseCityOnline]

Or working in the oil patch!

[@imxploring]

25mfd Gas stations like many business opportunities provide a nice living for EVERYONE in the business chain other than the end business provider. Often with much less investment or responsibility.

[@alfredhorg]

Or cleaning the restroom! howibeatgold.wordpress.com/2017/03/27/janitor-amassed-an-8m-fortune/

[@fredygump5578]

All the money is in compliance testing now! With all the new regulations, someone has to go to all these sites and test everything.

[@TheBlackScatPack]

And even then it’s not much money in that, unless you own your own truck.

[@atx4fun]

I was reminded of an old joke. "Want to make $30k owning a convenience store?, SELL IT!". That is more true now than when I heard it 20 plus years ago.

[@carportchronicles1943]

The 7-11 in my neighborhood decided to stop selling gas a couple years ago, and removed their tanks and pumps. The tanks were due for replacement, and the owners said they could not justify that expense based on the amount they made from selling gas. We are in a nice neighborhood on the outskirts of town. The next closest gas station is a half mile down the road, and more expensive. The next nearest station after that is another mile away. They sold a lot of gas, but it didn't generate enough profit to be worthwhile. On another note, the environmental liability isn't just the current owners responsibility. If it can be determined that a tank started leaking 20-years ago, but the leak wasn't discovered until now, every past owner over the course of that 20-years can be held liable for the cost of the clean-up. Old gas station properties were often "service stations" many years ago. Oil and other chemicals often seeped though the floors of service bays, or was simply dumped into a pit behind the building (common practice in the days before recycling and environmental regulation). Again, current and past owners can be held liable for the clean-up. This is also something to think about if you are considering the purchase of a lot which was previously the site of a gas station. The city I live in recently spent several million dollars on the environmental clean up of three abandoned gas station properties after the owner declared bankruptcy. The city felt it was worth the expense to return the blighted properties, which were all in prime locations, to productivity.

[@pxndxlunx5821]

This explains everything on a gas station that is somewhat far away out of town by 2 miles. It has literally opened twice and failed twice. Doesn't help that their gas was not known but also the set up was poor, it looked old and ready to fall apart. Lights were dim, hardly anyone went there and i asked a few ppl and they all said they thought it wasn't open and that their machine didn't work which was true.

[@d.p.6940]

I am a business broker here in Maryland. I have been full-time in the industry since 2002. I'm pretty sure that every single word you said in this video is correct. You knocked it out of the park!

[@FranchiseCityOnline]

Thanks for visiting!

[@efthimios]

my dad came from greece in the 70s. became a mechanic, ended up owning 3 gas stations/ repair shops in brooklyn. The money he made was insane for the time. Unfortunately they were business leases. But it was a special time where independent shops did well and from what he said they sold alot of gas and it was profitable, but obviously the money was in repairs. No mini market types then really.

[@cluckeryduckery261]

Thank god i found this video. I was planning on stopping and purchasing a gas station on my way to work this morning.

[@bunberrier]

Watch "Gas Station Encounters" on KZbin

[@Rehvidepaigaldus]

he just said he does

[@ThatsJustEric]

She Gone

[@ensjesse]

Gas Station Diaries

[@PrecursorYang]

Imma charge you a 3X tax just for mentioning that name

[@bunberrier]

@@PrecursorYang I was going to pay for it. I always put jerky down my pants when Im shopping.

[@michaelweaver9528]

I own a petroleum service company and bill my guys out at $90 an hour which is low compared to my competitors but even at that rate the cost to repair certain equipment is astronomical because of the parts. $600 for a simple repair just so you can make 10 cent a gallon, I don’t understand how mom and pop shops stay in business.

[@FranchiseCityOnline]

Wow - interesting - thank you for the comment! A lot of them don't stay in business :-)

[@boatlover1875]

I knew someone several years ago who one but he had a successful repair shop like the old days. He couldn't even set the price he sold gas for, it was dictated. Oil companies also eventually ran most of these operations out of business so they could make money with a convenience store. He wasn't a bad guy and worked hard. He eventually did some jail time for buying some of his gas untaxed on the black market to try and make ends meet.

