Everyone who owns a car needs fuel. Bus operators, trucking businesses, and delivery companies do so too. Without a doubt, there is high demand for oil and fuel these days. It might be a good time then to invest in such a business, don’t you think?
One option for interested franchisees is a popular brand in the fuel industry: CALTEX. Continue reading to get more information about how to franchise a CALTEX Gas Station in the Philippines.
About CALTEX
Caltex is a brand of the Chevron Corporation, one of the world’s largest oil and petroleum companies. Caltex (Philippines) Inc. was formed in 1936 and in 1954, the first oil refinery of Caltex in the Philippines was built. At present, the company operates an import facility in Batangas with a storage capacity of around 2.7 million barrels.
Some trivia: Do you know the meaning of the star in the Caltex logo? The Caltex Star is a symbol of quality, value, and service. It serves as a reminder of the company’s commitment to its customers, which is:
“To renew your drive. To do the best we can to help you meet the needs of your journey. To recharge and refuel, not just your vehicle but your being.”
Site Requirements
To begin, prospective franchisees must have a location or site that complies with these requirements by CALTEX:
- Lot Size/Layout: minimum design layout of 1,200 sq.m.
- Frontage: minimum of 40 m
- Building and Structure: to be constructed by Investor in accordance with Chevron standard design
- Equipment: sourced through Chevron accredited vendors
- Signage and Branding: to be provided by Chevron
- Lot Lease Agreement: minimum secured term of 10 years
Building the Gasoline Station
It takes about 6 months to complete a basic Caltex Chevron gas station. The actual time span may vary depending on the size, location, and facilities to be installed, among other.
If the franchisee has an existing station which will be converted into a Caltex station, the average time required is around 3-4 months.
Business Operations
Prior to the opening of the station, it is mandatory for the Management team to attend training which takes about 4-6 weeks.
A usual Caltex station is open 24 hours. The retailer must employ a station manager who will be in charge of the gas station.
For logistics, a Chevron-hired tanker will deliver the products to the station, based on the orders via Chevron Business Point.
For marketing, Chevron offers various programs to the retailer and the station personnel. The company also supports certain kinds of advertisements up to 50% of the advertising costs.
How to apply to be a CALTEX franchise retailer
These are the seven (7) steps in order to become a CALTEX Retailer:
- Submit and present your site for CALTEX approval.
- Apply by completing an application form.
- An interview at the retailer’s home will be conducted.
- Next, there will be a sustainability check (On-the-job training & evaluation).
- The aspiring retailer’s financial background will then be checked.
- The aspiring retailer will present to the Retailer Selection Board for approval.
- Once approved, there will be a contract signing the franchisee must then complete a 2-week New Retailer Training Course.
Franchise Fee and Investment Cost
Interestingly, CALTEX does not charge a Franchise Fee or Royalty Fee. The minimum investment required, however, to start a CALTEX station is P5 million. The actual amount will depend on the size and location of the gasoline station.
Caltex retailers retain complete ownership of the land and business operations. Retailers can even customize the promotional offerings. As for stores or restaurants that may be located in the station, the company’s backcourt partnerships allow franchisees to co-brand with various popular restaurants and stores in the Philippines.
The Chevron Retailer Agreement Term is for 5 years, renewable for another 5 years under agreed terms and conditions.
Contact Details
For more details about the Caltex franchise, contact:
Chevron Philippines, Incorporated
Address: 6/F, 6750 Office Tower Ayala Avenue, Makati City 1226 Philippines
Telephone Number: (02) 867-7710
Are you interested in other franchising opportunities? Click here: Complete list of Philippine companies available for Franchising
Information and Photo Sources: Official Company Websites (www.caltex.com and www.caltexforinvestors.com)