As an investor, you may be thinking about owning a franchise to build wealth and diversify your asset portfolio. Vehicle usage has risen steadily over the past 50 years. Owning a service station has great income potential. As you research and plan, here are three things to know in advance.

Location

Location is crucial to the success of your operation.  Visibility from the road, average daily traffic and demographics factor heavily in potential profit. You should also consider competitors in the vicinity. If your service station is the only one around for miles, you could make a lot of money. If there are several direct competitors, it might be harder to generate the revenue needed to stay open. Consider the neighborhood. Will you be in an area where many customers would be inclined to bring their vehicles by for repairs?

Permitting

You will need to secure permits to build a service station and operate it. Carefully consider all the services to be provided. Will customers also be able to fill up on gas and wash their vehicles at your business? An experienced, certified contractor will be fully knowledgeable about permitting requirements, such as a provider of service station construction California. Violation of local regulations could be detrimental to your project and business.

Coordination

You’ll want to work with a qualified contractor. Make sure that the bidder has properly accounted for all project requirements. Don’t just go with the lowest bid. Mistakes in the bidding process can lead to delays and change orders that eat into profits. You also need to contemplate which companies to partner with in terms of franchising and sales. Major corporations usually have conditions that will impact what you can do with your service station.

Owning and operating a service station can generate significant income. It comes with risk and great reward. Thorough planning and location selection, hiring the right contractor and choosing the right companies to partner with can increase your odds of success.