[@FranchiseCityOnline]

Thanks for the comment!

[@matthewfriske438]

my uncle owned 3 7/11 branded stores on long island 2 of which had gas pumps on property, from talking with him I can tell you he was making $150-300k a year in the mid 90's and then sold all 3 for $2.5 Million in 2005 when he retired, Granted all 3 were on route 110 one of the busiest roads on long island with thousands of cars passing everyday.

[@FranchiseCityOnline]

Thanks for the comment. A lot of people who got in in early made money. Also those who got in before 7-Eleven changed the agreement. Today - not so much.

[@hzuiel]

I worked for a chain of convenience stores that was tied to marathon for their fuel, and they were very very much at the mercy of marathon. I got dinged by a marathon secret shopper for not saying hello and goodbye and they fired me immediately despite having no problem with my work performance and understanding why i didn't say hello and goodbye(only worker in the store, extremely busy evening due to an event in town, lines of people waiting to check out.) The manager of the store liked me so much he tried to get me to come work at the gas station his mother owned for more money but it was too far of a drive. They weren't even remotely willing to go up against marathon, marathon held all the power due to their contracts, and marathon had the right to yank down the marathon sign and branding any time they felt like if a store didn't meet their standards for one reason or another.

[@bluekeet]

First video I see from this channel and I instantly subscribed after the video ended.

[@FranchiseCityOnline]

Thanks for comment and the sub!

[@lll9107]

You're simply wrong 3:00. Speedway is a subsidiary of Marathon Petroleum Company. We are now the largest gas chain in the U.S., having just bought the east coast Hess stations last year and we bought another chain of gas stations very recently on the West Coast. You are correct, however, in stating that gas stations are the shittiest business to own in the world. You don't make much selling candy bars/chips/20oz sodas/state-mandated minimum alcohol pricing. In fact, most of that profit is evaporated through theft. Main money makers are fountain drinks, coffee, roller grill, hot cart sandwiches, etc.

[@makeminefreedom]

Make sure the main gas storage tanks are double walled fiberglass and not metal. If metal tanks are permitted they must be excavated and changed at least every 10 years if not they will eventually corrode and leak. I knew an owner who only owned his station for less than a year when a tank ruptured. Between the cleanup costs and the cost of replacing the tanks he lost everything.

[@prestonweitersjr.9460]

9/2/18, Kill all the environmentalists.

[@noleftturnunstoned]

Preston Weiters Jr. You don't have to be an environmentalist to not want refined hydrocarbons leaking into your states ground water. I thought you guys were big on the rights, and responsibilities of the individual? If you made the mess than clean it up.

[@daytonasixty-eight1354]

You are right, but back in 1950,1960, 1970 when a tank broke and you had to clean it up, it cost a fraction of what it costs now. The only cost was replacing the tank. Now you need to go through a fuck ton of bureaucracy to do something that is pretty simple.

[@galehess6676]

such thorough clean up in the good old days and now everyone is getting cancer and benzos that spread faster in water than the actual water moves have nothing to do with it? roundup is safe too, how's your parkinson's? facts is facts.

[@AnythingMike]

Does KZbin in anyway read our thoughts??? I was literally thinking of buying a gas station yesterday and now I got a video of it here!!! Wtf is going on??

[@FranchiseCityOnline]

The angels of destiny and Franchise City have your back!

[@ensjesse]

Exactly. It was a tactical supply shop for a while and now it sits abandoned but it would be so convenient to buy gas there. Nothing on this side of town. Of course it went dead for a reason.

[@92hbhbhybrid88]

Block your camera, it can read your thoughts through your eyes..

[@AnythingMike]

92hbhb Hybrid I really don’t wanna believe that, but can you elaborate?

