Best Gas Franchise Opportunities for 2025

Gas station franchises have long been a cornerstone of the American business landscape, providing essential services to millions of drivers every day. As the demand for fuel, convenience store items, and quick-stop amenities continues to grow, investing in a gas station franchise presents a lucrative opportunity for aspiring entrepreneurs. But with so many options available, how do you choose the right franchise?

This article dives into the top gas station franchise opportunities for 2025, offering insights into each brand’s strengths, costs, and unique benefits. By understanding the industry’s potential and the standout franchises available, you’ll be better equipped to make an informed investment decision that aligns with your financial goals and long-term plans.

What is a gas station franchise?

Gas station franchises are businesses that sell gasoline in convenient locations as well as operate a convenience store. The franchisor typically provides brand recognition, operational support, and access to their supply chain for fuel and other products. Gas station franchises often include convenience stores or quick-service food options, adding additional revenue streams.

The gas station industry has evolved significantly over the years, offering diverse franchise models that combine fuel sales with convenience stores, fast food, and car services. Pioneering brands like Shell, BP, and ExxonMobil have set benchmarks in quality and customer experience. These models thrive on high customer traffic and recurring demand, making gas station franchises a reliable investment with proven scalability and a rich history of success in retail and fuel distribution.

It is important to note that most gas stations in the U.S. operate under a branded partnership model instead of a traditional franchise model. This gives the gas station owner the ability to utilize well-established brands while giving them more independence than a typical franchise model.

How to open a gas station franchise?

Opening a gas station franchise provides an opportunity to leverage a proven business model, trusted branding, and robust operational support. The process usually includes researching potential gas station franchises, obtaining financing, signing a franchise agreement, and completing necessary training programs. Franchisees must also familiarize themselves with local zoning laws, environmental regulations, and market trends. Resources like the International Franchise Association and franchise directories can guide prospective owners. Tools such as the Vetted Biz franchise opportunities tool simplify the journey by highlighting top-performing gas station franchises.

Gas station franchise market industry statistics

The gas station franchise industry is a multi-billion-dollar sector, fueled by consistent demand for gasoline, convenience items, and additional services like car washes. Estimates suggest that over 120,000 gas stations operate across the U.S., with a significant portion being franchise-operated. This highlights the robust growth and opportunity within the market for investors.

Gas station franchises are known for their high revenue potential, with some locations reportedly generating annual sales ranging from $2 million to $5 million, depending on factors like location and brand recognition. Additional income streams, such as convenience store sales and add-on services, significantly boost profitability.

Initial investments for a gas station franchise typically range between $250,000 and $2 million, depending on the franchise model, location, and size. The cost can increase by millions of dollars if the purchase of land is included in the investment. While this cost may seem steep, established brands offer strong support systems, making it a viable long-term investment for those entering the industry.

Payback periods for gas station franchises vary widely. Estimates indicate that franchisees can expect achieve payback within 5 to 7 years. Key factors influencing payback include operational costs, fuel margins, and traffic flow in the chosen area, emphasizing the importance of strategic site selection.

Industry experts often highlight the favorable sales-to-investment ratio of gas station franchises. With annual revenues often exceeding the initial investment within a few years, many investors find the sector attractive. However, ongoing expenses like fuel supply costs and maintenance must be factored into profit margins for accurate projections.

Metric – Estimated Average

Payback Period: 5-7 years

Sales-to-Investment Ratio: 2:1 to 4:1

Franchise Cost: $250,000 – $2 million

Pros

High Demand: Gas stations provide essential services, ensuring steady customer traffic.

Multiple Revenue Streams: Combine fuel sales with convenience stores, car washes, or food services for diversified income.

Established Branding: Partnering with well-known brands like BP or Chevron attracts loyal customers and adds credibility.

Franchise Support: Most gas station franchises offer training, operational guidance, and marketing support.

Scalable Business Model: Many franchise opportunities allow for expansion into multiple locations.

Cons

High Initial Investment: Start-up costs can range from hundreds of thousands to millions of dollars, depending on the brand and location.

Environmental Regulations: Compliance with local zoning and environmental laws can add complexity and costs.

Operational Challenges: Managing fuel inventory, employee schedules, and convenience store operations can be demanding.

Fluctuating Fuel Prices: Profit margins on fuel sales are often low and can be impacted by market price volatility.

24/7 Operations: Many gas stations operate around the clock, requiring constant management and staffing.

Gas station franchise segments

• Fuel-Only Stations Focus solely on selling gasoline and diesel fuel, typically with minimal on-site amenities, catering to customers seeking quick and efficient fueling services.
• Convenience Store and Fuel Combos Pair fuel sales with convenience stores offering snacks, beverages, and essential items, creating an additional revenue stream and attracting a broader customer base.
• Full-Service Stations Provide fueling, convenience stores, and automotive services like oil changes or car washes, offering a comprehensive experience for customers.
• Highway Rest Stops Located along major highways, these stations feature large fueling areas, restrooms, and dining options, catering to long-distance travelers.
• Alternative Energy Stations Specialize in selling electric vehicle (EV) charging, biodiesel, or hydrogen fuel, targeting environmentally conscious consumers and adapting to emerging energy trends.

