Propane Exchange Route
Grill season revenue that heats up every summer
Propane exchange route businesses supply prefilled propane tanks to retail locations (grocery stores, gas stations, hardware stores) where consumers swap empty tanks for full ones. The model operates through consignment cage placement at retail locations with seasonal demand peaks during grilling season.
Avg Revenue
$150K
Profit Margin
37%
Acquisition Multiple
2x - 3x
Startup Cost
$30K - $100K
Difficulty
2/5
How It Works
Place propane exchange cages at retail locations. Deliver full tanks and pick up empties on a regular route. Customers swap an empty tank for a full one at the retail location. You manage the fill/delivery cycle and split revenue with the retail host. Demand spikes in spring and summer with grilling season.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 454310 · Fuel Dealers
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Feb 2022 | OK | $920K | $1.1M | 6 | — |
| Feb 2022 | OK | $500K | $588K | 6 | — |
| Nov 2020 | MA | $165K | $194K | 19 | — |
| Nov 2020 | MA | $40K | $47K | 19 | — |
| Nov 2020 | MA | $140K | $165K | 19 | — |
| Nov 2020 | MA | $18K | $21K | 19 | — |
| Nov 2020 | MA | $40K | $47K | 19 | — |
| Nov 2020 | MA | $36K | $42K | 19 | — |
| Nov 2020 | MA | $40K | $47K | 19 | — |
| Nov 2020 | MA | $18K | $21K | 19 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +Simple route-based model with steady demand
- +Retail locations handle customer transactions
- +Strong seasonal peaks with grilling and outdoor heating
- +Barriers to entry once cage locations are secured
Cons
- -Seasonal demand fluctuations (strong summer, weak winter)
- -Propane handling requires safety certifications
- -Heavy tank transport requires proper equipment
Best For
Route operators who want a seasonal business with established retail distribution
Operating Costs
Propane wholesale cost, tank refurbishment, delivery vehicle fuel and maintenance, cage rent at retail locations, and insurance.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Find propane and fuel distribution businesses for sale
Browse propane and distribution route opportunities
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- route
- Difficulty
- 2/5
- Buy price
- $300K–$450K
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Get the full breakdown in your inbox
Weekly boring business breakdowns
Get notified when high-margin businesses hit the market