which gas stations are franchises lawyer

What is the difference between a franchise and an independent gas station?

Feb 28, 2022 · With both the federal Petroleum Marketing Practices Act and state law at play, an experienced franchise lawyer, like Jeff Goldstein, can make all the difference in crafting a successful legal strategy . What to Do If You Suspect Your Service Station Franchise or Dealer Agreement Will Be Unfairly Terminated or Not Renewed

What are the best gas station franchises in USA?

14 Valley Lawyer AUGUST 2018 www.sfvba.org By reading this article and answering the accompanying test questions, you can earn one MCLE credit. To apply for the credit, please follow the instructions on the test answer form on page 22. By David Gurnick and Matthew J. Soroky Federal and California State Regulations Gas Station Franchises:

Is it legal to open a gas station as a sole proprietor?

Many gas stations are oil company franchises enjoy protection from termination without cause and non-renewal, in certain circumstances, under the Federal Petroleum Marketing Practices Act. Typically, the oil company owns the station and leases the premises to the franchisee under an agreement that calculates rent as a percentage of sales.

Why dash in gas station franchise?

Mar 22, 2012 · Oil companies supply fuel to the public through retail gas stations. Many gas stations are operated by independent franchisees. In a typical franchise, an oil company [like Arco (BP), Exxon, Shell or Chevron] leases the premises to the franchisee, lets the franchisee use the company’s brand, and agrees to sell gasoline to the franchisee for resale. Tens of thousands of …

What is a legal franchise?

A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol (the franchisor) and someone who seeks to use that identification in a business (the franchisee).

Can a franchisee sue a franchisor?

Franchisees can sue franchisors for a variety of reasons, such as non-disclosed operating costs and for opening too many franchises in a geographic area.

Are gas stations a good investment?

Because America's fuel demand is always increasing, that is why it is a good investment to buy a gas station makes a good small business investment. Our economy literally runs entirely on gasoline. Trucks are needed to transport goods and people need to drive to work.

What do I need to know about owning a gas station?

Questions to ask when buying gas stationAre there any environmental issues? ... Are there any tanks and pumps issues? ... Are the financial statements accurate? ... Are sales diversified? ... How much competition is there? ... How is the real estate being handled? ... Is the gas station franchised or unbranded?More items...

Can you walk away from a franchise?

Under most state laws, however, a franchisee who walks away from his franchise may be successfully sued by his franchisor for abandonment. Further, under many state laws, a franchisee who walks away from his franchise may forfeit some or all of the claims that he may have had against his franchisor.

Can I get out of a franchise agreement?

Franchisors have a vested interest to ensure their franchisees success, but they are generally not in the business of letting franchisees out of their contracts early without some form of compensation. A franchise agreement is a fixed term contract and there is no early right to exit unless the parties agree.Sep 22, 2017

Are gas stations profitable to own?

Currently, gas stations and their corresponding convenience stores are some of the most profitable businesses in the United States. Across the country, there are over 100,000 gas station/convenience stores which bring a cumulative of over $400 billion revenue each year.Feb 25, 2020

Where do gas stations make their money?

Retailers Make Very Little Selling Gas Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit.

What is the profit margin on gas station?

According to IBISWorld, gas stations make an average margin of just 1.4% on their fuel. That's far lower than the 7.7% average across all industries — and ranks beneath other notoriously low margin businesses like grocery stores (2.5%) and car dealerships (3.2%).Sep 12, 2021

Is it hard to run a gas station?

While starting a business can be a complex process, and opening your own gas station does have a few unique challenges you should be aware of, this shouldn't discourage you from feeding your entrepreneurial spirit. After all, the oil and gas industry has soared to over $180 billion in 2018.

Is owning a convenience store profitable?

Generally, convenience stores are profitable propositions. Owning your own business offers the opportunity to make more money than you could possibly make as an employee.

How do you invest in a gas station?

The Easy Way -- Stock Instead of buying an actual gas station, you can also invest in the gas station industry by purchasing a company that operates gas stations. Major oil companies operate gas stations, but their gas station operations are typically a small part of a larger pie.

Gas station franchisees and the federal petroleum marketing practices act

On behalf of Garner, Ginsburg & Johnsen, P.A. on Tuesday, February 5, 2013.

Understanding the Federal Petroleum Marketing Practices Act

Gas station franchisees enjoy protection from termination without cause and non-renewal, in certain circumstances, under the Federal Petroleum Marketing Practices Act.

Non-renewal of a franchise

Non-renewal of a franchise at the end of its term is more complicated. When an individual owns the station, in certain circumstances, the franchisor must offer to buy the franchisee out at a fair price. When a refiner owns the station, the franchisee has the opportunity to purchase the premises from the franchisor.

States laws may offer additional protection

In addition to federal laws, some states have laws that protect gas station franchisees, but the prevailing rules under the Petroleum Marketing Practices Act usually govern.

Who is the gas station franchise lawyer?

If you are interested in starting, selling, or purchasing a gas station franchise, Gas Station Franchise Lawyer Paul M. Stoddard has the skill and experience required to foster success. He helps clients avoid unfair termination or non-renewal and navigate the complex issues franchisors and franchisees often face.

How to contact Paul Stoddard?

To discuss your questions and how to reach your business objectives, call the Law Offices of Paul M. Stoddard at (760) 320-8345 and schedule a free consultation.

Who is Paul Stoddard?

Whether an independent or franchise convenience store, Business Attorney Paul Stoddard is able to help clients maintain compliance, resolve disputes, limit liabilities, and protect their business and financial interests.

