Amortization-When an oil company offers up front cash to induce an
independent dealer to brand with that oil company. Normally, as long as the dealer continues to purchase
product from that company, the money does not have to be paid back. It is amortized over the term of the
contract, which is typically a ten-year agreement.
Backroom-Term used for
the service bays where cars are repaired.
Branded Fuel-Retail fuel sold under a major brand name (i.e. BP, Chevron,
Store-According to the National Association of Convenience Stores
(NACS), the definition of a convenience store is as follows: 1)While building size may vary significantly,
typically the size will be less than 5,000 ft; 2)Have off-street parking and/or convenient pedestrian access;
3)Extended hours of operation with many open 24 hours, seven days a week; 4)Stock at least 500 stock keeping
units (SKU s); and 5)Product mix includes grocery type items, and also includes items from the following
groups: beverages, snacks (including confectionery) and tobacco.
Canopy-The structure covering the pump
Company Controlled-see Lessee/Lease Dealer
Company-operated-see Salary Operation
CRIND-Card Readers in Dispenser. Originally a Gilbaco (manufacturer)
term, now used generically.
DTW-Dealer Tank Wagon-Wholesale price of gasoline delivered to a
retail outlet (transportation costs are included)
Retail-See Salary Operation
Direct Serve Dealer-see Lessee/Lease Dealer
Operations-Operations concerned with oil refining, transportation and
EPOS-Electronic Point Of Sale
Hypermart-A large retail or wholesale outlet selling durable goods (e.g.
appliances, hardware and electronics), soft goods (i.e. clothing) and groceries. Retail examples include Fred
Meyer and Wal-Mart Supercenters, while Costco is an example of a wholesale
Independent marketer-A petroleum retailer not affiliated with a major
Independent Refiner-A petroleum refining company that is not a major
Islands-pump islands typically have one or two MPD
Jobber/Wholesaler-A local company that owns or supplies properties with petroleum
products obtained from local supply points (wholesaler); or by a third party, non oil company(i.e.
convenience store chain such as Southland or Quik Trip) that sells gasoline, does not produce product, and
usually buys at the branded or unbranded rack or or is supplied indirectly. May or may not own and
operate retail outlets. Also known as a distributor or marketer.
Lessee/Lease Dealer-The dealer owns the business. A major or regional oil company
or a distributor owns the land and building (i.e. gas station) and leases it to a dealer. The dealer operates
the location and pays rent to the owner (as opposed to an open dealer that owns the property). This
arrangement gives the oil company or distributor a guaranteed supply outlet for their petroleum products,
pursuant to a supply contract. A typical lessee dealer operates 1-2 stores and does not wholesale gasoline.
Also known as company controlled, contractor-operated, and direct serve
Marketer-Any company or
person that retails (sells) motor fuels. May or may not sell branded gasoline.
Majors-Large multinational oil companies involved in all aspects of
oil production, including both upstream and downstream activities.
MPD s Multiple Product
Dispenser- many people believe these to be pumps. Most MPD s have six
hoses and dispense all three grades of fuel.
OPEC-Organization of Petroleum Exporting Countries, oil producing
and exporting countries that have organized for the purpose of negotiating with oil companies on matters of
oil production, prices, and future concession rights. Current members are Algeria, Gabon, Indonesia, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and
Open Dealer-An individual (who may own several properties that retail
gasoline products) owns and operates the building/facility/property (as opposed to a lessee dealer who does
not own the property). The typical open dealer operates between 1 and 10 locations. A major or regional oil
company, or a large local wholesaler supplies the facility directly. Open dealers can evolve into a
distributor if they achieve a large enough volume.
POS system-Point of sale computer systems, which typically include bar
code scanners, automated price look-up, and inventory tracking components
Phase I Environmental
the review of previous uses of the subject property and of other properties in the immediate vicinity, a site
inspection and report on findings by a qualified engineering/environmental firm. This report includes
recommendations for further testing, if deemed necessary.
Phase II Environmental
Review-Required if the
Phase I review uncovers potential environmental problems. Among others, procedures typically included at this
stage are subsurface soil and water sample tests.
PMPA-Petroleum Marketing Practices
Act. Federal law
offers certain protections, somewhat similar to franchise protection laws. Keep in mind that some oil
companies are technically franchisers, for example, Arco AM/PM, Texaco Star mart and Jackpot Convenience
Stores. Franchisers must comply with state and federal franchise laws as well.
Pooled Margin-Weighted average
cents per gallon from all fuel grades, usually with the exception of diesel.
Rack price-Price at which the majors and independent refineries sell
branded or unbranded gasoline to jobber/wholesalers. It is related to the commodity spot price, but adjusted
for transportation, overhead, and profit.
Retail price-petroleum price set by a marketer selling to the general
Salary Operation-A major or regional oil company owns the building/facility and
business. The company pays a salary to the managers/proprietors and usually produces and supplies petroleum
products to the location. Also known as company-operated and direct operating
Service bays-Where auto repair
is done at a service station.
Shrink-Inventory/merchandise loss resulting from theft, spoilage,
short deliveries, etc.
Spot Price-petroleum price on the commodity market. Rack price is based on
the spot price.
Starting gate-A modern design of positioning pump islands so that cars are
facing the c-store while refueling.
Stock keeping unit
(SKU)-A number given to each item (by category and brand) stocked in
a retail outlet for inventory and tracking purposes.
Store margin-Profit margin in convenience stores, typically ranging from 30%
Supply contract-The agreement a dealer makes with a supplier to secure
Terminal-A physical storage facility for petroleum products, typically
supplied through a pipeline from a refinery, where jobbers/wholesalers purchase and obtain gasoline at the
Throughput-Refers to the sale of gasoline or other petroleum products, and
is usually measure in gallons.
Traditional operator-A convenience store operator whose roots are in convenience
retailing rather than petroleum products. Gasoline operations were either de-emphasized or non-existent when
the company was founded.
Unbranded fuel-Retail fuel not
sold under a major brand name. Typically sold by an independent marketer under the marketers private label or
with no name attached.
Lease-While the 3 year oil company is typically treated as a long
term lease, because of the provisions in the PMPA, if the oil company does not own the land, a buyer must
look to who owns the land and what the terms of the underlying ground lease are. The oil company may have
only 5 years left on their land and therefore, have no obligation to the dealer beyond that 5
concerned with oil exploration and production
UST-Underground Storage Tanks. Term is frequently used in
Wholesale Sales-Sales of refined products to purchasers who are other than
ultimate consumers, i.e. sales for resale. The Energy Information Administration blends rack, bulk, and DTW
price to create wholesale price.
To prequalify for financing, download
the following forms and provide the following information and fax to (202) 478-1811 or email
Completed Tri-Merged Credit Report or Credit Authorization
2013 Business Financials (Seller / Borrower, if available)
2014 Year-To-Date Business Financials (Seller / Borrower, if available)
Last Three Years Fuel Gallonage (Seller / Borrower)
So what are you waiting for? You can convenienently apply online for a loan here or download the
prequalification form here. First time inquiries should inquire at firstname.lastname@example.org. Let us prove to you
that PetroMAC truly "pumps capital into YOUR C-store."