A fuel supply agreement is a long document and most of it is standard. A few clauses do most of the work, and they are the ones worth slowing down for. This is general commentary from operating experience, not legal advice. Have your attorney review anything before you sign it.
1. The term and what happens at the end
Look for the length, the renewal mechanism, and whether renewal is automatic. An agreement that rolls over unless you give notice in a narrow window is easy to miss, and missing it can cost you years of flexibility. Put the notice date in a calendar the day you sign.
2. Volume commitments
Many agreements assume a minimum monthly volume. Check what happens when you fall short, because the penalty is sometimes a payment and sometimes an extension of the term. Then check whether the assumed volume is realistic for your site, or whether it was based on an optimistic projection nobody revisited.
3. Image and equipment obligations
Branding commitments often carry required upgrades on a schedule: canopy, dispensers, signage. These can be reasonable, and they can also arrive at a moment you did not plan for. Find out who pays, when it is triggered, and whether any contribution has to be repaid if you leave early.
Why this matters at renewal
Most of what is wrong with an underperforming station can be fixed in ninety days. A supply contract is the exception. It can usually only be fixed at renewal, which is why knowing your date and your terms is worth more than almost any other piece of paperwork you hold.
If you want a second read before you sign, that is what our consulting engagement is for.
WRK Fuels provides management, consulting, and back-office software for gas station and convenience store owners. Start a conversation if you want to talk about your site.