How much does a Propane Exchange Route cost to buy?

A typical Propane Exchange Route sells for 2x to 3x seller's discretionary earnings. With estimated SDE of $56K, expect to pay roughly $111K to $167K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Propane Exchange Route?

Startup costs range from $30K to $100K depending on location, equipment, and scale.

Route

Propane Exchange Route

Q: What are the profit margins for a Propane Exchange Route?

The average profit margin for a Propane Exchange Route is around 37%. Propane wholesale cost, tank refurbishment, delivery vehicle fuel and maintenance, cage rent at retail locations, and insurance.

Grill season revenue that heats up every summer

Bottom line

Accessible entry point; validate local supply before buying.

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.

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Acquisition score

Strong

Avg Revenue

$150K

Profit Margin

37%

Acquisition Multiple

2x - 3x

Startup Cost

$30K - $100K

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

Low End

$50K

Typical

$150K

High End

$350K

BizBite underwriting snapshot

Watch / verify

Propane Exchange Route has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

Speculative / 100

Data confidence

medium

52/100

Financing fit

medium

Category-level fit before lender-specific diligence.

Confidence cap

Weak source data caps the final score.

Why it may work

+Attractive 37% estimated margin profile

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No category operating model yet
!No category model yet

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 454310 · Fuel Dealers

Deals tracked

0 in last 24 mo

Median loan

$40K

$18K–$140K p25/p75

Implied deal size

$47K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Financing Profile

Median rate

—

last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Leader Bank, National Association11

Equity Bank2

CNB Bank1

Where deals happen

MA11

OK2

PA1

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	$18K	$21K	19	—
Nov 2020	MA	$40K	$47K	19	—
Nov 2020	MA	$100K	$118K	19	—
Nov 2020	MA	$40K	$47K	19	—
Nov 2020	MA	$18K	$21K	19	—
Nov 2020	MA	$14K	$17K	19	—
Nov 2020	MA	$36K	$42K	19	—

Volume rank #329/544Deal-size rank #544/544p90 loan: $500KData as of Mar 2026

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

+$2K/mo

after debt service

Deal price — $230K

Range: $230K (2×) to $600K (3×+)

Down payment — 15% ($35K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 8.00%

Current prime-based SBA rates: 7.5–10.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$35K

15% equity injection

Loan amount

$196K

85% SBA-financed

Monthly payment

$2K/mo

$89K total interest

Monthly profit

$5K/mo

at 37% margin

Monthly cash flow after debt service

+$2K/mo

Down payment paid back in ~16 months — strong return

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.