Steps on How to Franchise Phoenix Petroleum Gas Station

Steps on How to Franchise Phoenix Petroleum Gas Station

Are you a business aspirant who are looking for a business to invest? Well, you should consider the basic commodities that Filipinos needed. Speaking of it, among those is the fuel especially that there is an increasing rate in vehicle production. One of those quality and trusteed gas station is the Phoenix Petroleum gas station. If you want to franchise it, here is everything you need to know about the Phoenix gas station franchise, including the franchisee fee, package inclusions, and contact details so you can start your own Phoenix Petroleum franchise soon!

About Phoenix Petroleum

Phoenix Petroleum Philippines, Inc. (PNX) is a fast-growing oil company in the Philippines. Since its first station in 2005 in the southern region of Davao, it has expanded northwards to build a network of retail stations and commercial and industrial clients nationwide. In just 10 years, the company’s network has grown to around 450 stations nationwide.

It is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots, and storage and transport services. Its products and services are distributed and marketed under the PHOENIX Fuels Life trademark.

Main Products and Services Offered

The company’s operations are divided between trading, and terminaling and hauling services. Under trading, PNX offers its refined petroleum products and lubricants to retailers and industrial customers.

Phoenix provides hauling and into-plane services of Jet A1 fuels to airports and refueling of aircraft in key cities in Mindanao. Since 2005, Phoenix has been the exclusive logistics partner of budget carrier Cebu Pacific in all their flights in Mindanao.

Franchise Fee

Phoenix offers two (2) types of franchises:

Company-Owned, Dealer-Operated (CODO)

  1. Dealer-Owned, Dealer-Operated (DODO)

The franchise fee of the Company Owned, Dealer Operated (CODO) station costs between P2.5 million to Php 5.0 million.

The Dealer Owned, Dealer Operated (DODO) station, meanwhile, has a franchise fee of P4 million P5 million.

This fee already includes the brand reimbursement fee, equipment, and initial stock.

For CODO stations, Phoenix will secure the necessary permits. For DODO, the franchisee will secure the permits, but the company will provide assistance in the process.

The franchise contract is valid for 5 years and is renewable for another 5 years based on the dealer’s performance.

Other Franchise Costs / Investment

Depending on the gas station’s estimated prospective volume, the franchisee is charged a Brand Reimbursement Fee which ranges from P350,000 to P550,000 for DODO and P500,000 to P1 million for CODO stations.

The dealer has to pay the Brand Reimbursement Fee in full for the first five (5) years of dealership for the first station.

If the dealer acquires a second gas station franchise, a 50% discount may be applied if the performance of the first station was assessed as exemplary. Succeeding opportunities for other stations may be given a 35% if the first two (2) stations exceed operations and sales expectations.

In addition, franchisees must also pay a Participation Fee to be paid anually amounting to P50,000 for CODO and P35,000 for DODO, starting on the first year.

As for construction costs, whoever owns the station will shoulder the construction cost. This means for DODO, the dealer will shoulder construction costs. For CODO, it will be the company.

In both cases, the company will provide the customized building plans and design for the station. Only accredited contractors can build the station, but the franchisee may suggest recommendations.

For DODO stations, the dealer undertakes full responsibility of the gas station construction. The mechanical works will be the company’s. Phoenix Engineers will provide assistance and guidance in making sure standard specifications are met.

Franchise Package Inclusions and Support

  • Pre-operations
  • Site Evaluation Assistance and Station Lay-Out Assistance
  • Pre-opening and start-up assistance
  • Operations
  • Provision of Station Equipment (pumps, tanks and signage)
  • The Phoenix Operations Manual
  • Technical Training
  • Continuous research and product development
  • Continuing visits, guidance and business evaluation support
  • Marketing
  • Use of Phoenix brand, system and design
  • Local marketing and promotional assistance
  • Sales territory protection

Application Process

Fill out and submit the Franchise Application form and Letter of Intent or contact the Customer Service Hotlines 1-800-10-PNXFUEL (769-3835) and 0917-313-7011 to receive the documents.

The Retail Territory Manager assigned to your area will give you a call and meet to discuss your queries as a prospective business partner.

The proposed site will be evaluated and will have a traffic count. In case the site does not conform to Phoenix’s standards, other locations may be submitted or the applicant may choose from a pool of existing sites.

An interview will be conducted with the Dealer Selection Panel (DSP). This is with a team of executives who will ask about your background and commitment to operating a Phoenix station.

Upon passing the interview, the approved franchisee will sign a Franchise Agreement with Phoenix and pay the corresponding fees.

For CODO stations, Phoenix will secure the necessary permits. For DODO, the applicant will secure the permits, but he company will assist in the process.

The Phoenix gas station will be constructed in around four months and the staff will undergo technical training.

The company will assist the dealer during the soft and grand opening.

Contact Details

PLDT Toll Free: 1-800-10-PNX FUEL (769-3835)

Globe Toll Free: 1-800-8-PNXFUEL (769-3835)

Globe Mobile Numbers: 0917-313-7011 to 18

Smart Mobile Numbers: 0998-960-4246 to 53

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