Gas station business
- Thread starter tran
- Start date
Make sure you have an accountant review the financials and ask for audited financial statements. Also, a good lawyer needs to review the sale trnasaction.
Make sure you ask the professionals lots of questions!
Make sure you ask the professionals lots of questions!
Tran, I didn't notice this post until now. I was looking into gas stations as an option too.
Here's one link of gas stations for sale in Canada: http://canada.businessesforsale.com/canadian/search/Gas-Petrol-Service-Stations-for-sale
Gas stations are not cheap and requires a lot of capital. Buying an established gas station is more expensive because of the goodwill and location. Gas stations are essentially a franchise. In urban/surburban locations a gas station can sell for $3-4 million. It's cheaper to start one from scratch where the average price is about 800k. In rural areas it could be as low as $300-400k but the revenue is obviously not high and you may not be able to recoup your initial investment as quickly.
Usually people who purchase gas stations have partners because it is obviously quite difficult to shell out that much initial investment, even with a bank loan. It is quite common to find several extended family members pooling their money to own a gas station. And once they have recouped their initial investment and they usually sell the gas stations for a tidy profit.
Here's one link of gas stations for sale in Canada: http://canada.businessesforsale.com/canadian/search/Gas-Petrol-Service-Stations-for-sale
Gas stations are not cheap and requires a lot of capital. Buying an established gas station is more expensive because of the goodwill and location. Gas stations are essentially a franchise. In urban/surburban locations a gas station can sell for $3-4 million. It's cheaper to start one from scratch where the average price is about 800k. In rural areas it could be as low as $300-400k but the revenue is obviously not high and you may not be able to recoup your initial investment as quickly.
Usually people who purchase gas stations have partners because it is obviously quite difficult to shell out that much initial investment, even with a bank loan. It is quite common to find several extended family members pooling their money to own a gas station. And once they have recouped their initial investment and they usually sell the gas stations for a tidy profit.
Tim Horton's Franchise information:
http://www.timhortons.com/ca/en/join/franchise_ca_program.html
Basically about $200k cash up front, the remaining 250-300k can be financed through loans.
Tim Hortons does take a franchise fee of 15% of your profits though, which is quite a lot. Most franchises only take about 5-8%, and the big fast food names take about 10%. But they do everything for you including acquiring the location, training the staff, hiring a manager, etc.
You have to go through a selection process to qualify for a franchise - they pick you, you don't pick them. I heard that the initial investment can be recouped within 1-2 years, and most people sell off their franchise after the license expires in 10 years for a tidy profit. You NEVER see an empty Tim Horton's, regardless of the time of day or weather, so you know it's a good investment.
For information about other franchises, you can check it out here: http://www.cfa.ca/MemberCategories.aspx - it is not a finite list as there are many companies not registered with them.
I am looking to start a franchise myself in the next 5-10 years, after establishing a strong line of credit to qualify for a loan that big. So if you're interested in a partner you know where to look. I have been researching all the different brand names and asking around about profit margins for about 2 years now. Of course Tim Horton's would be the best but there is a possibility that they won't select you and there could be a long waiting period just to score the initial interview.
http://www.timhortons.com/ca/en/join/franchise_ca_program.html
Basically about $200k cash up front, the remaining 250-300k can be financed through loans.
Tim Hortons does take a franchise fee of 15% of your profits though, which is quite a lot. Most franchises only take about 5-8%, and the big fast food names take about 10%. But they do everything for you including acquiring the location, training the staff, hiring a manager, etc.
You have to go through a selection process to qualify for a franchise - they pick you, you don't pick them. I heard that the initial investment can be recouped within 1-2 years, and most people sell off their franchise after the license expires in 10 years for a tidy profit. You NEVER see an empty Tim Horton's, regardless of the time of day or weather, so you know it's a good investment.
For information about other franchises, you can check it out here: http://www.cfa.ca/MemberCategories.aspx - it is not a finite list as there are many companies not registered with them.
I am looking to start a franchise myself in the next 5-10 years, after establishing a strong line of credit to qualify for a loan that big. So if you're interested in a partner you know where to look. I have been researching all the different brand names and asking around about profit margins for about 2 years now. Of course Tim Horton's would be the best but there is a possibility that they won't select you and there could be a long waiting period just to score the initial interview.
My dad is very happy playing shares to sustain his retirement income and is just waiting to hit the 10-year mark so that he can collect his Old Age Pension. In no way he would cough up half his retirement savings to invest in a Tim Horton's.tran said:
Well most banks will not give a loan of $300k to a new immigrant to start up a business, even one as secure as Tim Horton's. I did ask around at banks at what it would take to qualify for such a loan. I have no credit history, and it would take minimum 5 years to build up enough credit and credit history to qualify for such a big loan. Being a citizen actually does improve your chances at qualifying for a loan too, because it means less chance that you will default on it by leaving the country. You have to remember that I am single and hence have a single's income, unlike married couples who have dual income, so it is harder for me to build up equity and credit.
Tim Horton's also look at you as an individual. They want people with work experience and managerial skills and they won't just allow any Tom, Dick or Harry to open up a Tim Horton's just because they have the money. So it takes a while to build up your reputation within Canada.
Anyway my #1 goal is to own my own place first, so you better hurry up and get your real estate license if you want my commission!
dream16
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Get a real estate license to sell you a place? or to get you a place for rent? i have connections in canada and one of my relative is an agent. I have a solid credit score in US and many years of work exp + a thriving business in US and i am thinking of expansions into Canada (just got my canadian PR), so i might be looking towards this Tim Horton Thingy in Vancouver Downtownmediajunkie said: