How to Finance a Marathon Franchise: Jobber Supply and SBA Liens
By Chris Cornella
A Marathon franchise loan finances a fuel station and convenience store that sells Marathon-branded gasoline and diesel. There is no single Marathon franchise package with a set fee, royalty and build-out budget. Instead, a station owner typically signs a branded fuel supply agreement with an independent wholesale distributor, often called a jobber, that is authorized to supply the Marathon brand, and that agreement affects nearly every part of the financing.
This article explains how the Marathon network is organized, what a buyer or builder actually pays for, how Marathon’s many SBA Franchise Directory listings work and what their lien notes mean, and how lenders evaluate an acquisition, a rebrand or a new-build station under the brand.
US Professional Funding is not affiliated with, sponsored by or endorsed by Marathon; the name is used only to describe the business. Brand programs, supply agreements and directory listings can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax, environmental or investment advice. Review any supply agreement, franchise documents and environmental reports with a qualified attorney and accountant.
Marathon Franchise Loan at a Glance
- What you are joining: a branded fuel program, under which you buy Marathon-branded fuel through an authorized distributor and display the brand’s image at your station.
- Network: its parent company’s annual report lists 7,882 brand jobber outlets in 40 states, the District of Columbia and Mexico as of December 31, 2025, where independent entrepreneurs primarily maintain Marathon-branded outlets.
- Ownership model: stations are independently owned or operated; the parent company sold its company-owned retail business in 2021.
- Fees and costs: set by your supply agreement and the distributor’s terms rather than a published franchise disclosure document; they vary by region and site.
- SBA Franchise Directory: listed under 11 separate codes (S4399, S5656, S7008, S7680, S8283, S8633, S8688, S8710, S8750, S8876 and S8894), tied to particular supply agreements.
- Key SBA note: the distributor may not file anything against SBA real estate collateral, with limited exceptions in some listings.
- Common loan tools: SBA 7(a) and SBA 504 loans for the property and business, separate equipment loans for pumps and tank systems, and revolving credit for fuel drafts and store stock.
What Is Marathon?
Marathon is the retail fuel brand of a large U.S. refining and marketing company whose annual report says it has nearly 140 years of history in the energy business. That report also describes the Marathon trademark as material to the company’s refining and marketing operations.
How Marathon stations are structured. According to its parent company’s annual report, Marathon-branded outlets are primarily maintained by independent entrepreneurs supplied through the brand jobber channel. In practice, that means a station owner signs a supply agreement with a jobber, the jobber buys branded fuel from the brand’s supply organization, and the owner sells it at the pump under the Marathon name. The parent company sold its company-owned and operated retail business in 2021, so the Marathon network today is built on independent owners and distributors.
Brand programs. Marathon supports branded stations with a consumer rewards program, fleet and gift cards, its Endurance Fuels line and national advertising, including a campaign and website launched under the theme Driven Together. These programs can drive traffic, but each has its own costs and requirements in the supply agreement.
Why lenders view Marathon the way they do. Lenders see a well-known brand with a large network and a long history. They also see the risks of any fuel station: environmental exposure, volatile fuel prices, thin fuel margins and dependence on inside store sales. Because the brand relationship runs through a distributor, lenders also look closely at the supply agreement’s term, its obligations and whether the distributor has any claims on the property.
Marathon Station Costs
There is no single Item 7 table for a Marathon station. What you spend hinges on the path you take into the network (acquisition, conversion or new construction) and on what your jobber offers in exchange for a long-term fuel commitment.
Brand and supply fees. Fees, image program costs and volume commitments are set out in the supply agreement and any related documents from your distributor. Some distributors provide branding incentives or loans for image upgrades, which can come with repayment obligations if the agreement ends early. Ask for every document that will be signed at closing.
Land and building. When you buy a going concern, one purchase price typically bundles the dirt, the store, the canopy, the tanks and pumps, and the goodwill of the operating business. When you build, the budget starts with a parcel and adds grading, the store shell, canopy, concrete and utility hookups.
Fuel system. Underground storage tanks, piping, dispensers, leak detection and payment terminals are among the most expensive and closely regulated parts of the property. Their age and compliance status affect value and financing.
Image and rebranding. Flying the Marathon flag on an existing site means replacing the canopy band, pylon sign, pump toppers and decals so the station matches the brand’s current look.
