Does the Seller Own the Pumps and Tanks? — Mina Gorgyos
- minagorgyosusa
- May 22, 2022
- 1 min read
Station pumps and fuel tanks serve as the most critical assets that will affect the day-to-day operations and profitability of your business. Not every seller of a gas station owns the pumps and tanks, which may be owned by the national franchisor (for franchised stations) or the property owner (where the gas station is located on leased property).
If you are evaluating the purchase of a particular gas station, you must determine:
Who owns the “pumps and tanks”;
Whether or not the sale includes the transfer of the “pumps and tanks”:
If the property where the station is located is leased; the terms of the lease including the remaining terms, rent, and whether or not the landlord will consent to an assignment of the lease;
What is the repair history of the pumps and tanks; the remaining useful life of these critical assets and whether or not the pumps and tanks comply with current regulatory requirements.
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