Raceway

Raceway

Information based on 2023 FDD

Automotive Services · Gas Stations

Investment min
$198K
Total: $198K–$585K
Avg gross revenue
N/A
Unit-level, 2023
Franchise fee
$25K
Per current disclosure
Royalty
$1,000/mo
Locations
213
Franchising since 2018

Description

What is Raceway?

Raceway has been a trusted name in the convenience store and gas station industry since 1979, building a reputation for exceptional customer service and community-focused operations. With over 200 locations across the United States, Raceway stands out in the competitive fuel retail sector by prioritizing cleanliness, competitive pricing, and a welcoming atmosphere.

What sets Raceway apart is their commitment to creating a superior customer experience. Franchise locations are known for their meticulously maintained facilities, particularly their consistently clean restrooms – a crucial differentiator in the gas station industry. The brand has successfully cultivated a unique blend of professional service with a friendly, neighborhood store feel, where regular customers are often greeted by name.

Raceway stations typically feature spacious forecourts with multiple fueling stations, minimizing wait times during peak hours. Inside, stores offer a wide selection of convenience items, snacks, and beverages, with many locations featuring modern amenities like updated beverage dispensing systems. Their business model emphasizes competitive fuel pricing while maintaining high standards for store operations and customer service.

For entrepreneurs, Raceway offers the opportunity to operate in the stable and essential gas station industry while building meaningful connections within their communities. The brand's proven operational systems, combined with their focus on customer satisfaction and competitive pricing, provides franchise owners with a solid foundation for success in the fuel retail and convenience store market.
  • Over 40 years proven operation
  • 200+ locations across 11 states
  • Lower investment than sector average
  • Independently owned operational flexibility
  • Essential recession-resistant business model
  • Established regional brand recognition

Location Analysis

Where Raceway wins

Raceway demonstrates a strategic presence across multiple states, with widespread coverage throughout the United States, showing particular strength in the Southeast and Northeast markets. The franchise maintains a strong presence in Florida, New York, and Georgia, with notable concentrations in Ohio and Texas. This distribution suggests successful market penetration in both high-traffic urban areas and interstate corridors.

The franchise's impressive 4.53 average rating across numerous customer reviews indicates strong operational performance and customer satisfaction, particularly notable in the competitive gas station sector. This consistent rating across diverse markets suggests a reliable business model that translates well across different regions.

Key expansion opportunities exist in the Midwest and Western states, where Raceway's presence is less established. Ideal locations typically feature high-visibility positions along major transportation routes, proximity to residential areas, and strong daily traffic counts. Success factors include strategic positioning near interstate exits, commercial centers, and growing suburban areas.

Prospective franchisees should focus on locations with strong demographic indicators such as population growth, above-average household income, and high daily vehicle traffic. The franchise's strong performance in both warm-weather markets (Florida, Georgia) and four-season regions (New York, Ohio) demonstrates adaptability to various climate conditions and regional consumer behaviors.
Total US locations
213
Franchise units
213
Corporate locations
0
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Raceway

Avg gross revenueN/A
Investment range$197,500 – $585,000
Investment midpoint$391,250
Brand fund$1,000/mo
Royalty$1,000/mo
Franchise fee$25,000
Min. net worth
Min. liquid capital
Raceway presents an accessible entry point into the gas station franchise sector with investment requirements of $197,500 to $585,000, positioned well below the sub-sector average of $1.78M to $4.17M. This lower capital requirement makes it attractive for first-time franchisees and those seeking entry-level convenience store opportunities. The investment typically covers equipment, initial inventory, signage, and working capital, though specific liquid capital requirements aren't disclosed.

The convenience store and gas station industry benefits from recession-resistant characteristics, as fuel and convenience items remain essential consumer needs. However, the sector faces ongoing challenges from electric vehicle adoption and changing consumer shopping patterns toward larger retailers and online platforms.

With 213 units across 11 states and over 40 years of operation since 1979, Raceway demonstrates solid system maturity and regional market presence. The brand's focus on independently owned locations allows franchisees operational flexibility while maintaining brand standards. The system's moderate size suggests established operational infrastructure without oversaturation concerns.

Ideal investors should possess strong operational management skills and comfort with extended operating hours typical of convenience retail. The business model requires hands-on involvement and understanding of fuel retail regulations. Multi-unit development potential exists given the brand's regional footprint, though territory availability varies by market.

Prospective franchisees must thoroughly review the Franchise Disclosure Document and conduct comprehensive due diligence, including market analysis and financial projections with qualified advisors before making investment decisions.
Did you know? Did you know that starting your own Raceway convenience store franchise - known for their lightning-fast service and grab-and-go essentials - requires a total investment between $197,500 and $585,000, which includes the $25,000 franchise fee plus all the startup costs needed to fuel your entrepreneurial dreams in the competitive convenience retail market?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$198K–$585K
Most common
$197,500
Minimum
$391,250
Midpoint
$585,000
Maximum

Per FDD Item 7, total initial investment ranges from $197,500 to $585,000. The midpoint $391,250 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

+4% YoY
250200150100500
2019
2020
2021
2022
2023
213 units open as of 2023 FDD+9 in last 12 mo

2023 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Raceway's 2023 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2023 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Raceway franchise typically ranges between $197,500.00 and $585,000.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2023. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Raceway
Raceway
N/A avg revenue · 213+ US franchises

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