Store build-out and equipment. Coolers, shelving, food service equipment, point-of-sale systems and security cameras are often a large part of the investment, especially when the store includes prepared food.
Opening inventory and working capital. The first fuel loads, store inventory, licenses, insurance and deposits all require cash before the station generates its first full month of sales.
What lenders want in your budget.
- Purchase price or land and construction costs
- Fuel system work, upgrades or replacement
- Image and signage under the Marathon program
- Store equipment and technology
- Environmental reports, appraisals and closing costs
- Opening fuel and store inventory
- Working capital reserves
Ongoing Costs and How They Affect Your Loan
Fuel pricing and margins. The price you pay your jobber for each load is defined by your supply contract, and the spread you keep at the pump moves with the wholesale market. Fuel margins can swing with wholesale prices, so lenders look at several years of results rather than a single strong month.
Volume commitments. Many branded supply agreements set minimum volumes. If the station falls short, there may be penalties, or incentive repayments if the agreement ends early.
Card fees and settlement timing. Most fuel is paid by card, so processing fees are a major expense and settlement timing affects cash flow. Some branded card programs may settle through the distributor.
Brand programs. Rewards, loyalty and image programs may carry fees or require technology upgrades.
Maintenance and compliance. Tank testing, environmental insurance and dispenser maintenance are ongoing costs that lenders expect to see in projections.
How lenders factor these costs in. Lenders separate fuel gross profit from inside sales profit, apply realistic margins and stress-test the debt payments against a lower fuel margin. A strong inside store with a variety of products often makes the strongest case for a Marathon franchise loan.
Brand Requirements for New Dealers
Marathon does not publish a standard net worth or liquidity requirement for branded dealers. Requirements are set by the distributor and the brand’s approval process and typically consider:
- Experience operating a fuel station or convenience store
- Financial strength and credit history
- The quality of the site, including traffic, access and competition
- The condition of the fuel system and environmental history
- Willingness to meet image, operating and volume standards
Lenders apply their own requirements on top of the distributor’s, so expect to show enough liquidity for your equity injection plus reserves. Our overview of gas station loan requirements covers how lenders underwrite fuel and store sales.
Ways to Own a Marathon Station
Buying an operating Marathon station. This is often the most straightforward route. The buyer acquires a station with a sales history, an existing supply agreement and established customers. The distributor must usually approve the new owner, and the supply agreement may be assigned or replaced. Lenders can underwrite historical results. Learn more about gas station and c-store acquisition financing.
Rebranding an existing station. A station selling unbranded fuel, or flying another flag, can switch to Marathon when its current contract allows. The new supply agreement may include incentives for the image conversion, but those often carry repayment obligations. Our article on branded vs. unbranded gas stations explains the tradeoffs.
Building a new station. A new-build Marathon station combines land, construction, fuel system, store equipment and working capital, and is underwritten on projections and the owner’s experience. See our gas station start-up financing options.
Leasing a station from a distributor. Some distributors own stations and lease them to operators. Here the borrower is financing an operating business on someone else’s land, so the lender reads the site lease and the fuel contract side by side.
Financing Options for a Marathon Franchise
SBA 7(a) loans. An SBA 7(a) loan can finance a station purchase including land, building, equipment, goodwill and working capital in one loan. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Larger stations or multi-site deals may need additional financing.
SBA 504 loans. For projects focused on real estate and long-lived equipment, such as building a new station or buying the land and building of an existing one, an SBA 504 loan can be a good fit. The business must occupy the property.
Conventional loans. Experienced operators with strong collateral and track records may use conventional business loans, especially for larger or multi-site transactions. Terms vary by lender and every request is subject to underwriting.
Equipment financing. Pumps, card readers, automatic tank gauges, walk-in coolers and kitchen gear can usually carry their own loan or lease. Explore gas station equipment financing.
Working capital and lines of credit. Fuel loads must be paid for promptly, often by electronic draft, while card settlements can lag. A line of credit can help a station manage fuel price spikes, seasonal swings and inventory purchases. Learn more about working capital for gas stations.
Distributor incentives. Some supply agreements include image or branding incentives. These are not loans from a financial institution, but they may need to be repaid if the agreement ends early, and SBA rules limit how a distributor’s interest can be recorded against SBA collateral.
Seller financing. In a station sale, a seller may carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA and other programs may limit how it is structured.
