How to Finance an Avfuel Franchise: Airport Fuel Supply and SBA
By Marc Cornella
An Avfuel franchise loan usually finances an airport business rather than a storefront: a fixed base operator, or FBO, that sells jet fuel and avgas, parks and services aircraft, and welcomes pilots and passengers under the Avfuel brand. Becoming an Avfuel-branded FBO means signing an aviation fuel supply agreement, so financing revolves around fuel inventory, refueling equipment and hangars on leased airport land.
US Professional Funding is not affiliated with, sponsored by or endorsed by Avfuel; the name is used only to describe the business. Figures from the company’s own materials or any disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice. Review your fuel supply agreement with an attorney and an accountant before you sign.
Avfuel Franchise Loan at a Glance
- What you sign: a fixed base operator aviation fuel supply agreement with Avfuel Corporation, which is how the brand appears on the SBA Franchise Directory.
- Network size: the company reported more than 675 Avfuel-branded FBOs across North America and Europe, and a network of more than 3,500 locations worldwide, as of 2023.
- History: Avfuel marked its 50th year in 2023, tracing its start to 1973.
- Supply base: the company says it works with more than 90 refiners and more than 300 terminals.
- Franchise fee, royalty and investment range: not published; fuel supply agreements are negotiated, and the economics are built into fuel pricing and program terms rather than a published fee table.
- Net worth and liquidity requirements: not published; the company evaluates each FBO and operator.
- SBA Franchise Directory: listed as AVFuel Corporation (code S4733), with a note that the distributor may not file anything against the real estate collateral securing an SBA loan.
What Is Avfuel?
Avfuel supplies aviation fuel and services to fixed base operators, flight departments and aircraft operators. The company describes itself as the leading independent supplier in the United States and reports doing business in 149 countries.
The branded side of the business is a network of independently owned FBOs that fly the Avfuel flag. According to the company, a branded FBO receives fuel supply, signage and marketing support, access to its contract fuel sales program and pilot loyalty rewards, line service and fuel safety training, and a web-based payment processing system. The company also designs, manufactures and leases refueling equipment and fuel storage tanks, and it advertises credit and financing services for its customers.
Is Avfuel a franchise? In the everyday sense, it is a branded supply relationship more than a classic franchise. You buy or build the FBO, you own and run it, and Avfuel supplies the fuel and the brand. Because the agreement appears on the SBA Franchise Directory, lenders review it much like a franchise agreement.
Avfuel FBO Costs
Brand and supply costs
Avfuel does not publish a franchise fee or royalty. Instead, the commercial terms sit inside the fuel supply agreement, which can include pricing formulas, volume expectations, branding requirements and any branding or equipment incentives. Ask for the full agreement and every exhibit early, and have your lender review them.
Airport lease, hangars and real estate
Most FBOs operate on airport property under a ground lease or operating agreement with the airport sponsor. The remaining lease term is often the single biggest factor in how long a lender is willing to lend. See our article on buying a fuel business with or without the real estate for how property ownership changes the financing.
Fuel farm and refueling equipment
A fuel farm with jet fuel and avgas storage tanks, filtration and dispensing equipment, plus refueler trucks, is central to an FBO. Tanks and refuelers can be purchased, leased or provided under supply arrangements, so confirm who owns each piece and what happens to it if the agreement ends.
Opening costs and working capital
Fuel inventory is a large, recurring cash need. A typical FBO budget includes:
- Purchase price of an existing FBO, or construction costs for new facilities
- Leasehold improvements to hangars, the terminal and ramp areas
- Fuel farm tanks, filtration and dispensing equipment
- Refueler trucks and ground support equipment such as tugs and ground power units
- Opening fuel inventory and ongoing fuel purchases
- Training, insurance, permits and environmental compliance
- Working capital to cover payroll and operating costs during ramp-up and slow seasons
Ongoing Costs and How They Affect Your Loan
Because Avfuel’s economics are built into fuel pricing and program terms rather than a published royalty, lenders focus on fuel margin per gallon, gallons sold, and the non-fuel income an FBO earns from hangar rent, tie-downs, ramp and handling fees, maintenance or other services.
When a lender sizes debt service, it looks at cash flow after fuel cost, payroll, airport rent and fuel flowage fees, insurance, equipment maintenance and any program charges in the supply agreement. A projection that counts fuel revenue without matching fuel cost, or that ignores airport fees, will overstate how much an FBO can borrow.
