What should I check in a truck stop’s brand and fuel-supply agreements before buying?
Before buying a branded truck stop, collect every agreement for the fuel brand, the commercial diesel network, fleet-card acceptance and any restaurant franchise. Note each term, whether the other party must consent to a sale, and what ends if one agreement ends. Ask your lawyer to read them together.
A branded travel centre may run on several contracts at once. The fuel brand, the network that handles commercial diesel and fleet cards, and a restaurant franchise may each have their own paper. A buyer is not just buying a site. They are stepping into, or replacing, each of those arrangements.
Gather every agreement
Ask the seller for a full list and for complete copies, including amendments and side letters. Include equipment leases, signage arrangements and card-processing terms. A missing document is a question to put to the seller in writing. For the fuel side alone, see what to check in a fuel-supply agreement.
Term, renewal and consent
For each agreement, note when it ends, whether it renews and what the other party can do if the business changes hands. Some require written consent. Some let the other party set new conditions for the buyer. Ask early, because the answer may shape your timeline and your financing, and your lender may want to see the consents too.
How the agreements fit together
The agreements may depend on one another. A fuel brand might require a certain restaurant, or a card network might apply only to a branded site. Ask what happens to the others if one ends, and whether a default under one counts as a default under another. A lawyer can read them side by side and flag the links you might miss.
What you would be inheriting
- Unpaid amounts or disputes with the brand, the network or the franchisor.
- Equipment, signage or upgrades the site must keep up.
- Reporting duties, audits or minimum purchase commitments written into the paper.
- Who owns the customer accounts if the brand relationship ends.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check in a gas station’s fuel supply agreement before buying?
- Expert answerWhat licences and health approvals should I check before buying a food truck in Canada?
- Expert answerCan I stop a buyer from taking my customer list and walking away?
- Expert answerIs buying out a partner the same paperwork as buying a whole company?
Due diligence
Financing
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 02Parkland CorporationCompanyRetail Fuel Stations
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 04Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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