Cars, these days, congest roads everywhere. Which means demand for fuel is expectedly high. If that is the case, then now may be the right time for you to invest in a gas station in the Philippines!
One of the most popular brands in the petroleum industry in the country is TOTAL. Interested to do business with them? Continue reading below to find out more information about TOTAL’s franchise fee and other requirements needed to strike a franchising deal with TOTAL.
About Total Philippines
Operating for almost 20 years now, Total Philippines Corporation (TPC) is a player in the country’s downstream petroleum industry. It operates a growing network of service stations throughout Luzon and Visayas, and is engaged in the marketing of refined petroleum products such as fuels, lubricants, and special fluids.
The company has investments in fuel depots and terminals in strategic locations all around the Philippines. In addition, TOTAL also operates other related businesses via its affiliates such as Total E&P Philippines (which studies possible oil and gas exploration in the country), Asia-Pacific Shared Service Center (which supports the delivery of finance processes across the region), and SunPower (a leading manufacturer of high efficiency solar panels for the global renewable energy market).
Business and Franchise Options
Prospective franchisees may choose any of the following TOTAL franchise business options that suits their preference:
- Company Owned – Dealer Operated Scheme (CODO)
- Dealer Owned – Dealer Operated Scheme (DODO)
- Property for Lease Only
Under CODO (Company Owned-Dealer Operated) scheme, TOTAL appoints the franchisee to become the dealer of a TOTAL gas station but TOTAL retains ownership of the station.
Under DODO (Dealer Owned-Dealer Operated) scheme, the franchisee co-invests with TOTAL for the construction and development of a service station. Construction period, on average, takes four (4) months from the time all necessary government permits have been secured.
For Property Lease option, anyone with an unused property in a good location may offer TOTAL the privilege of using the property, to be used as a TOTAL gasoline and service station, for a fee.
Franchise Fee and Total Investment Cost
For CODO, the minimum investment required is P3.5 million as working capital. The actual amount may depend on the projected volume of the service gas station.
For DODO, the minimum required investment is around P5 million for the construction of the service station. Additionally, dealers may also need about P2.5 million as working capital. Actual amount depends on the location and size of the service station, plus the volume potential of the station.
Franchise Duration
The Dealership Agreement under CODO is for a period of three (3) years, renewable for another three (3) years based on mutually agreed terms and conditions.
The Lease Contract under DODO shall have a minimum period of ten (10) years. The contract will be registered and annotated in the Transfer Certificate of Title with the Local Register of Deeds.
Standard Package Inclusions
The following benefits are part of the franchise investment paid by the franchisee to TOTAL:
- Broad Premium Quality product and package range with continual development
- Technical and Engineering Support
- Product Knowledge advice
- Financial/Management/Business planning and site improvement advice
- Specialist Merchandising and Product placement
- Marketing Support
- Personnel management advice and training
- Assistance in forecourt service crew and standards training
- Dealer update meetings and councils
- Safety, Environment and Occupational Health Advice
CODO Details and Franchise Requirements
To apply as a franchisee under the Company Owned – Dealer Operated (CODO) scheme:
1. Write a letter to TOTAL signifying your intention to operate as a service station dealer. You should also identify your preferred area of operation. Send the letter to:
The Vice President for Retail Total (Philippines)
7th Floor, 11th Corporate Center
11th Avenue corner Triangle Drive,
North Bonifacio Bonifacio Global City,
1634 Taguig City Philippines
2. A form shall then be sent to you to accomplish. Submit the completed form together with other required documents.
3. You will be required to take a Dealer Training Course for three (3) weeks to familiarize yourself with service station management and operations. Your Forecourt Service Crew (gasoline attendants), Station Manager, and Cashiers must also undergo classroom and hands-on training.
DODO Details and Franchise Requirements
To apply as a franchisee under the Dealer Owned – Dealer Operated (DODO) scheme:
- It is not necessary that you own the property. You can either own the property where the service station may be constructed or lease it from a third party of your choice or from a third party to whom TOTAL is leasing from. The basic requirements of the property are:
- Lot size – minimum of 1,000 square meters
- Frontage – minimum of 35 meters
- Classification – commercial or industrial
- With no court case or Lis Pendens
- No informal settlers
2. If you are currently operating a dealer-owned service station under a different brand, you may opt to convert it into a TOTAL brand upon meeting the following conditions:
- a. Your Dealer Agreement or Supply Agreement with your current brand has expired or can be pre-terminated
- b. The service station has not committed major violations at the national and local government levels
- c. The Retail Development Officer of TOTAL has determined the acceptability of the service station design, potential and location
3. Under DODO scheme, responsibilities are delineated as follows:
DEALER (franchisee) – site preparation, driveway, office building, perimeter wall, service station painting
TOTAL – local permits and ECC, working drawings (sign and sealed), dispensers and underground tanks including installation, air/water station (service area), air compressor and tire inflator, forecourt operating items, branding and signages
4. You may send a letter of intent, including attachments of photocopy of TCT, property location plan, photocopy of the tax declaration, and vicinity map, to:
The Retail Development Manager
Total (Philippines) Corporation
7th Floor, 11th Corporate Center
11th Avenue corner Triangle Drive,
North Bonifacio Bonifacio Global City,
1634 Taguig City Philippines
5. Same with CODO, you will be taking a Dealer Training Course for three (3) weeks to familiarize yourself with service station management and operations. Your Forecourt Service Crew (gasoline attendants), Station Manager and Cashiers must also undergo classroom and hands-on training.
Property for Lease Details
If you have an unused property, you may consider leasing it to TOTAL to be utilized as a service station.
1. Criteria for a feasible property are:
- a. Area – minimum of 1,000 square meters
- b. Frontage – minimum of 35 meters
- c. Classification – commercial or industrial with no Lis Pendens (a pending legal action or its formal notice)
- d. Location – preferably in a commercial district or near residential areas
- e. Total’s Retail Development Officer may inspect other preferences or restrictions
2. For Property for Lease Only, you may send a letter offer addressed to:
The Retail Development Manager
Total (Philippines) Corporation
7th Floor, 11th Corporate Center
11th Avenue corner Triangle Drive,
North Bonifacio Bonifacio Global City,
1634 Taguig City Philippines
Service Station Operations
A TOTAL service station is generally open for 24 hours. However, operating hours may be changed depending on the trading area.
A TOTAL-accredited lorry (tank truck) will deliver the fuel products to your service station. You may opt to use your own tank truck but will have to undergo accreditation from TOTAL technical personnel and for the driver/s to undergo necessary training and seminar as well.
Franchise Contact Information
7th Floor, 11th Corporate Center
11th Avenue corner Triangle Drive,
North Bonifacio Bonifacio Global City,
1634 Taguig City Philippines
Telephone Number: (+632) 849-0849
Are you interested in other franchising opportunities? Click here: Complete list of Philippine companies available for Franchising
Information and Photo Sources: Official Company Website, BPI Family Ka-Negosyo