Requirements for New Avfuel Operators
Avfuel does not publish a minimum net worth, liquid capital or experience requirement for branded FBOs. In practice, the company and your lender will each look at your aviation background, your relationship with the airport, your fuel handling and safety record, your credit, and your ability to fund fuel purchases.
Because the airport sponsor controls who may operate on its property, most deals need three aligned approvals: the airport, the fuel supplier and the lender.
Ways to Become an Avfuel-Branded FBO
Buying an existing Avfuel FBO. The buyer takes over an operating FBO with fuel volume history and, subject to Avfuel’s and the airport’s consent, the branded supply relationship. Lenders can underwrite actual gallons, margins and non-fuel income. Our page on fuel business acquisition financing outlines how these purchases are structured.
Rebranding an existing FBO. An independent or differently branded FBO can switch to Avfuel when its current supply agreement allows. Review exit costs or incentive repayment under the old agreement first.
Starting a new FBO. A new operator at an airport without an FBO, or a second operator at a busy field, needs an airport lease, facilities, a fuel farm and equipment before the first gallon is sold. Lenders usually expect more equity and a detailed plan. See our page on fuel business start-up financing.
Financing Options for an Avfuel FBO
SBA 7(a) loans. SBA 7(a) loans can be used to buy an existing FBO, fund leasehold improvements, purchase equipment and provide working capital, subject to program rules. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. When an operator owns or builds long-lived assets such as a hangar or terminal, SBA 504 loans may fit, subject to program rules on leasehold improvements and lease terms.
Conventional loans. Experienced operators with strong cash flow, or projects that exceed SBA limits, may use conventional business loans. Terms vary widely and often depend on the remaining airport lease term.
Equipment financing. Refueler trucks, fuel farm tanks and filtration, tugs, ground power units and de-icing equipment can be financed or leased separately. Our page on fuel business equipment financing covers how equipment loans and leases work. Remember that the primary lender will count any equipment debt.
Working capital and lines of credit. Fuel inventory, seasonal traffic and the lag between buying fuel and collecting on sales all call for liquidity. A line of credit can bridge those gaps; see our page on franchise working capital.
Seller financing on resales. When buying an existing FBO, part of the price may sometimes be carried by the seller. A seller note is typically subordinate to the primary loan, and SBA rules may limit how it is structured.
SBA Loans for Avfuel FBOs
SBA-backed loans are made by participating lenders with an SBA guarantee on part of the loan. When a borrower operates under a franchise-type agreement, the lender confirms the borrower controls its own business, and the SBA Franchise Directory helps with that review.
The directory listing. AVFuel Corporation appears on the SBA Franchise Directory under code S4733 for its fixed base operator aviation fuel supply agreement. A listing can simplify the lender’s review of the agreement, but it does not approve any borrower or guarantee any loan.
What the directory note means. The listing carries a note that the distributor may not file anything against the SBA real estate collateral. In plain English, if real estate or a leasehold interest secures the SBA loan, Avfuel cannot record a lien, mortgage or similar claim against it. If your supply documents would give the supplier such a right, it must be removed or modified, so share the full agreement with your lender early.
SBA tips for FBO buyers. Bring the supply agreement, airport lease, assignment consents and fuel farm environmental reports to the first conversation.
How Lenders Evaluate an Avfuel FBO Deal
Personal credit and financial history. Lenders review each owner’s credit, tax returns and debts, and significant owners typically provide personal guarantees.
Net worth and liquidity. FBOs need cash to buy fuel and cover payroll. Expect questions about your equity injection and the reserves you will have after closing.
Aviation and management experience. Experience running an FBO or line service team carries weight; buyers without it may keep experienced managers in place.
Business plan and projections. Projections should show gallons by fuel type, margin per gallon, non-fuel income, airport rent and fees, staffing, and seasonality, with assumptions tied to the airport’s traffic history.
The fuel supply agreement. Lenders review the term, renewal, pricing structure, minimum volume terms, termination rights, any incentive repayment and the treatment of equipment the supplier provides.
The airport lease. Remaining lease term, renewal options, assignment rights and the airport’s consent are often decisive. A short remaining lease can limit the loan term.