[@amontri3246]

Mr Man ....I have experienced the same thing I had a a thought once of a certain subject and KZbin put up exactly what I was thinking without me saying it I've been told KZbin is slowly becoming A.I ..artificial intelligents

[@ItzMiko9]

Believe me, if you have a good location you will be earning great money. My family owns stations and for 35 years we have had very minimal violence or crime there. Get you a good location be a boss and you can make one hell of a store. It’s all up to you, get out be proactive and be a BOSS! couple gas stations and your set! Great location means big money trust me.

[@TheAnanaki]

I have been told by several owner operators that cigarettes are only sold because like gas they attract customers. It is an expected item. Cigarettes make the stores little to no profit. Liquor stores are where you can make some profit off of tobacco products as they typically do not sell at state minimum like the majority of gas stations do.

[@weareorigin]

Some Americans cannot afford to buy a house, and the rents is going up. $7 for ice cream in a gas station, or $4 for same in a grocery store. I know employees and the business needs to make a profit but DANG.

[@FranchiseCityOnline]

All true. Thanks for the comment.

[@hippiebits2071]

Just be thankful we live in a nation with freedom of choice. For some the convenience is worth the money for others not so much.

[@Islanders83]

It’s called a Convenience Store. You pay extra because it’s convenient.

[@SquirrelChupacabra]

Exactly ! I see people come in time and time again for stuff that a normal store sells because they don't wanna deal with the lines at the Walmarts/Grocery stores for a gallon of milk.

[@mycelia_ow]

@@SquirrelChupacabra, with the inclusion of self-checkout, if all you're buying is milk, then you're gonna be out quickly.

[@dman2188]

Thanks .. you've just motivated me to buy a gas station

[@FranchiseCityOnline]

Be sure to buy it through Franchise City brokers!

[@keninil8771]

A friend and gas station owner told me there is no float on the product. That is, you have to pay for the gas upon delivery, not in 30 days. And as mentioned in the video, the profit is almost too low to get a loan on. Also a bobble in the market can cause a significant loss on a tanker load over night. You need deep pockets to cover the price fluctuations.

[@frankfreeman2862]

If any gas station don’t sell over 200.000. Gallons a month and not doing inside over 120.000. In groceries you’re a slave to the business..

[@peace10000able]

Frank Freeman my station does 180 and 130 in store , we take 30k take home

[@Eyegetdeep]

@@peace10000able do you mind providing more details

[@marlin7699]

peaceforyou 30k monthly or yearly?

[@AnythingMike]

Marlin I believe it’s monthly. And it depends on the state.

[@zarifsadiq829]

@@peace10000able 180k gal a month × 0.15 margins = 27k in gross profit on gas alone. 130k inside × 0.35% margins = 45,500. Total gross profit = $72,500. Overhead approx = 15- 20k payroll, 3k+/- pg&e, mortgage ? Could vary substantially, other expenses garbage, phone, miscellaneous ect +-$ 10k. 30k a month seems about right. A gas station doing those numbers however will cost you around 2.5 to 3 mil in northern california.

[@Fusiongearz]

I think that's why ARCO stopped using the islands where you could pay for your gas in cash so that more people go into the store. (also they charge 35 cents I believe if you use the card)

[@Melissa0774]

My uncle owned a Gulf station for a short time in the late 90's. It was his life long dream to own a gas station/repair shop because he was a mechanic and he loved working on cars, especially old ones. My grandmother gave him her life savings to buy the place. I was only eleven at the time, so I don't know all the details, but I think what happened was that he did no research going into it and was to idealistic. He actually framed the first cash he made and hung it on the wall, which I always thought was stupid, even then. He stupidly didn't realize that you don't make a profit selling gas. And he didn't do as much business fixing cars as he thought he would. I remember he'd ride around in the car with me and my dad, looking at the prices on all the other gas stations, wracking his brain to try and figure out why he wasn't making enough money. Naturally, the business failed after about two years and he killed himself over it. Don't be like him. Do your research. Have a backup plan. And for the love of God, don't frame your first money and hang it up on the wall like it's a god damned trophy!

