How Much Does It Cost to Own a Gas Station Franchise in New York?

Owning a gas station in New York can seem like a great business opportunity to many entrepreneurs, with high fuel prices, their near omnipresence, plus the ancillary products and services they sell to their customer base.

Gas station franchises allow you to enter the industry with a support system in place, rather than starting your own from scratch.

Purchasing a gas station franchise isn’t cheap, but can pay off if you invest smartly in the right one. A gas station in New York can make between $4,500 and $14,500 daily, bringing in up to $30,000 net each month, depending on size, location, and product and service offerings (it’s often food, drinks, and alcohol sales that carry the highest profit margins—not gas).

This article will unpack the costs associated with different gas station franchises, explain whether it’s a good business opportunity, and go over everything you need to know to purchase the best gas station franchise for your situation.

Cost of popular gas station franchises

Investing in a gas station franchise can cost prospective gas station owners a significant amount. The initial cost can run between $45,000 to $2 million for a small gas station, although there are some less costly local chain options (you’ll likely earn less from them). There will also be ongoing costs like franchise fees, insurance, licenses, inventory, royalties, and many more, which could add another $300,000 per year.

Here’s how much you can expect to pay for different types of gasoline station franchises.

7-Eleven

There are more than 8,600 7-Eleven convenience stores located across the USA. Many of them sell gas. The company’s goal is to make franchising easy. 7-Eleven offers a turnkey solution that includes everything franchisees need to do business effectively. 7-Eleven franchise stores and gas stations are delivered in fully operational condition.

The initial cost to start a 7-Eleven C-store and gas station franchise is between $45,000 and $1.2 million.

Shell

Shell has gas stations across America and is one of the top gas station franchise businesses. Its brand is well-known, and many drivers seek out Shell gas stations.

Because of this, the typical costs of a Shell franchise are high. The initial investment is typically between $107,200 and $168,200. The annual franchise fee is $30,000, and you must maintain $60,000 in liquid capital.

Ike’s Love & Sandwiches

This popular American chicken sandwich franchise has a menu with many popular items. Many locations come with gas stations.

The startup cost can range from $271,400 to $745,500. The annual franchise fee is $50,000. A minimum net worth of $1 million is required.

Racetrac

Currently, this company has more than 500 locations in the United States.

The initial investment in this franchise is between $1.0 million and $1.4 million.

AMPM

AMPM has rapidly grown since it opened in the late 1970s. There are hundreds of these combined gas stations and convenience stores offering franchise opportunities throughout the U.S.

You’ll have to invest between $400,000 and $11 million in an AMPM franchise location. The cost is dependent on the site, its size, and how busy it is. You’ll also be required to maintain between $800,000 and $1.2 million in liquid cash assets. AMPM offers franchisees in-class sessions and hands-on training to run their gas stations and convenience stores effectively.

Circle K

Circle K gas stations and convenience store franchises are located in more than 20 states.

Circle K franchisees must make an initial investment of between $268,500 and $3 million if converting existing convenience stores, and $1.4 million to $4.8 million if constructing a new store. The ongoing annual franchise fee is approximately $25,000. Circle K offers third-party financing options to cover equipment costs.

Street Corner

Street Corner is a chain of boutique convenience stores typically located in busy urban areas. Many locations also sell gas. Street Corner was founded in 1988 and has been franchising since 1995.

An initial investment of between $80,000 and $2 million is required to purchase a Street Corner franchise. Franchisees are required to maintain a liquid net worth of $50,000. Financing is available from third-party sources. It can cover the franchise fee, equipment, startup costs, accounts receivable, inventory, and payroll.

Sunoco APlus

Sunoco APlus combined gas stations and convenience stores are located on the east coast of the United States and in parts of upstate New York and Ohio.

Getting a Sunoco APlus franchise is challenging. Candidates are evaluated based on their business experience, skills, financial strength, and personal ambition. The total cost for a Sunoco APlus franchise is relatively affordable, running between $25,000 and $600,000.

Dash In

Dash In provides franchising opportunities for its gas stations and convenience stores across America. It’s been franchised since 1979.

The franchise cost of a Dash In is between $119,650 and $517,750. The company offers financing options.

Express Convenience

Express Convenience has been franchising since the mid-1980s. The gas station and convenience store combos are located in the Midwest.

