6 Factors to Consider when Buying a Gas Station in Ontario

Buying a gas station is a significant investment that requires careful consideration of various factors. In Ontario, there are specific laws and regulations that govern the operation of gas stations. Here are six key factors to consider when buying a gas station in Ontario:

  1. Compliance with Ontario Laws and Regulations – Ontario has strict laws and regulations governing the operation of gas stations, including environmental laws, health and safety regulations, and advertising standards. Before buying a gas station, it’s important to ensure that it is compliant with all applicable laws and regulations.
  2. Franchise vs. Independent Ownership – Gas stations can be either franchised or independently owned. Franchised gas stations are subject to additional legal requirements and restrictions, such as franchise fees and obligations to the franchisor. Independent gas stations may offer more flexibility, but also require more work in terms of operations and compliance.
  3. Location – The location of a gas station is a critical factor in its success. Consider factors such as proximity to major highways, local zoning laws, and competition from other gas stations in the area.
  4. Environmental Compliance – Gas stations are subject to strict environmental laws and regulations in Ontario. Consider factors such as the age of the gas station, the condition of the underground storage tanks, and any potential environmental liabilities associated with the property.
  5. Financial Performance – Review the financial performance of the gas station before making an investment. Consider factors such as revenue, expenses, profit margins, and any outstanding debts or liabilities.
  6. Licensing and Permits – Gas stations in Ontario require various licenses and permits to operate. These include licenses for the sale of gasoline, alcohol, and tobacco, as well as permits for signage and advertising. Make sure that all necessary licenses and permits are in place before making an investment.


Buying a gas station in Ontario is a significant investment that requires careful consideration of various legal and financial factors. By reviewing compliance with Ontario laws and regulations, ownership options, location, environmental compliance, financial performance, and licensing and permits, you can make an informed decision and ensure a successful investment.

Hiring a lawyer when buying a gas station in Ontario is crucial to ensure that your investment is protected and legally sound. A lawyer can assist with various aspects of the purchase, including reviewing and negotiating contracts, conducting due diligence on the property, ensuring compliance with Ontario laws and regulations, and advising on any potential liabilities or risks associated with the purchase. A lawyer can also provide valuable guidance on ownership options, licensing and permits, environmental compliance, and financial performance, helping you make an informed decision and avoid costly mistakes. With the complex legal and regulatory landscape surrounding gas stations in Ontario, hiring a lawyer is an essential step to protect your investment and ensure a successful transaction. If you have any questions, please contact us at info@falconlawyers.ca or 1-877-892-7778.

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