5 best gas station franchises

Vetted Biz has compiled a list of the top 5 gas station franchises based on industry performance and market growth. This list highlights diverse franchise models, from fuel-only operations to full-service stations with convenience stores, offering investment opportunities tailored to varying markets and business strategies.

Circle K

Circle K is a globally recognized convenience store and gas station franchise with 6,063 locations in the U.S., of which 586 are franchised. Known for its broad product offerings, including fuel, snacks, and beverages, Circle K provides a convenient one-stop shop for travelers and local customers alike. Despite a -9% 3-year unit growth rate, the brand remains a popular choice due to its extensive support network and established reputation.

The Circle K franchise model is designed for entrepreneurs looking to enter the convenience and gas station industry with the backing of a trusted brand. Franchisees benefit from a well-structured system, operational training, and ongoing support. Financial requirements include an initial franchise fee of $12,500, an estimated total initial investment ranging from $309,000 to $2.74 million, and a 5% royalty fee. These factors make Circle K a scalable opportunity for ambitious investors. Check out this article to learn more about Circle K’s costs, fee, and FDD.

7-Eleven

7-Eleven is one of the world’s most iconic convenience store and gas station brands, known for its broad product selection, including snacks, beverages, and grab-and-go meals. With over 9,000 locations in the U.S., 7-Eleven offers franchisees a turnkey system, comprehensive training, and robust brand recognition to drive success. Its convenience-driven model caters to diverse customer needs and high-traffic locations.

The 7-Eleven franchise model provides a unique approach where the company covers expenses like real estate and equipment, simplifying operations for franchisees. Initial costs include an initial franchise fee that varies by location, with an average total initial investment estimated between $47,200 and $1.2 million. The royalty fee is structured as a split of the store’s gross profit, ensuring aligned interests. This franchise model offers a balance of support and profit-sharing, ideal for hands-on entrepreneurs. Learn more about 7-Eleven’s costs, fee, and FDD.

BP

BP is a globally recognized energy company, offering opportunities for gas station owners to brand their locations with BP or Amoco. Known for premium fuels and strong consumer loyalty, BP stations attract a wide customer base. Owners benefit from BP’s marketing support, high-quality fuel products, and modern technology solutions.

BP gas stations operate under a branded partnership model rather than a traditional franchise system. Owners maintain operational control while leveraging BP’s brand, fuel offerings, and marketing resources. BP provides support through advertising, 24/7 resources, and programs like BPme Rewards to enhance customer engagement. Financial arrangements, including fees and investments, are determined on a case-by-case basis.

Chevron

Chevron is a globally recognized energy company, renowned for its premium fuels and strong consumer loyalty. Gas station owners have the opportunity to brand their stations with Chevron, benefiting from the company’s high-quality fuel products, robust marketing support, and advanced technology solutions.

Chevron operates under a branded partnership model rather than a traditional franchise system. Station owners maintain operational control while leveraging Chevron’s brand, fuel offerings, and comprehensive support resources. This includes access to loyalty programs, mobile payment options, and a strong supply chain infrastructure. Financial arrangements, including fees and investments, are determined on a case-by-case basis.

Phillips 66

Phillips 66 is a well-established energy company with a strong presence in the fuel retail industry. They offer branding opportunities for gas station owners, providing access to their reputable brand, quality fuel products, and comprehensive support services. Partnering with Phillips 66 allows station owners to benefit from a trusted name and a range of resources aimed at enhancing business operations.

Operating under a brand licensing model, Phillips 66 enables station owners to maintain operational control while utilizing the company’s branding and support. To qualify for branding approval, stations must meet specific criteria, including paved driveways, a canopy with flat fascia over all multi-product dispensers (MPDs), a minimum of three MPDs equipped with card readers, a main ID price sign, free public restrooms, offering three grades of gasoline, LED under-canopy lighting, and professional employee apparel. These standards ensure a consistent and high-quality customer experience across all Phillips 66 branded locations.

Conclusion

Gas station franchises remain a cornerstone of the American economy, offering investors reliable business models and access to consistent demand for fuel and convenience items. With diverse options like Circle K, 7-Eleven, BP, Chevron, and Phillips 66, each brand offers unique strengths, from comprehensive operational support to flexible branding partnerships.

When selecting a gas station franchise, it’s essential to consider factors like initial investment, payback periods, and market trends. By leveraging the insights provided in this guide, prospective franchisees can align their investment goals with the right opportunity, paving the way for long-term success in the thriving gas station industry.