With the rising gas prices but the demand being high, franchising your own Phoenix gas station might be a good idea. How much do you need and how can you start a franchise?
Franchising Phoenix Gas Station
Franchising a gas station can be quite costly. For example, the minimum required investment for a Caltex gas station is Php5 million. Franchising Eastern Petroleum costs at least Php2.25 million for the basic station with 2 pumps.
Why choose Phoenix? Franchise starts at Php3.5 million but they promise would-be dealers that the return on investment for gas stations is quite high. That means that you can recover your investment quicker.
Steps to Franchise Phoenix Gas Station
Step 1. Call their Customer Service Hotlines via 1-800-10-PNXFUEL (769-3835) or 0917-313-7011. You can also use the form on their website (www.phoenixfuels.ph/dealers/)
Another option is to contact the Retail Territory Manager in your area.
Step 2. You’ll be provided with the Phoenix Franchise Application Form that you should fill out. You must indicate the location of your proposed site.
If you don’t have a chosen site yet, Phoenix will help you choose one if they have some options available on their pool of lots in your area.
Step 3. Phoenix will conduct an inspection and analyze the traffic at the proposed site. If it doesn’t conform to their standards, they’ll help you choose another location.
Step 4. You’ll meet with the DSP (Dealer Selection Panel), a team of executives, who interview you about your background and commitment to operating your own Phoenix station.
Step 5. If you pass the interview, go ahead and pay the corresponding fees after signing theFranchise Agreement with Phoenix.
Step 6. If you’re getting a DODO (Dealer-Owned/Dealer-Operated) franchise, secure the necessary permits. Phoenix will still assist you in the process.
They’ll be the ones to process the permits for CODO (Company-Owned/Dealer-Operated) stations.
Step 7. Construction begins with customized building plans and design for the station provided by Phoenix. This will vary depending on the size of the station and the time you got the permits, but it’s time to hire your staff.
Step 8. Phoenix provides training but doesn’t hire the people for you.
Step 9. Once the site construction is done and you’ve had your technical training, Phoenix will assist in your soft and grand opening.
Franchise Details
Costs: Starts at Php3.5 million
Two types of franchises:
- CODO – starts at Php3.5 million
- DODO – starts at Php5 million
These include the brand reimbursement fee (Php550,000), equipment, and initial stock.
Every year, you’ll also need to pay a participation fee:
- CODO – Php50,000
- DODO – Php35,000
Area requirements:
- Lot area of at least 800 square meters
- Frontage of at least 30 meters
- Must be located near residential and/or commercial areas
- Must be along high traffic volume highways
Franchise terms:
- 5-year contract
- Renewable for another 5 years (but based on the station’s performance)
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