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№ 01Buying & Selling a Business · Convenience Stores & Gas Stations · Canada-Wide

Buying or selling a convenience store or gas station

Convenience stores and gas stations are one of Ontario's steadiest small-business resale categories — but the store itself is really a bundle of separate agreements: the fuel operating licence, the lottery retailer agreement, the tobacco and vape authorization, none of which follow the business automatically. Each one has to be re-applied for or re-registered by the incoming owner.

Part of Retail & Consumer — see the family overview.

№ 01.1The Numbers That Drive the Deal

The numbers behind the deal

Every figure below is a typical Canadian deal-market pattern, not a valuation — use it to sanity-check what you're being told.

MetricTypical benchmarkUse this to
What drives the priceFuel-margin volume and in-store sales are weighed separately — a high-fuel-volume, low-margin site prices differently than a store-led location with modest fuel sales.Understand which revenue stream you're actually paying for before you get attached to a headline number.
Lottery and tobacco sales weightLottery commission and tobacco/vape sales are a meaningful, steady contribution to store revenue in this category, but neither agreement transfers automatically, so continuation is a diligence item, not a given.Confirm re-registration is realistic for the incoming owner before valuing that revenue as continuing.
Inventory is a real deal componentInventory — fuel in the ground, product on the shelf — is typically counted and settled separately from the purchase price, at or near closing.Budget the cash for the inventory count separately from your purchase financing.
Environmental exposure at fuel sitesUnderground storage tanks carry a distinct environmental diligence profile that a non-fuel convenience store simply doesn't have.Scope environmental review differently depending on whether fuel is part of the site.
1

The lottery and tobacco/vape authorizations do not follow the business on a change of ownership — the incoming owner applies fresh, and a gap in that approval is a real operating risk, not a formality.

2

Underground fuel storage brings an environmental diligence layer that a pure convenience store doesn't carry — it belongs in the review from the start, not added after an issue surfaces.

3

Inventory valuation methodology — who counts, how shrinkage and expired product are handled — is worth agreeing in the purchase agreement itself, since it directly affects what changes hands at closing.

№ 01.2The Deal, End to End

Six steps, from offer to ownership

The same sequence underlies almost every convenience store or gas station deal — what changes from deal to deal is how long each step takes, and which one becomes the bottleneck.

Reaching an agreement

01

Offer & conditions

The offer sets price and key terms — for a convenience store or gas station it should build in the conditions that actually matter from day one, not just financing.

usually 1–2 weeks
02

Agreement of purchase & sale

The APS fixes price, structure — asset or share — and closing date, plus the reps, warranties, and holdbacks that protect you if diligence turns up something different than promised.

1–3 weeks to negotiate
03

Key transfers open in parallel

TSSA fuel licence, OLG lottery agreement, Tobacco/vape authorization, Inventory count, Lease all start moving at once, on separate clocks — this is usually where convenience store or gas station deals are won or lost.

often the critical path

Getting to closing

04

Diligence & searches

Corporate, PPSA lien, and litigation searches confirm what you're actually buying; we chase down licence standing and records the seller doesn't always have to hand.

2–4 weeks, in parallel
05

Closing day

Funds, keys, and signed documents change hands, alongside any inventory count and interim authorizations that bridge the gap until final transfers are confirmed.

1 day, once conditions are met
06

After closing

We track final licence confirmation and the staff transition through to completion — nothing is left for you to chase once the deal is done.

1–2 week tail
Most single-location deals close in 30–60 daysLarger, multi-location, or regulator-heavy deals typically run longer.
№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in almost every convenience store or gas station deal — and it changes what you're buying, what you're taking on, and how it's taxed.

QuestionAsset purchaseShare purchase
What you buyThe store's assets — inventory, equipment, fuel systems where applicable, the lease, and goodwill.The shares of the corporation itself — everything it owns, and everything it owes.
Seller's liabilitiesGenerally stay behind with the seller's existing corporation.Generally come with the company, known and unknown.
Fuel operating licence (if applicable)New application or transfer with the fuel-safety regulator; equipment inspection typically required.Licence generally stays with the corporation, but the regulator is notified of the ownership change.
Lottery and tobacco/vape authorizationsDo not transfer automatically — the incoming owner applies fresh with each program.May be reviewed for continued good standing on a change of control, depending on the program.
The leaseNeeds the landlord's written consent to assign — often the pacing item for the whole closing.Usually stays in place, unless the lease has its own change-of-control clause.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical use in a convenience store dealThe default for most single-location convenience store and gas station deals.Less common — sometimes considered where a licence or agreement is genuinely hard to re-establish.
What you buy
Asset sale

The store's assets — inventory, equipment, fuel systems where applicable, the lease, and goodwill.

