Lessee/Lease Dealer

The dealer owns the business. A major or regional oil company or a distributor owns the land and building (i.e. gas station) and leases it to a dealer. The dealer operates the location and pays rent to the owner (as opposed to an open dealer that owns the property). This arrangement gives the oil company or distributor a guaranteed supply outlet for their petroleum products, pursuant to a supply contract. A typical lessee dealer operates 1-2 stores and does not wholesale gasoline. Also known as company controlled, contractor-operated, and direct serve dealer.