SBA Loans for Marathon Stations
The SBA keeps a Franchise Directory of brand relationships it has already reviewed. Fuel brands complicate that list, because each jobber writes its own supply contract, and so a brand like Marathon ends up with a separate entry for each reviewed contract instead of one master agreement.
Marathon’s directory listings. Marathon appears on the directory under 11 codes: S4399, S5656, S7008, S7680, S8283, S8633, S8688, S8710, S8750, S8876 and S8894. Most of the entries cover fuel distributor agreements with specific distributors, one covers a retail dealer agreement, and one covers a combined listing for stations carrying Marathon and a sister fuel brand. Before applying for a Marathon franchise loan through the SBA, confirm with your lender that your exact supply agreement matches one of the listed entries.
What the directory notes mean in plain English.
- A clean title for the SBA lender: the core note repeated across the Marathon entries bars the distributor from recording anything against the real estate pledged for the SBA loan. Your jobber’s paperwork cannot put a mortgage, lien or similar claim on the land and building backing that loan.
- Limited exceptions for improvements: some listings allow the distributor to record a mortgage or deed of trust for money it advances for site improvements, but only if it is subordinate to all SBA financing. One listing requires an SBA-approved form for that mortgage.
- Fixture filings: one listing also allows a UCC fixture filing for equipment the distributor finances, known as a purchase money security interest, while requiring other distributor filings to be subordinate to the SBA financing.
- Lien position: several listings remind the lender or CDC to secure the correct lien position on all collateral as required by SBA rules.
Why the notes matter. Distributors often invest in image upgrades and equipment at branded stations and want security for that investment. The SBA notes make sure those interests do not compete with the SBA lender’s first claim on the real estate. If your distributor has already recorded a lien, it may need to be released or subordinated before closing.
SBA application tips. Gather the supply agreement and any incentive or equipment documents early. Ask your title company to search for distributor filings, and order the environmental review promptly. Our guide to gas station environmental due diligence explains Phase I and Phase II reports.
How Lenders Evaluate a Marathon Deal
Underwriting a Marathon franchise loan looks at the operator, the site and the supply relationship together.
Personal credit and financial history. Expect a credit pull, personal and business tax returns, a signed personal financial statement and a personal guaranty from each owner.
Net worth and liquidity. Expect to document your equity injection and show reserves after closing to handle fuel price swings and repairs.
Industry and management experience. Experience running a fuel station, convenience store or similar retail business carries significant weight. First-time owners can strengthen a request by hiring an experienced manager.
Business plan and projections. Projections should separate fuel gallons and margins from inside sales, include card fees and supply agreement terms, and show how the station performs if fuel margins tighten.
The supply agreement and franchise documents. Lenders look at the remaining term, volume commitments, incentive repayment terms, assignment rights and any distributor liens. A supply agreement that expires shortly after closing raises questions.
Real estate and environmental review. Expect an appraisal, a Phase I environmental report and possibly a Phase II, plus a review of tank registrations and compliance records.
Historical financials for existing stations. Ask the seller early for multi-year tax returns and income statements, gallon reports from the jobber and item-level store sales from the point-of-sale system.
Fuel Systems, Equipment and Environmental Considerations
The fuel system is the heart of a Marathon station’s real estate value. Tanks, lines, dispensers and leak detection systems must meet environmental regulations, and replacing them can be a major expense.
Planning for upgrades. Before you buy, find out the age and material of tanks and piping, the status of leak detection, and whether dispensers and payment terminals meet current standards. Build upgrades into your financing rather than paying for them from working capital after closing.
Inside the store. Coolers, food service equipment and point-of-sale systems drive inside sales. Lenders appreciate seeing a plan to improve the store, because inside sales often produce a large share of a station’s profit.
Multi-Site Growth
Many Marathon operators own several stations, often with the same distributor. Once you have a track record, lenders can underwrite your existing stations’ cash flow alongside a new acquisition.
Financing a portfolio. Operators may finance each station separately or consolidate debt across several locations. Each additional site needs its own supply agreement review, environmental report and title search. Keep consolidated financial statements as your group grows.
Real-World Scenarios
A store manager steps up to ownership. A longtime convenience store manager buys a Marathon station from a retiring owner. The distributor approves the buyer and assigns the supply agreement. An SBA 7(a) loan covers the land, building, equipment and goodwill, and the title search confirms the distributor has no filings against the property.