Fuel Farms, Refuelers and Equipment
Equipment is where FBO financing differs most from other fuel businesses. Tanks, filtration, refuelers, tugs, ground power units and de-icing equipment may be bought, financed or leased from the supplier. Each path affects the balance sheet, the collateral available to your lender and what happens if you change suppliers, so map equipment ownership before you sign.
Multi-Location Growth
Some FBO operators run locations at several airports, each with its own airport lease and possibly its own supply terms. Financing a second FBO usually starts with the performance of the first, and SBA program limits apply across all of a borrower’s SBA loans, so larger groups often move toward conventional financing.
Real-World Scenarios
A line service manager buying the FBO. A long-time manager buys the Avfuel-branded FBO where they work. The lender underwrites the fuel volume history and confirms the airport consents to the lease assignment and the supplier approves the new operator.
Adding hangar space. An established Avfuel FBO wants a new hangar on its leasehold. The operator explores a 504 structure, and the lender checks that the remaining airport lease term supports the loan and that the supplier has no claim against the collateral.
Common Mistakes to Avoid
- Signing a purchase contract before the airport consents to the lease assignment
- Overlooking incentive repayment or equipment terms in the current supply agreement
- Projecting fuel revenue without matching fuel cost, airport rent and flowage fees
- Taking a loan term longer than the remaining airport lease
- Leaving too little working capital for fuel inventory and slow seasons
- Ignoring the SBA directory note about supplier claims on real estate collateral
Read more in the fuel business loan mistakes that cost owners the most.
Next Steps to Finance Your Avfuel FBO
Step 1: Choose your path. Decide whether you are buying, rebranding or starting an FBO.
Step 2: Review the agreements. Have an attorney review the fuel supply agreement and the airport lease, including term, assignment and termination provisions.
Step 3: Build a budget. Include the purchase or construction cost, equipment, fuel inventory, fees and working capital, plus a contingency.
Step 4: Talk with a financing specialist. Confirm which loan structures fit before you commit. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Gather documents. Collect financial statements, tax returns, résumés, fuel volume reports, environmental reports and the agreements.
Step 6: Align approvals. Coordinate the airport, the supplier and the lender so their timelines match your closing date.
Step 7: Plan the transition. Arrange fuel supply changeover, staff training, insurance and account setup before closing day.
Avfuel Franchise Loan FAQs
How much does it cost to become an Avfuel FBO?
Avfuel does not publish an investment range. Costs depend on the airport, the lease, the facilities and the equipment, and on whether you buy an existing FBO or start one.
Is there an Avfuel franchise fee or royalty?
The company does not publish one. Commercial terms are set in the fuel supply agreement, so review it carefully with your attorney and lender.
Can I get an SBA loan for an Avfuel FBO?
Possibly. The supply agreement is on the SBA Franchise Directory under code S4733. Eligibility depends on the borrower, the project, program rules and lender approval, and the supplier may not file anything against real estate collateral securing the loan.
What does an Avfuel franchise loan usually cover?
Depending on the program and lender, an Avfuel franchise loan may help fund the purchase price, leasehold improvements, fuel farm and refueling equipment, opening fuel inventory and working capital.
Does Avfuel offer financing?
The company advertises credit and financing services and equipment leasing. Compare those terms with outside loans and disclose any supplier obligations to your lender.
Can I buy an existing Avfuel FBO?
Yes, subject to the airport’s consent to the lease assignment and Avfuel’s approval of the new operator. Lenders can then underwrite the FBO’s actual fuel volume and income.
Do I need aviation experience?
Lenders, airports and the supplier all weigh aviation and fuel handling experience. Keeping experienced line service managers can help a first-time owner.
Can I finance refuelers and tanks separately?
Often, yes, through equipment loans or leases, including leases from the supplier. Your primary lender will count that debt.
Can I own more than one Avfuel FBO?
Yes. Each airport typically involves its own lease and approvals, and lenders review the results of your existing locations first.
How does the airport lease affect my loan?
The remaining lease term, renewal rights and the airport’s consent often limit the loan term and collateral. Lenders generally want the lease to run at least as long as the loan.
Final Thoughts
An Avfuel franchise loan is really an FBO loan with a branded fuel agreement at its core. Owners who understand the supply agreement, secure a long enough airport lease and align the airport, supplier and lender give themselves the best chance of a smooth closing.
US Professional Funding helps buyers and operators finance branded fuel businesses, including acquisitions, start-ups, equipment and working capital. Learn more about our franchise financing and gas station and fuel business financing.