It takes an investment of between $86,300 and $361,000 to get an Express Convenience franchise. Franchise owners are provided with training on how to run their businesses. Financing is available for Express Convenience franchises.

On the Run

On the Run gas stations and stores offer typical convenience store products in addition to fresh snacks, quick meal options, health and beauty supplies, and more.

A total investment fee of $500,000 is required to get an On the Run franchise. You must have liquid assets available of at least $100,000. This is one of the lowest franchise costs we encountered in our research.

Extra Mile

ExtraMile’s convenience store and gas station combination locations offer Chevron gasoline coupled with retail food outlets. The ExtraMile franchise was established in 2007 and has more than 200 locations.

ExtraMile franchisees receive training from Chevron, advertising support, ongoing business advice, and mechanizing. The total investment to buy and manage an ExtraMile franchise is between $62,500 and $244,405.

This isn’t meant to be a comprehensive list of gas station franchise costs. Instead, it shows a range of options from well-known national chains, which usually require a higher cost of entry, and smaller regional players, which are typically less expensive.

The top factors that impact gas station franchise costs

Here are some of the biggest factors that affect the cost of running a gas station franchise. You must know them as you review franchise agreements and evaluate your options.

• Type of gas station: Full service, minimum service, or self-service. The less service you offer, the cheaper your operational costs.
• Location. A station in a busy, heavy-trafficked area will cost more than one in a less dense place.
• Licenses and permits. Some parts of the United States have more demanding licensing and permit requirements — and higher costs — than others.
• Type of facility. A complex business offering value-added services will cost more than a simple gas station.
• Product and service offerings. Inventory and payroll majorly impact the costs of running a gas station. The more quality products and services you offer, the higher the cost. However, it also increases how much you could earn.
• Number of gas pumps. The cost to open and operate a ten-pump station will be higher than a five-pump one. It could also allow you to sell a lot more gas.
• Hiring a franchise consultant, attorney, accountant, and financial advisor. Leveraging the services of these professionals will cost you, but it could also save you a lot in costly mistakes.
• Promoting and marketing the gas station. Stations in busy locations may sell themselves. Those in less busy ones may need promotions to attract customers.
• Furnishing and equipping the station. These costs will increase based on the size and complexity of the operation.
• Insurance. Insurance premiums for gas stations are high because of the risks associated with running these types of businesses. But consider the costs if you don’t have adequate protection.
• Staffing. Your gas station business is only as good as the people working there. You’ll want to hire the best people and train them well.
• Uniforms, shoes, and protective gear. You must ensure your employees look great, represent the brand well, and have everything needed to stay safe on the job.

Franchise gas stations: The opportunity

Gas stations and their corresponding convenience stores rank as one of the most popular and profitable franchise types in the United States. But is it right for you, and how can you stand out from the competition and earn a profit?

Before committing to a gas station franchise, you must understand how gas station franchising works, how much you can earn, and the risks involved. For example, if high gas prices have piqued your interest in buying a gas station franchise, you may be surprised to learn that when gas prices go up, margins for gas stations often go down, as owners try to dilute the impact the increased prices have on customers.

FAQs about owning a gas station franchise

How much does it cost to open a gas station franchise?

The answer to this question varies depending on the franchise you’re interested in opening. Other factors include the location, the type of gas station, and the lender you use.

What factors influence the cost of owning a gas station franchise?

The factors that influence the cost of owning a gas station franchise include location, services offered, the franchise you choose, the number of pumps, and the number of staff you need to hire.

How much can I earn owning a gas station in New York?

Owning a gas station can be profitable, but it can also be something that is equivalent to a standard 40-hour-a-week job. To make a lot of money from a single gas station you will have to run an efficient business with low costs and high volume. Alternatively, you can purchase multiple gas stations to leverage economies of scale.

What are the steps to buying a gas station franchise?

To purchase a gas station, you’ll need to find a franchise or business that is for sale, write a business plan and gather necessary documents, secure financing, and then ensure that all the details are in order before finalizing the deal. Note that there may be licenses and permits that you need to secure as well.

Can I get financing to purchase a gas station franchise?

Yes, financing is available to purchase a gas station franchise. You will need to meet minimum lender requirements and apply in order to secure approval.

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