[@jmfs2k273]

That's truly very sad.

[@label1877]

Sorry for your loss...it is a hard business. Ironically the money is in repairing cars... leave the gas for people who don't know better.

[@Melissa0774]

Yeah, thanks. He felt he'd been screwed over by Gulf Oil somehow, but I don't know all the details, as I was just a kid at the time. I think he thought they deceived him somehow, or told him he'd be able to charge more for the gas than he actually could, or something. But he always had a lot of personal problems and really was not qualified to own or run any type of business.

[@casualsuede]

@@label1877 not anymore, the complexity of cars, the extremely tight labor market, the fact that less young ppl interested in becoming mechanics and the fact that cars don't break down as much all lead to bad times at the car mechanics. There was recently a talk radio broadcast in my town of kc, where garage shops are closing because of these reasons.

[@label1877]

The golden age of easy car repairs is over. But repair shops in my area are booming.

[@niagarawarrior9623]

i just came across this channel, its very interesting! i dont intend on buying a gas station, or 7/11 or into any other franchise but this comprehensive list is interesting none the less, lots of things you need to be aware of that are addressed here. (i like that you put your major points in the ' show more ' section)

[@FranchiseCityOnline]

Thanks for visiting and appreciate the feedback!

[@BolofromAvlis]

Place I used to work for was in a great location ( very close to the interstate), but he made his money off the other businesses that were part of the station. he had a car wash on the lot as well, plus a check cashing business, a Noble Romans express, and a Subway, all in the same space. He told me he made no money off the actual gas sales, but he counted on all the other business inside the building to make up for that. He also had a pretty good grocery and tobacco sales. Biggest problem we had was with the local hoods ( trailer trash) and shoplifters, as well as the early morning drunks ( we were 24 hours).

[@kinggoten]

My friends uncle owns a similar setup, it is right on the highway(we don't have interstates in canada) there is no other gas sations within 30km etc... he makes most of his money of leases there is a tow truck company a lumber yard and a resturant at the location, he does well off the gas and such also but those would be 40-60% of his profits. **edit forgot to mention he is also the only gas station within 100km that has deisel so he gets all the semi traffic(or other big trucks) as well using his station almost exclusively.

[@jamesoncross7494]

You forgot landscaping. You need to plow in the winter too. Also the upkeep of the pavement. That's very expensive and you don't want anyone getting hurt which also brings up the insurance. Lots of maintenance too.

[@daniellereid7576]

Can you do a video on owning or starting a grocery store im from the south and Krogers Piggly Wiggly and Publix and H.G Hills, Comptons Bill Martin grocery store he recently died he was a pillar in the East Nashville Community for grocery needs What make grocery store thrive and what makes them fail ?????

[@FranchiseCityOnline]

Thanks for the comment! We have added grocery store franchises to the list as a future topic.

[@AnythingMike]

Danielle Reid you wanna open a store?

[@worldhello1234]

@6:16 Murica is strange. In Europe you have to enter the gas station to pay your gas.

[@elchaconaso]

forgot loss by employees thief customers,used to work as a cashier at a gas station.many of the employees would just take product from the store and not pay for it.also many people live of shoplifting,they travel station by station just taking whatever they can and resell it.

[@FranchiseCityOnline]

Very true. Thanks for the comment.

[@raymondj8768]

i owned a mobil gas station all i did was catch the kids robbing me all the time its unreal the systems they have worked out to steal from the station and the customers they carry crib sheets to keep track of how much the nail every person for then they put the cash in thier pocket towards the end of the day plus all the other things they steal cigeretts oil it really gets tirring haveing to be a detective if it wasent for my mechanic shop i would of starved DONT DO IT !!!