Seller's liabilities
Asset sale

Generally stay behind with the seller's existing corporation.

Fuel operating licence (if applicable)
Asset sale

New application or transfer with the fuel-safety regulator; equipment inspection typically required.

Lottery and tobacco/vape authorizations
Asset sale

Do not transfer automatically — the incoming owner applies fresh with each program.

The lease
Asset sale

Needs the landlord's written consent to assign — often the pacing item for the whole closing.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

Typical use in a convenience store deal
Asset sale

The default for most single-location convenience store and gas station deals.

We tell you which structure fits — before you sign anything.

№ 01.5Due Diligence, Both Sides

What gets checked before closing

Different lists depending on which side of the deal you're on — both matter for how smoothly closing goes.

If you're buying

  • Three years' financials, with fuel and in-store revenue broken out separately
  • Fuel-safety equipment inspection history and current standing
  • Status of the lottery, tobacco, and vape authorizations, and what's needed to re-register
  • Underground storage tank records, where fuel is sold
  • The lease, every amendment, and its assignment terms
  • PPSA and lien searches on equipment
  • Franchise or banner agreement, if the site carries a fuel brand
  • A clear inventory-count method agreed before closing
What we do: run the searches, chase the certificates, and flag anything that changes your price or your conditions.

If you're selling

  • Clean books, with fuel and store revenue separated
  • Lottery, tobacco, and vape authorizations in good standing, with no compliance issues outstanding
  • Fuel equipment inspection and any environmental records organized
  • Equipment lien payouts lined up
  • Lease estoppel and early landlord contact
  • An agreed inventory-count method for closing day
What we do: tell you what a buyer's lawyer will ask for — before they ask for it.
№ 01.6Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Other costs to budget for, depending on your deal: fuel-safety inspection and licensing fees, lottery and tobacco/vape re-registration fees, landlord's consent costs, a broker's success fee if the deal was listed, and inventory purchased at the count. We confirm all of these once we see your agreement.
Most deals start here

An owner-run business

A single convenience store or gas station with a straightforward lease and one owner on each side — the most common shape of this deal.

Start my file
A bit more involved

A larger or more complex deal

A multi-site operator, a location with significant environmental history, or a deal where the fuel brand agreement and its own consent process are part of the transaction.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.7The Landscape

Convenience Stores & Gas Stations, in context

Typical deal size
$100K–$2M
Typical closing
30–60 days
Usual structure
Asset sale

Typical patterns across Canadian deals — not a quote or advice; every deal is confirmed on its own facts.

№ 01.8Before You Ask

Common questions

Does the lottery agreement just carry over when I buy the store?

No. The existing retailer agreement doesn't automatically follow the business — the incoming owner applies fresh, and that application should be timed against your closing so lottery sales, and the commission that comes with them, don't lapse.

What happens to the fuel licence if I'm buying a gas station?

A new operating authorization is typically applied for, alongside a fuel-safety equipment inspection. Whether it moves as a straightforward transfer or a fresh application depends on the specifics of your site, and that gets scoped before you sign.

Is there anything different about diligence when a site sells fuel versus just convenience-store product?

Yes — underground storage tanks bring an environmental diligence layer a non-fuel store simply doesn't have. That review gets scoped into the deal from the start when fuel is part of what you're buying.

Who counts the fuel and inventory on closing day, and how is it valued?

That's agreed in the purchase agreement, not improvised at the till. Most deals count fuel and saleable inventory near closing and settle it as an addition to the purchase price, with the method for handling shrinkage or expired product spelled out in advance.

I'm selling a store with a beer or wine retail authorization. Does that add a step?

It can. Where alcohol retail is part of the business, the liquor regulator's own notification or transfer process runs alongside the fuel and lottery pieces — one more workstream on the same clock, not a separate deal.

№ 01.9Resource Register

Official links

ResourceOfficial link
TSSA — fuel safety
Fuel operating licences and equipment inspection
Visit www.tssa.org
OLG — retailer information
Lottery retailer agreements
Visit www.olg.ca
AGCO — liquor sales licensing
Where beer/wine retail applies
Visit www.agco.ca
Personal Property Security Registration (PPSR)
Equipment lien searches
Visit www.ontario.ca

Where we close convenience store or gas station deals

Ready to begin?

Tell us about your convenience store or gas station deal — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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