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The Business Exchange of Florida, in association with Florida Business Brokers LLC, has helped thousands of entrepreneurs and investors sell and purchase businesses in the Sunshine State. We specialize in small to multi-million-dollar companies and commercial real estate investments. For more details, call us now or drop us an email to schedule an appointment.

Read on for the 5 Factors to Consider When Buying Gas Stations for Sale in Florida.

The gas stations industry in Florida has seen a 3.3 percent growth over the last five years. The $34-billion sector is thriving in the Sunshine State. The main reason behind the high demand for fuel is the influx of tourists all year round. In 2019, Florida hosted a record of 131.4 million travelers. The more travelers, the higher the demand for gas stations and convenience stores.

While the number dipped this year due to COVID-19, it doesn’t paint the picture of the future trends, which are highly positive, as anticipated by the industry experts. In fact, now is a perfect time for investors to step into the market and buy a gas station for sale in Florida to earn high returns in the future.

Here are some essential things that you should consider when buying a gas station for sale in Florida to get the best returns:

5 Factors to Consider When Buying Gas Stations for Sale in Florida

Read on for the 5 Factors to Consider When Buying Gas Stations for Sale in Florida

Factor#1: The Right Location

The location of your gas station will play an instrumental role in the success. Choosing the right area can largely influence the overall profitability of your business. You must take a multi-criteria approach to find a gas station for sale in the optimal location to maximize sales. It’s essential to understand the demographics and check out the competition in your area.

The traffic pattern also plays a huge part. If your gas station is located near a highway or densely populated area, you can expect an influx of customers on your pump and c-store. On the other hand, if you pick a location near a busy intersection where customers may experience difficulty accessing your facility, you may not find much success.

When choosing a location, you also need to keep foresight. Check if there are any construction projects planned near your gas station that can make it difficult for potential customers to access your gas station. Pick a safe location that will allow you to generate excellent profits in the foreseeable future.

Factor#2: Franchised vs. Independent Operations

Read on for the 5 Factors to Consider When Buying Gas Stations for Sale in Florida

You must determine whether you want to buy invest in a franchised or independent gas stations. A franchised gas station is owned and operated under a Franchise Agreement with a brand like BP and Exxon. On the other hand, an independent gas station isn’t affiliated with any brand and can purchase fuel from regional suppliers of their choice.

Franchise gas stations offer many benefits. For starters, you get brand recognition, which results in free advertisement and marketing. You also access to support and training to run your gas station operations effectively. It’s a safer investment with lowered financial risk as you leverage an established national supplier’s expertise and experience.

However, there are also some disadvantages that you should factor in when deciding to opt for a franchise gas station. For instance, you also have to abide by their rules and regulations. You are restricted from buying gasoline from suppliers other than your franchisor. You have to pat royalties to your franchisor, which can eat away your profit margins.

Factor#3: Does It Have a Convenience Store?

Read on for the 5 Factors to Consider When Buying Gas Stations for Sale in Florida

It’s crucial that you only purchase a gas station that comes with a convenient score. If you’re new to the gas station business, keep in mind that you earn most of your revenue via c-stores. Gas stations operate in razor-thin margin and sizeable operation costs, so you must have additional revenue from c-store to cover your expenses and generate a profit.

Consumers prefer gas stations that offer fuel as well as other necessities to save time. We have seen the year-over-year growth of the convenience stores in Florida due to the high demand for these one-stop-shops. Therefore, having a gas station with a c-store will bring more revenue to your business and give you a competitive advantage.

Factor#4: Does the Seller Own the Pump Equipment?

Read on for the 5 Factors to Consider When Buying Gas Stations for Sale in Florida

The value of pump equipment and machinery constitutes a significant part of a gas station’s total worth. These assets are critical to run the day-to-day operations, so you must communicate with the seller in advance to determine whether the gas station for sale comes with pump equipment and tanks or you’d need to make an additional investment.

If the seller was operating via a franchise model, the pump equipment and machinery might be the parent company’s asset or lease. Therefore, you must clarify the terms and conditions and learn whether the sale deed includes the asset transfer before sealing the deal, so you don’t end up overpaying for the deal.

In case you own the assets after the sale, you need to check the repair history of pumps, tanks, and other equipment to evaluate their useful life and market value. Moreover, you need to ensure all the assets are compliant with environmental laws and regulatory requirements. Buying a gas station for sale from a trusted platform minimizes the risk of fraud.

Factor#5: Financial and Legal Aspects

Read on for the 5 Factors to Consider When Buying Gas Stations for Sale in Florida

Buying a gas station for sale requires an upfront capital investment, especially if you’re buying a business that has been in operations for a long time and situated in a good location. Therefore, you must figure out how to fund the investment. In addition to the purchase price, you need to consider the working capital of the business.

If you’re planning to buy a gas station for sale from a trusted broker, you may qualify for a visa that will allow you to finance the deal more conveniently. Using a trusted channel will minimize the legal risks and ensure that you don’t encounter fraud, for instance, problems resulting in undue financial obligations in the future.

Final Words

Doing your homework and keeping these considerations in mind will help you capitalize on the best investment gas station deals available in Florida. Buying a gas station business with a c-store will enable you to generate substantial profits. Work with an experienced broker like TBX Florida to ensure you find the best gas station businesses for sale in Florida.