Gas Station Due Diligence Checklist

Gas station due diligence checklist

• Environmental: Phase I ESA; Phase II if indicated; UST records; prior releases/spills
• UST & compliance: registrations, monitoring, tests, repair history, closure documentation
• Real estate/lease: rent schedule, escalations, options, assignability, SNDA/estoppels
• Title/survey: access, easements, encroachments; ALTA survey if needed
• Contracts: fuel supply agreement, brand/FRN terms, equipment leases, service contracts
• Financials: inside sales, fuel volumes, margins, tax returns (as applicable), POS summaries
• Site & systems: dispensers, tanks, canopy, HVAC, car wash, deferred maintenance

Gas station due diligence checklist

• Environmental: Phase I ESA; Phase II if indicated; UST records; prior releases/spills
• UST & compliance: tank tests, monitoring, registrations, repair history, closure docs
• Title/survey: easements, access, encroachments; ALTA survey if needed
• Real estate or lease: rent schedule, escalations, options, assignment terms, SNDA/estoppels
• Fuel supply: agreements, branding requirements, imaging, volume commitments (if any)
• Financials: inside sales, fuel volumes, margin trends, expenses, payroll, vendor statements
• Equipment: dispensers, tanks, canopy, POS, refrigeration, service bays (if any)
• Compliance: permits, inspections, fire marshal, weights & measures, tobacco/alcohol if applicable

For quick definitions (UST, Phase I, SNDA, AADT, etc.), see the Gas Station Glossary.

Gas station due diligence checklist

• Environmental: Phase I ESA; Phase II if indicated; UST records; prior releases/spills
• UST & compliance: tank tests, monitoring, registrations, repair history, closure docs
• Title/survey: easements, access, encroachments; ALTA survey if needed
• Real estate or lease: rent schedule, escalations, options, assignability, SNDA/estoppels
• Fuel supply: supply contract terms, brand requirements, image standards, assignment rules
• Financial verification: inside sales, fuel volumes, margin trends, vendor statements
• Compliance: permits, inspections, life-safety items, ADA, code issues

Gas station due diligence checklist

• Environmental: Phase I ESA; Phase II if indicated; UST records; prior releases/spills
• UST & compliance: tank tests, monitoring, registrations, closure documentation
• Title/survey: easements, access, encroachments, ALTA survey if needed
• Real estate or lease: rent schedule, escalations, options, SNDA/estoppels, assignment terms
• Fuel supply agreement: term, pricing, branding obligations, incentives, renewal/termination
• Financials: inside sales, fuel volumes, margin history, expenses, payroll assumptions
• Operations: staffing plan, equipment condition, maintenance, warranties
• Regulatory: permits, inspections, fire/safety, compliance history
• Site & condition: canopy, MPDs, tanks, lines, paving, drainage, signage

Start diligence early—environmental and lease items often determine the real timeline.

Gas station due diligence checklist

• Environmental: Phase I ESA; Phase II if indicated; UST records; releases/spills
• UST & compliance: tank tests, monitoring, registrations, closure docs
• Title/survey: easements, access, encroachments, ALTA if needed
• Real estate: leases, rent escalations, options, SNDA/estoppels
• Fuel supply: contract terms, brand requirements, volume commitments
• Financials: inside sales, fuel volumes, margin, payroll, vendor costs
• Equipment: canopy, MPDs, tanks, POS, refrigeration, HVAC condition
• Permits: local permits, health/food, alcohol/tobacco compliance where applicable
• Insurance: required coverages and loss history (if available)
• Transition: employee/staffing plan, training, vendor transfer

For definitions (UST, Phase I/II, estoppel, SNDA, etc.), see the Gas Station Glossary.

1) Asset & operations overview

• Store + fuel volumes: recent monthly inside sales, gallons by grade, margins, and any branded incentive programs.
• Staffing & systems: POS reports, inventory controls, lottery (if applicable), and cash handling procedures.
• Licenses: fuel, tobacco, alcohol (if any), lottery agreements, and local business tax receipts.

2) Real estate and lease review

• Survey, legal description, and access: easements, shared drives, curb cuts, and any pending DOT changes.
• Leases (if leased): term, options, rent escalations, CAM, insurance obligations, repair clauses, and assignment language.
• Title items: liens, restrictive covenants, encroachments, and recorded agreements that affect use.

3) Environmental and tanks

Fuel deals live or die on environmental clarity. The typical baseline is a Phase I ESA, followed by targeted testing if needed. For UST/AST systems, confirm:

• Tank age, construction type, leak detection method, line testing records, and compliance history
• Any prior releases, open cases, remediation documents, and closure letters
• Dispenser condition, spill buckets, overfill prevention, and maintenance logs

4) Financial verification

• Tax returns / P&L alignment: compare POS, bank deposits, and supplier statements.
• Fuel supply statements: brand statements, rack pricing method, freight, and rebates.
• Expense audit: utilities, merchant processing, insurance, repairs, payroll, and shrink.

5) Lender / buyer readiness

To keep closings smooth, package diligence the way underwriters expect: clean trailing 12, current rent roll (if applicable), compliance records, and a clear summary of any issues with remedies and timelines.

Common friction points (and quick fixes)

• Missing UST records: request from the regulator, operator, and service contractors; rebuild a compliance binder.
• Inconsistent reporting: standardize POS exports and match to bank statements for the last 12–24 months.
• Lease ambiguity: clarify assignment/consent and repair obligations early — before term sheets.