Buying a gas station or convenience store in Florida

A gas station with a store makes money two ways. Fuel brings people in, but the margin on each gallon is thin and moves with wholesale prices. Much of the profit usually comes from inside: drinks, snacks, beer and wine, tobacco, lottery tickets, coffee and prepared food, and sometimes a car wash or a small kitchen. Customers pay at the pump or register every day, so card fees are a real cost and handling cash is a daily job.

Many stations buy fuel under a supply agreement with a fuel brand or a wholesaler. It sets who you buy from, whose sign you fly, minimum volumes and how long you're committed. Some sellers own the land and others lease it, which changes the price and the risk. A convenience store without fuel is the same inside business without tanks and pumps.

The team is usually the owner, a manager and clerks on long shifts, often from early morning to late night or around the clock. Filling shifts, preventing theft and staying safe are part of the job.

• Strong inside sales compared with fuel, including food or coffee that brings people in on its own.
• A corner with easy access on a road people use every day, near homes, work sites or a highway exit.
• Tanks, lines and pumps in good condition, with clean inspection records from DEP and FDACS.
• A supply agreement you can live with: a reasonable remaining term, volume minimums you can hit, and no big payback if it ends.
• Register records that split sales by category and match supplier invoices and tax returns.
• A manager and core staff who have stayed for years and can run the store when you're not there.
• Pumps with current card readers and the required anti-skimming protection.

No single license covers a gas station, and most permits don't pass to a new owner.

• Storage tanks: the Department of Environmental Protection (DEP) regulates underground tanks under rule chapter 62-761. A new owner or operator must file a registration form within 10 days of the change, keep financial responsibility (usually pollution insurance) and name trained tank operators.
• Pumps: the Florida Department of Agriculture and Consumer Services (FDACS) inspects them for accuracy, and each card-reading pump needs at least two anti-skimming security measures (section 525.07).
• Food: most stores need an FDACS food permit, which can't be transferred (section 500.12).
• Beer and wine: a DBPR package license can transfer to you if the Division of Alcoholic Beverages and Tobacco approves your application (section 561.32). A temporary license can cover the wait, but you must pay cash for stock bought under it (section 561.331).
• Tobacco and vapes: retail tobacco and nicotine dealer permits are issued for one owner and location and can't be assigned (sections 569.003 and 569.32), so apply for both in your name.
• Lottery and SNAP: lottery retailer approval can't be transferred (section 24.112). The USDA says a new owner may not use the seller's SNAP permit or accept benefits until authorized. Apply early to avoid a gap.

• Environmental condition. Get a Phase I environmental site assessment (a review of the site's records and history), with testing if it flags risk, plus DEP inspection reports, tank ages, leak detection records and any spill reports.
• The supply agreement. Can you take it over, what volumes does it require, and what would leaving early cost?
• Security rules. Stores selling alcohol or tobacco that open any time from 11 p.m. to 5 a.m. generally need cameras, a drop safe, a silent alarm, a lit lot and clear windows (sections 812.171 and 812.173).
• Generator wiring. Stations built or substantially renovated since July 2006, and larger ones near an interstate or evacuation route, must be prewired for a generator (section 526.143).
• The seller's unpaid taxes. Buying more than half of a business or its assets can make you liable for the seller's unpaid state taxes, up to the greater of the price or the business's value (section 213.758). Get a Department of Revenue certificate of compliance before closing, and ask your attorney about also holding back part of the price.

• How much of your profit comes from fuel, and how much from inside the store?
• How old are the tanks and lines, and has the site ever had a reported leak or cleanup?
• What does your fuel supply agreement require, and how long does it have left?
• What's selling more inside, and what's selling less?
• How did the store do in the last hurricane, and does it have a generator hookup?
• Who works overnight, and how long have your main people been with you?
• Have you had any problems with skimmers, robberies or sales to minors?