[@raymondj8768]

WELL IN NEW JERSEY WE DIDENT HAVE A LOT OF THOS BIG STORES INSIDETHEY WERENT FOOD MARTS SO THE SHELVES HAD OIL CIGGS FUELINJECTOR CLEANERS RADIATER STOP LEAKS AND MUCH MUCH MORE . WE WERE A FULL SERVACE GAS STATION SO THOSE KIDS ROBBED EVERYTHING AND THEY WERE SAPPOSED TO DROP MONEY IN THE SAFE EVERY TIME THEY GOT TO $400. BUCKS N THERE WAS ALWAYS ENVALOPES MISSING !

[@FranchiseCityOnline]

Thanks for the comment! @@dchance75702

[@rudysaleh9723]

I own a liquor store that does average 120k a month inside. We have no check cashing and no deli/pizza. 35% of sale is liquor. My partner wants to sell to buy a branded gas station with a solid location that does 80k inside and 120-130k outside (10 cents a gallon) with the land for 1.6-1.7m. My liquor store with the land cost me 880k when I bought it. Should I sell the liquor store and go for the station? What are pros and cons compared to a liquor store.

[@beuman0]

I knew someone who bought a gas station but destroyed it and build a furniture shop instead (in France) and it looks to be running well (also being next to a big road was a very good idea for this kind of business)

[@hydevanbrutton1516]

Hey Robert, love your input on this and you're right on the money. As an analyst and franshisee i agree. ( I don't make money of the gass and i refer to this as a "Penny business". I do net 2-4cents a gallon ( thats if i price it at 10cents above cost). Royalties kill, maybe i make a nickel per every bag of chips i sell. But if someone shop lifts, and employees steals ( heavy cash business)..... that eats into it big. Wanted your input on the Sunoco Aplus Franchise. Sunoco just sold 1,200 corporate owned stores to 7-Eleven ( w/ them agreeing on carrying their gas for 15year deal). They sold their very profitable turnpike stores, yet Retained a few hundred franchised stores and aloha stations. They say they are focusing on their wholse-sale business but the company had about 2-3 billion in debt and the sale pretty much wiped it out. In the east coast, Sunoco is big, popular, and the brand everyione goes to for the gas and stores. However the stores are company owned and they franchise/lease the business out. ( we've had one for 40years now). I wanted to see if you can gauge/predict/understand what their future plans might be cause its has me stumped. We're seeing Speedway coming into the markets ( since buying out Hess). Speedways in the midwest are known for large stores-formats like wawas. And we see wawas selling existings stores, buying prime realestates and building new wawa convince stores with gas/stations for $4-5million each. So now thats 7-eleven ( previous sunoco aplus stores), speedways, and new Wawas coming into the markets, how does Sunoco plan to compete with their existing Sunoco Aplus stores? I'm sure its time for them to renovate or come out with a new store prototype. or even make their stores bigger for being such a cult favorite in the region. when i talk to my sales rep they don't understand my analyst views/and questions to understand the future of the brand and direction. They say the brand sunoco is stronger then ever.... but that doesnt explain the Aplus ( mini market). would love to pick your brains on this.

[@FranchiseCityOnline]

Thanks for the comment! Hard to say what the rationale is there. Sometimes bad decisions are made to appease shareholders today - who knows. Long term play for those sufficiently capitalized maybe to wait until the smaller competition shrinks expanding marketshare? convert to electric? Sometimes corporations just make bad decisions and have short sighted plans!

[@neckarsulme]

bottom line is no one is going to sell a profitable business, more likely they are trying to unload a money pit.

[@FranchiseCityOnline]

Often true.

[@-SP.]

It depends my cousins sold their "profitable" gas station for almost $3 million because his parents were getting too old and wanted to retire.

[@Blakpepa]

So many brilliant points and I hope people will take this seriously! most sellers that I've come across were inexperienced in the first place running the business at a complete loss and always trying to provide fraudulent financials

[@FranchiseCityOnline]

Sad but true. Thank you for the comment.

[@sjtanman]

That's why you do your due Diligence BUYING 101 know your business and what your getting into..

[@retromaticmike5388]

As a consumer the gas stations I like are quik trip, speedway and a local hometown station that is as good or better than the other two notice all three are full service with minimarts

[@daniellereid7576]

Great advice i see gas stations and always wonder why they close or why they stay busy location

[@FranchiseCityOnline]

Thanks for the comment

[@waynecartwright7276]

In the uk since ive been buying fuel 65% percent of gas stations have closed. complying with tightening regulations and turnover are the main reasons. Oil companies in the uk have done the same and sold there stations . Shell have started putting in EV chargers as the future transport infrastructure.

[@FranchiseCityOnline]

Interesting - thank you for the comment!

[@eliubfj]

Great explanation, Thanks for providing this straight to the point no BS video!

[@FranchiseCityOnline]

Thank you for visiting!

[@andrewwalker6518]

Believe me. There's a LOT more BS. how about seeing your blood pressure double after a year and a half of management. How about high turnover rate even though you pay and treat your employees well. How about a 12000 dollar loss in grocery, cigs, and beer due to one single employee that was your partner? Keep these things in mind. The only thing that links pretty much ALL of the negative sides to owning/operating a convenience store is that it's all a risky and dynamic business that requires true professionals to oversee and maintain. Leave it to the big companies

[@concertscoastersandnitro725]

the profit margin on gas has been that way since at least 1995 when I worked at a gas station/service station...at a service station you made your money working on the vehicles that came in for service

[@HunterShows]

My grandfather had a richfield station. He didn't enjoy it. So he took a correspondence course and got out of that business.

[@JuneBuggJr]

they also do not refill the receipt printer at the pump so that you have to walk in to ask for a receipt and hopes you buy something.

[@wierdsmabob]

I read that Gas stations need to sell other goods to make a profit and perhaps have a coffee franchise counter to sell coffee and donuts.

[@FranchiseCityOnline]

Often true. Thanks for the comment.

[@InuKun2008]

I did a part time job this summer working as a gas attendant for the marina at the lake I live at. Only stocked ethanol-free 87 octane, but the supplier would make 72% of what the marina charged pr gallon plus delivery (which was about once every two weeks). Add taxes, electricity, insurance, credit card fees, and our hourly pay, and the marina owners only made 8 cents a gallon.

[@ht40]

Skip to 2:21, this guys loves to talk, and talk.

[@chaos817]

I can attest to this video as 2 major gas chains that were competitors right next to each other to my old high school has changed hands by different franchises at least 3 times in a decade.

[@snowblazed3442]

How is uptake of electric cars going to affect this?

[@FranchiseCityOnline]

If they become affordable it will def. impact the industry. It's highly speculative at this point though

[@snowblazed3442]

+Franchise City I have two electric cars, Nissan leaf, Hyundai Ionic and I think it's quite affordable now. I don't see petrol stations lasting more than 15 years.

[@FranchiseCityOnline]

I would welcome that scenario!

[@jimlambrick4642]

Oh just a little ... remember Kodak film... remember Blockbuster Video... well just like that. Don't buy a gas station and if you own one... get rid of it NOW

[@TagmakersCoUk]

www.rethinkx.com/transportation/ The most in-depth and comprehensive analysis of the pending doom of the ICE car (and the oil industry). Download the 80-page PDF report. A startling VIDEO summary is here: kzbin.info/www/bejne/mqa6d6GroKt9nrM

[@payamyazdi7672]

my dad used to own a gas station in Greensboro NC for over 40 years after working for him for a year I just decided to go back to school and become a x-ray tech.

[@MrTerenceMc]

The right Gas Station can be an incredible long term Real Estate play. My family has owned a single store for over 50 years and the most valuable return has been in the land itself. I know of one station that just sold its development rights for $31 Million.