Why franchise gas stations?

Gas stations are a great business to franchise because the demand for fuel in America is constant and not going anywhere. Our country literally runs on gas. People need to drive to work and trucks need to carry goods across country. Gas stations are a $250 billion a year industry. There are over 120,000 gas stations in the country. More than 80% also have a convenience store attached to them. This is a big business. Now is a great time to claim a piece for yourself.

What is an independent gas station?

Gas stations typically fall within the category of “franchised” or “independent” station. Franchised gas stations are owned and operated pursuant to a Franchise Agreement with a national supplier such as Exxon, BP, and Sunoco. Independent stations are not supported by any national supplier and, basically, sell “unbranded” fuel procured ...

What are environmental concerns?

Environmental concerns are critical, as any environmental contamination (especially if discovered after you buy the gas station) will require expensive remediation that may shut down or significantly limit the future operations and profitability of your station.

What is an environmental site assessment?

An environmental site assessment, also known as a Phase I study or “ESA,” is a preliminary investigation and evaluation of a property’s “environmental history.” Typically viewed as the first step in the “environmental due diligence” process, ESAs focus on the documented history of a property and prior issues of contamination. ESAs typically do not include soil samples or testing but may uncover serious incidents of prior contamination. If the Phase I study indicates the potential existence of prior contamination, additional studies may be warranted.

Is gas station investment a risk?

Investing in any business carries multiple risks, but gas stations pose distinct risks. More than just about any industry, the success of your station depends on traffic. Know the long-term plans for the area you want to open in: is it going through a lot of construction? Long building projects could hurt your business by blocking access to your station.

Where is Chevron gas station?

Chevron Gas Station. Chevron Corporation, founded in 1879 and headquartered in San Ramon, California, is an American multinational energy corporation and one of the successor companies of Standard Oil of California and Gulf Oil. The company is present now in more than 180 countries.

How many gas stations does Shell have?

Shell Oil Company is the United States-based wholly owned subsidiary of Royal Dutch Shell, a transnational corporation, which is amongst the largest oil companies in the world with over 45,000 gas stations in more than 70 nations around the globe.

Where is BP located?

BP (formerly The British Petroleum Company plc and BP Amoco plc), founded in 1909, is a British multinational oil and gas company headquartered in London, England. It is one of the world's seven oil and gas "supermajors" which operates in 70 countries worldwide and has over 200 locations in the US. BP has over 25 years operating experience within ...

Where is Phillips 66 located?

The Phillips 66 Company, headquartered in Westchase, Houston, Texas, is an American multinational energy company which debuted as an independent energy company when ConocoPhillips executed a spin-off of its downstream and midstream assets. The company is engaged in producing natural gas liquids (NGL) and petrochemicals.

How many 7-11 stores are there?

7-Eleven is an international chain of over 66,000 convenience stores operating in 17 countries worldwide. 7-Eleven helps Franchisees tailor their businesses “to the individuality of their selected market bases and customer needs,” and that means happier customers that come back. Services include obtaining and bearing the ongoing cost of the land, building and store equipment, record keeping, bill paying, and payroll services for store operations fees, and financing for all normal store operating expenses. 7-Eleven’s corporate office even pays for the franchisee's water, sewer, gas, and electric utilities.

What is the next step in starting a gas station?

Forming a business entity is the next step in starting a gas station. However, before forming your business structure, make sure and consult with your attorney to see which type of business is best for you (limited partnership, sole proprietorship, limited liability company, or corporation).

What are the risks of a gas station?

A gas station is a business known for having a lot of financial risks like robbery, injury (employee or customer), equipment malfunction and property damage. In any of those unfortunate situations, you want your gas station to be covered to protect your assets. 8. Marketing.

What is phase 1 assessment?

The Phase 1 Assessment is a requirement of the SBA (pg 384) if you want to obtain a loan for a gas station business. It will allow you to back out of a purchase agreement if the assessment is unfavorable and your agreement includes an environmental contingency clause.

What is the phase 1 environmental assessment?

Environmental Assessment. Business owners looking to open a gas station need to obtain a Phase 1 Environmental Assessment of their location. This assessment must be completed by an Environmental Professional (geologist or engineer) who will determine the environmental history of your location and adjacent properties.

Who is Jake Pool?

As a former restaurant manager in Dallas, Cincinnati, and Los Angeles, Jake Pool has over a decade of experience kickstarting, operating, and marketing small businesses. His prowess for understanding a company’s needs from a customer’s perspective allowed him to transition into content creation. He’s written copy and content for hundreds of clients from companies all over the world.

Does stopping at gas station mean you're going to buy anything other than gas?

As you know, just because you stop at the gas station, it doesn’t mean you’re going to purchase anything other than gas. But as we learned, your highest profit margin is not on your gas. It’s in the convenience store. To entice potential customers, offer promotions to get them to spend more money. Punardreep suggests,

Does the Small Business Administration lend money to gas stations?

The Small Business Administration has loan programs to help small businesses, like gas stations, get started. They won’t lend money directly to you, the business owner. Instead they work with other institutions to reduce their risk on a loan by backing it by as much as 85%.

Understanding The Federal Petroleum Marketing Practices Act

• Gas station franchisees enjoy protection from termination without cause and non-renewal, in certain circumstances, under the Federal Petroleum Marketing Practices Act. If the franchisor or refiner tries to terminate the relationship without good cause, the franchisee may obtain an injunction in federal court against termination. Good cause means that the franchisee has not c…

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Non-Renewal of A Franchise

States Laws May Offer Additional Protection