convenience store

[exit84]

I have a friend that is considering buying a convenience store in a rural area.
What pitfalls should he be on the lookout for???

[honker22]

Probably look at why the store is for sale. I hope its not the Downsville store, I heard its for sale.

[splicer]

Leaking gas tanks underground would be the biggest I can think of.

[Guisslapp]

Leaking gas tanks underground would be the biggest I can think of.

+1

[Dwayne From Minden]

I have a friend that is considering buying a convenience store in a rural area.
What pitfalls should he be on the lookout for???

The buried gas tanks as mentioned below -

The willingness and ability to sell lottery tickets -

The next line would be the ability to sell alcohol (district wet (high/low content) or dry - being able to sell package is a good way to increase your GP%

Access and egress -

[Choudawg86]

Leaking gas tanks underground would be the biggest I can think of.

contact me for the phase 1 on it . .. (or my company anyway)

[CARTEK]

Robbery and Assault w/ a Deadly Weapon

[AustinDawg]

Finding someone to keep them in crickets and minners.

Seriously, the leaking gas tanks is probably the biggest. There should be some inspection reports from the monitoring wells on file with the state. I would see if he could pull those and check the compliance history.

[rabiddawg]

Credit card fees eating away much of your profit on gasoline sales. I believe, as the price per gallon goes up the fees increase.

[techman05]

look at the things that keep the store open. Some friends of mine have 3 stores in and around Farmerville. They said if Pilgrim's Pride had folded up they would have been forced to close. The bulk of their beer, snacks, and cancer sticks were bought by those employees.

[PawDawg]

contact me for the phase 1 on it . .. (or my company anyway)

I remember hearing years ago that the EPA, LDA, or whoever is in charge of such things could go back on previous property owners for damages. Is this something you know about?

Interesting that the convenience store thing is being discussed. A store in WM which is mostly tobacco and liquor has pumps outside. The fact that they have gas pumps classifies them as a "convenience store" which prevents them from having a drive through. They are now weighing the cost of removing the pumps and tanks vs. profit from frozen drinks.

From a friend who owns a very successful store...biggest profit eater is theft by employees and public. They more the owners are able to work it themselves, the more they will make. Gas is not a big money maker. ATM's, ice vending, fountain drinks are good profit makers.

[Guisslapp]

CERCLA established liability for (1) the current owner, (2) the owner and operator at the time of the hazardous disposal or contamination, (3) the person who arranged for the disposal at the site, and (4) the transporter (in some circumstances). It is joint and several liability so the EPA and state can go after who they choose. If they only go after you, you can go after other potentially responsible parties to pay a share as well. (2) & (3) can sometimes be hard to prove and often they are broke. Thus (1) is the easiest to go after. Regardless, the abatement and containment costs can be very expensive and so can the legal costs.

[PawDawg]

CERCLA established liability for (1) the current owner, (2) the owner and operator at the time of the hazardous disposal or contamination, (3) the person who arranged for the disposal at the site, and (4) the transporter (in some circumstances). It is joint and several liability so the EPA and state can go after who they choose. If they only go after you, you can go after other potentially responsible parties to pay a share as well. (2) & (3) can sometimes be hard to prove and often they are broke. Thus (1) is the easiest to go after. Regardless, the abatement and containment costs can be very expensive and so can the legal costs.

Thanks. I heard this years ago when a very wealthy farmer was forced to pay for a cleanup on property he had sold to a not so wealthy farmer.

Couldn't there be a binding agreement in the sales contract that would allow for easier recovery from the previous owner. A possible deal breaker if he says "I ain't signin' that!"

[Guisslapp]

Thanks. I heard this years ago when a very wealthy farmer was forced to pay for a cleanup on property he had sold to a not so wealthy farmer.

Couldn't there be a binding agreement in the sales contract that would allow for easier recovery from the previous owner. A possible deal breaker if he says "I ain't signin' that!"

I don't see why not.

[marketdawg]

I ran a Cstore in my college years. The pitfall I would recommend looking out for is the hours your buddy is going to have to put in to be successful. A Cstore is a long "row to hoe" in that if you're not there then you better have a good friend or family member there (in business you have very few friends and family:icon_wink or your profits will walk...bottom line. Also look at the traffic count...location, location, location holds very true for Cstore.