[@FranchiseCityOnline]

Agree 100%. Getting in the market today however- different story. Most buyers watching this however will be leasing the land looking at bargain priced, distressed stations. Thanks for the comment!

[@J21665]

Can you look in Fiesta Auto Insurance and Tax Service franchise?

[@gebzed]

18 years single store gas station/convenience store owner. Texaco then Unbranded fuel. 1 million annual sales. Anyone need advice I will be glad to help. I need to make a video about it eventually.

[@nnedi7789]

#Eddie Gebhard, Hello, I would kindly appreciate a reply to my questions I wrote on this thread. Cheers🔹

[@tabularleech5142]

I live in a town where we have 3 towns really close together 50-50-20k pop sizes and on the main way to Phoenix az in one of these towns my grandpas brother owned a gas station back when the towns had like 30k-15k-5k pop sizes he sold it and now it’s a thriving huge local place that charges 2.39 for a large drink and gas is overpriced but somehow has more customers than the circle k’s texicos or Mavericks here. I think sometimes you just get lucky like in this case where right after he bought it a strip mall went in on the other side of the otherwise empty side of town and two huge track housing sections were put in during the 07 era. But ultimately my point is that know your market if you have a older crowed like here they will pay higher prices 2 1/2 higher on soda for instance to go to a clean well kept place rather than a circle k.

[@jasonl8326]

location, location, location

[@mwendia]

There is no good location, you can be robbed, shoplifted, scammed in any location. There is no such thing as good people. All are the same.

[@mwendia]

@Truth Hurts here's a gas station in your white neighborhood. kzbin.info/www/bejne/rmWrfYiLpat0pqM

[@cecilmitchell6073]

@Truth Hurts you a bum 😂

[@aagowani]

Thank you for the insight, I was considering buying one, now I know the downside. Thanks

[@Yewon2001]

He said it perfectly. Buying a gas station is like buying a job. I'll just add it's a 60+ hour a week job with little benefits. I would buy a gas station for a land

[@Yewon2001]

Land is a long-term investment. You wait until the neighborhood becomes gentrified and the land becomes so valuable it's worth the clean up costs

[@terriecotham1567]

So many words of wisdom the world needs more people like you Dave Ramso? spelling to help people out like Tom & Ray did on car talk for years

[@mrlover4310]

Got it I will not open one up.

[@calvin7874]

Thank you for sharing the information. I've learned something important for my future business.

[@TimZ007]

You forgot be ware of County Lines for Alcohol laws. I saw a ower sell his stores as the were on wet county lines before the change over to the county next to him went wet. Previously dry for ever? Alcohol sales droppped by 75% in the stores as there was no reason for customers to travel to them anymore. I sure the new owners had no idea and what they purchased them for was likely based off previous years sales.

[@isaac198428]

My car is very good on gas and I keep the tank above half at all times so usually spend about $19 bucks weekly at the gas station and pay with my debit card. It’s safe to say that my local store has never made any money off of me. I also don’t ever go inside the store except once a month to buy a money order for my rent and don’t buy snacks either. Lol

[@daniellereid7576]

I always wondered of a gas station why they close why they stay open why its a pro n con of investing i luv your channel keep the videos coming☺

[@FranchiseCityOnline]

Thanks for the comment!

[@SquirrelChupacabra]

Seems to be spot on. Working in the industry myself, it's quite cut-throat as well.

[@faffaflunkie]

The way a lease on a *gas station* is designed *the franchisee* actually _loses_ money selling gas. If you want to *throw away* a few thou- buy a timeshare- at least you can *enjoy yourself* for a week every year.