Rebranding an independent station. A family that has run an unbranded corner station for years switches to Marathon through a regional jobber. The jobber pays for much of the new canopy and signs under an incentive that unwinds if the contract ends early, and the family finances new pumps with an equipment loan.
A title surprise. During an SBA loan closing, the title search reveals a mortgage recorded by a prior distributor. The lender requires it to be released or subordinated before closing, consistent with the directory notes.
A new-build station. A multi-site operator builds a new Marathon station using an SBA 504 loan for the land, building and fuel system, plus a separate line of credit for opening inventory.
Common Mistakes to Avoid
- Assuming every Marathon supply agreement is covered by the SBA directory
- Overlooking distributor liens or mortgages recorded against the property
- Ignoring incentive repayment terms when the supply agreement may change
- Underestimating fuel system upgrades and environmental costs
- Projecting fuel margins from one strong month instead of several years
- Running so lean on cash that a fuel price spike or slow card deposits strain the next load
For more pitfalls, read the gas station loan mistakes that cost owners the most.
Next Steps to Finance Your Marathon Franchise
Step 1: Choose your path. Pick your route into the Marathon network: acquire, convert or build.
Step 2: Talk with an authorized distributor. Learn the supply agreement terms, incentives, volume commitments and approval process.
Step 3: Review documents with advisors. Put the fuel contract, incentive paperwork and purchase agreement in front of a lawyer and a CPA before you sign.
Step 4: Confirm SBA eligibility. Ask your lender to match your supply agreement to one of Marathon’s SBA directory listings and review the related notes.
Step 5: Order due diligence. Schedule the environmental review, appraisal and title search, and inspect the fuel system.
Step 6: Build projections and apply. Separate fuel and inside sales, stress-test fuel margins and submit your loan request. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 7: Close and transition. Coordinate the supply agreement assignment, licensing, fuel deliveries and working capital for a smooth handoff.
Marathon Franchise Loan FAQs
Is Marathon a franchise?
Marathon stations are independently owned and operate under branded fuel supply agreements, usually through distributors. The SBA Franchise Directory lists several Marathon agreements, so for SBA purposes they are treated as franchise relationships.
How much does it cost to open a Marathon gas station?
Marathon does not publish a franchise investment table. Your total will be driven by the site price or construction budget, the shape of the tanks and pumps, the image package, store fixtures and opening cash.
Is there a Marathon franchise fee or royalty?
Marathon does not publish a standard franchise fee or royalty. Fees, image costs and volume commitments are set in the supply agreement with your distributor.
How many Marathon stations are there?
Its parent company’s annual report lists 7,882 brand jobber outlets in 40 states, the District of Columbia and Mexico as of December 31, 2025, where independent entrepreneurs primarily maintain Marathon-branded outlets.
Can I get an SBA loan for a Marathon station?
Yes, if your supply agreement matches one of Marathon’s 11 SBA directory listings and you qualify. Every loan is subject to approval.
What does “distributor may not file anything against the SBA real estate collateral” mean?
It means your distributor cannot record a lien, mortgage or similar claim against the property securing the SBA loan, except in limited cases some listings allow, which must be subordinate to the SBA financing.
Can I finance dispensers and tanks separately?
Yes. Dispensers, tank monitoring systems and payment terminals can often be financed with equipment loans or leases.
Can a first-time owner get a Marathon franchise loan?
Yes, but lenders and distributors look closely at experience. A first-time owner can strengthen a request with retail management experience, a strong manager and solid reserves.
Does Marathon offer financing?
Marathon does not publish a franchisee lending program. Some distributors offer image or branding incentives, which may need to be repaid if the agreement ends early.
How long are Marathon supply agreements?
Supply agreement terms vary by distributor. Lenders typically want the remaining term to support the loan, so review renewal and termination rights before closing.
Can I buy the real estate with my Marathon franchise loan?
Yes. SBA 7(a), SBA 504 and conventional loans can include land and buildings when the business occupies the property.
Final Thoughts
Behind every Marathon franchise loan sits a station loan and a jobber contract that must work together. Buyers who understand their supply agreement, confirm SBA directory eligibility, clear any distributor liens and plan for fuel system and working capital needs put themselves in the best position to close smoothly.
US Professional Funding works with fuel retailers on purchases, ground-up builds, equipment, working capital and property financing. Learn more about our franchise financing and gas station and c-store financing solutions.
