Texaco is one of the most recognized branded fuel marks in the country, supplied today through Chevron's branded wholesale network. For buyers and sellers, that brand carries real weight. A red star canopy signals fuel quality and consistency to drivers, which supports volume at the pump. Most Texaco sites in the resale market are dealer-owned or jobber-supplied stations tied to a branded fuel supply agreement, not corporate-run stores. That structure shapes everything about the deal: the fuel margin, the image standards you inherit, and the term left on the brand contract. National cap rates for fuel and C-store assets run about 5.6%, roughly 5.58% with fuel income and 6.87% without. Knowing where a specific Texaco location lands inside that range is the difference between paying retail and buying right.
What a Texaco C-store deal involves
A Texaco transaction is rarely one asset. You are usually buying three things at once: the real estate, the fuel business, and the brand relationship. How a deal is priced depends on which of those transfer. Real estate and business together trade at about 8x EBITDA, 7x to 9x in premium markets. Business-only deals run 2.5x to 4.0x EBITDA, or SDE of 2.0x to 3.5x for smaller stores. Some fuel rights also change hands on a per-gallon basis, roughly $0.05 to $0.30 per gallon of monthly throughput.
Before you sign, understand which structure you are in. Our buy-side team maps the asset, the lease, and the fuel contract so you know exactly what you are paying for. Run early numbers with the C-store valuation calculator.
Fuel supply, branding, and image obligations
The Texaco mark comes with strings. A branded site operates under a fuel supply agreement, usually through Chevron's branded wholesale program or a regional jobber. That contract sets your gallon commitments, your pricing terms, and your image standards. Image standards can require canopy, dispenser, and signage upkeep to brand spec, and those costs land on the operator.
The term remaining on the fuel agreement matters as much as the lease. A buyer wants runway, not a contract about to expire or reset to worse terms. Margins explain why: 2025 fuel gross margins averaged 40-plus cents per gallon, but net fuel profit is only a few cents per gallon. The store carries the deal, with in-store items at 20% to 40% margins. Read our jobber fuel supply agreement guide and branded vs unbranded breakdown.
Who buys Texaco stations
Buyers fall into a few clear groups. Owner-operators want a site they can run and live on, often netting roughly $70K to $100K per year, and up to $100K to $500K by site. Multi-store operators add Texaco locations to existing fuel routes to gain buying power and spread overhead. Around 60% of US C-store operators run a single store, so there is a deep pool of first-time and step-up buyers in the market.
Passive and 1031 investors are the third group. They want the real estate with a tenant in place, ideally on a long absolute net lease. For them the brand and the lease term drive the cap rate. See branded C-store listings and NNN C-stores, or read who buys C-stores.
How a Texaco station is valued
Valuation starts with income, then adjusts for brand, location, and lease structure. National fuel and C-store cap rates average about 5.6%, roughly 5.58% with fuel income and 6.87% without. Geography moves the number. Florida is tightest near 5.11%, Texas runs about 5.63%, the Carolinas 5.0% to 5.5%, Tennessee 5.4% to 5.75%, and weaker markets 6.0% to 6.5% or higher.
Tenant credit also sets the floor. Top branded operators trade tight: Wawa at 4.83% to 5.20%, 7-Eleven at 5.00% to 5.40%, Murphy USA near 5.13%, and Circle K at 5.35% to 5.65%. A Texaco site is priced against comparable branded fuel income, then adjusted for term and traffic. Test scenarios with the cap rate calculator and read what is a good cap rate and cap rates by state.
How to buy a Texaco station
Financing usually decides the timeline. SBA 7(a) loans cap at $5M and require a 15% minimum equity injection on special-purpose C-stores, so plan on 10% to 15% down. Real estate terms run up to 25 years, with June 2026 rates around 9% to 11.5% APR variable and closings in 30 to 90 days. Conventional financing means 30% to 40% down, and many banks avoid underground storage tanks because of CERCLA liability, closing in 30 to 60 days.
Environmental review is non-negotiable. A Phase I ESA costs $1,800 to $3,500 under ASTM E1527-21 and is required on SBA fuel deals. Do not skip it. See our financing page, the SBA 7(a) guide, and the due diligence checklist.
How to sell a Texaco station
Sellers get the most by preparing before listing. Clean financials, a verified fuel supply agreement with term remaining, current image compliance, and tank records all support a tighter cap rate. Buyers pay for certainty, and Texaco branding helps only when the documentation backs it up.
Know the cost structure. Business brokers charge 10% to 20% on business-only deals and roughly 6% to 10% on real-estate-inclusive sales, with typical timelines of 3 to 6 months. Investors often want an absolute net lease, which can be created through a sale-leaseback to widen the buyer pool and capture full real estate value. Start with our sell-side process, the guide to increasing station value, and the sale-leaseback calculator.