[@mohamedabdi4844]

faffaflunkie Hi there thank you for the video I’m planing to open gas stations in East Africa and I wanted expert to draft business plan and it’s very to get somebody who can analyse the petroleum market. Regards

[@stonksgoup69]

Now a days a gas station is not enough, you need to offer more to the customer such as a car wash, propane, or hot food services. When owning a gas station, your biggest concerns will be your employees. Since its a job where you come and go, many employees will steal cigarettes, confectionery items, money, etc. If anyone has a question please feel free to ask. Own a gas station/CarWash in Canada

[@nnedi7789]

#Min Kim , Hello, When your employee(s) “steal money, cigarettes”,...what do you do, are the employees fired, are you constantly hiring, are the police involved,...? Would you recommend leasing a gas station with a c-store, subway or car wash as to purchasing? Also, most banks in the USA don’t loan money for gas stations, are you financing or have financed? Were you provided with factual revenue from the previous owner? I kindly appreciate your reply. Cheers🔹

[@nitinagarwal706]

Very informative, number based picture showing the real picture of this Business....thanks really appreciated. Please share information on 1. Computer based franchises 2. Staffing based franchises 3. Non traditional Retail franchises 4. Non traditional Medical franchises 5. Top 10 service based franchises

[@henryostman5740]

All true. Are you a decent mechanic? Buy freestanding station cheap, rip out the pumps and tanks and fix cars, there is money in that. Another factor is discount chains, you might find a discounter right down the street that is charging less at the pump than you are paying the wholesaler, will he cut your rate? probably not.

[@GenericMerchant]

If you are a mean enough looking guy, have great customer service skills, and are looking to buy a job, they can be a good investment. I'd recommend trying to get your hands on the paperwork for gas, and in store items being purchased as opposed to accepting any sales figures that you get provided. As well as finding out who does the testing for the tanks, and get them to put something in writing confirming any claims made by the owner about the pumps, and tanks. Having a very good camera system with good archiving is a must. Putting a screen behind you, or beside you in your office, and having access to it on your phone will save you a fortune in stopping theft. TL;DR Most stuff that makes good money requires you have traits, or resources that few people have in the right combination for the task.

[@maybeiam3367]

Why would you buy a business without looking at their books first?

[@eidrag]

Hi, can you reduce room echo, like upgrade your mic from camera(use mic attachment). Love your content, but listening on earphone feels weird

[@FranchiseCityOnline]

We use a DR-05 Tascam to record however in post production bass was added. It sounds great on speakers however as I understand may not sound great on devices like cell phones. Future videos have taken this into account and mixed accordingly. Thanks for the comment!

[@Drumbeat52]

I work in a Gas/Convenience store that does not require prepay at the pump. I watch people drive off without paying for the gas and this is only increasing. Ever other station in town requires the customer to prepay for fuel, which requires many to enter the store. I know the losses can be written off the businesses tax return, but I do not see the logic of allowing the possibility of a drive off. A $50.00 drive off requires a multitude of sales to replace the loss. The local law enforcement will not deal with drive offs saying it is a contract between the business and customer due to the business authorizing the initial unpaid sale. The customers who realize they are untouchable continue to steal fuel. What is your take on this business model? Is it a good practice to allow non-prepays? We are a chain store business, but the bigger competitors do not follow this practice. I assume they know the pitfalls of the practice and have applied the other business model for profit reasons.

[@FranchiseCityOnline]

Thanks for the comment. I don't know if there is an ideal solution. From a purely financial perspective the question is whether store revenues generated from walk-ins are higher than drive-off losses, which are an increasing problem likely to get worse.

[@Drumbeat52]

I could have access to those figures and compare the results. I am amazed that the customer will get the authorization to pump the fuel, finish the transaction, stare you in the face, get in their car and drive away! I have had them wave at me as they drove off! The cameras are useless! I would not allow a shoplifter to walk out with unpaid merchandise, but I have to watch customers steal fuel. I am required to promote the Exon Rewards Card and have a Company Mission Statement I must follow, yet it is negated by fuel thieves. A poor economy promotes this behavior. Guess I am just venting. Thanks.

[@Drumbeat52]

I agree!

[@Drumbeat52]

I agree.

[@tbugher62]

I call B.S,where is this so called pump first station,I havent seen one of those in over 40 years.