What should you know about purchasing gas station franchises?

Opening your own business is always exciting. A new business is fraught with many risks and unpleasant surprises. You can avoid many of them by concluding a franchise agreement with an experienced company that has already achieved success and now, for a fee, helps others achieve the same results.

One of the most profitable offers that can be found today is a gas station franchise. The return on investment for a gas station franchise in Russia is high. We will discuss below what nuances you need to know when starting your own business, and what points to pay special attention to.

Franchise card

Name of company : oil and gas Year of foundation of the company : 1995 Year of franchise launch : 2012 Number of enterprises : own: 1747 franchised: more than 2000 (in 50 countries) Lump-sum payment : (+re-equipment) 5,800,000 rub. Advertising fee : individual Royalty : from 100,000 rubles Initial investment from : 5,850,000 rubles Payback period : 5 years Monthly profit : about 130 thousand dollars Minimum size of the required area : about 300 m. sq. Regions of work : Russia, Ukraine, Kazakhstan, Tajikistan, Belarus, Kyrgyzstan, etc. Link to off. website with franchise conditions, contacts: https://www.gazprom-neft.ru

Cost calculation

The cost of the LUKOIL franchise (royalty) depends on the region and population in the area where the gas station is being built:

• RUB 398,000 per year - for gas stations located on a federal highway;
• RUB 357,000 per year - for gas stations in a city with a population of more than 500,000 people;
• RUB 217,000 per year - in other cases.

The lump sum payment (one-time payment when purchasing a franchise) is 400,000 rubles.

Table: initial costs

Table: monthly expenses

Franchising business concept

The main Russian tycoon offers:

1. The best products of (Moscow, Omsk and Yaroslavl) oil refineries: gasoline, diesel fuel and oils.
2. Petroleum products are only of high quality.
3. Good reviews from car enthusiasts as a result of long-term and trouble-free operation of the cars.
4. According to the latest data, 8.4 million tons were sold in the gas station network. fuel, which is 13% higher than the previous figure, with an average daily sales of 19 tons.

Entrepreneurs who have their own business in the fuel industry probably know that not all gas stations can provide sufficient profit and make the investment profitable.

An ill-conceived construction site , sometimes unsatisfactory quality of fuel, organization of work that requires a competent approach: these are the reasons that can affect the owner’s profit. All this can be avoided if you purchase a franchise and become a partner of the largest fuel company in the world.

A well-known brand will improve work, raise it to a qualitatively new level, and therefore make the business successful and developing. By guaranteeing stability and quality to the franchise enterprise, the company takes care of its development and prosperity.

Experience and understanding of the nuances of gas station operation in more than fifty countries around the world allows competent specialists to develop their own individual business tactics, which makes it possible to prevent troubles and difficulties in the operation of any station.

Don’t be confused by the proximity to another gas station; this will not affect the flow of your customers in any way. The success of a gas station with such a brand is guaranteed, since a little-known product most often causes concern among car enthusiasts.

A young enterprise must build its development concept so that the quality of service is always at the highest level, and compliance with technological standards is not violated under any circumstances.

These conditions are justified because they allow you to make the work as efficient as possible, and, as a result, receive high profits. A necessary condition for obtaining a franchise is the company providing a mutually beneficial concept.

This is a necessary condition for the possibility of individually considering an incoming request for long-term and mutually beneficial cooperation.

When purchasing a franchise, the gas station owner receives all the necessary documents, including a quality certificate, billboards, signs, stands, etc.

The first gas station under the Gazpromneft franchise was opened in 2012 in Ukraine on the Kyiv-Odessa highway. Of the total area of ​​240 square meters, half belongs to the cafe and store. Subsequently, three more such enterprises appeared on this route.

Pros and cons of working as a franchise

The advantages of gas station franchising include the following:

• the ability to use a proven business strategy and receive a ready-made business plan;
• regular consultations on legal and personnel issues: the copyright holder will tell you how to open a gas station under a franchise quickly and how not to “burn out”;
• working under a well-known brand, ensuring an influx of visitors and reducing advertising costs;
• assistance in developing the design of gas stations;
• obtaining contacts of trusted suppliers of fuel and equipment;
• assistance in solving problems of environmental safety and sanitary control.

Possible disadvantages include the need to strictly comply with the terms of the contract and the requirements of the franchisor, the inability to quickly exit the business, and the need to pay royalties. These disadvantages are more than offset by one advantage: according to statistics, 8 out of 10 gas stations opened as a franchise exceed the 5-year mark of operation on the market.

Advantages and disadvantages

The company's management is directly involved in the discussion of franchise cost issues.

The main advantages that the franchise provides:

1. A world-famous brand will have a positive impact on all aspects of business;
2. The agreement provides the right of access to all necessary information;
3. There is an opportunity to use proven business methods;
4. Opportunity to participate in collaboration at different levels;
5. Delivery and sale of products without interruption;
6. Timely provision of services related to employee training and internships;
7. Gas stations have a unique internal and external design;
8. The franchisee receives the opportunity for stable development and agency remuneration;
9. Participation in the company’s social projects and financial stability.

When concluding a franchise agreement, you need to understand that it provides for strict compliance with certain requirements. First of all, this concerns following the sophisticated style of the brand. So, for example, the size of the sign, the clothing of the staff, the appearance of the area around the gas station, including the placement of ballot boxes, must comply with certain requirements and standards.

This may require changes and adjustments to a well-established workflow, which may incur costs. Therefore, experts recommend deciding on the business format before opening a gas station, in order to avoid additional costs for reconstruction.

Competent professionals will provide timely advice on issues of income distribution and payment of taxes to the budget.

There are no restrictions on obtaining a franchise for foreign citizens, which provides ample opportunities for activities with foreign partners.

Full compliance of products with modern demands and standards will eliminate the occurrence of unpleasant situations during control and inspections.

What does the LUKOIL franchise include?

By purchasing a LUKOIL franchise, you get:

• the right to use the company’s individual corporate identity;
• the right to use the concern's trademarks;
• the opportunity to order high-quality fuel at discounted prices;
• right to corporate training.

LUKOIL Young Specialists Development Program

The contract specifies the period of cooperation. It is not possible to leave the business before the end of the contract, but you can extend the contract if you wish.

Premises requirements

The franchisee begins construction of a gas station in strict accordance with the recommended requirements, including:

• recommendations on the location of gas station construction;
• mandatory compliance with basic technical specifications that comply with regulatory documents for the implementation of safety regulations;
• the required number of branded elements must be used in the appearance.

If it is not possible to find a territory that meets the requirements, the partner offers its options for consideration.

If a gas station is built, its reconstruction is possible. As a rule, re-equipment consists of repainting the buildings located on the territory of the gas station to match the recommended color palette, the necessary fixing of the logo, work on the technical reconstruction of the equipment or its complete replacement.

The franchisee is obliged to provide gas station employees with branded overalls. Conversion costs can range from $10,000 to $50,000 if a construction crew is required.

Financial conditions

The initial investments included in the business plan (purchase of land, construction of a gas station, and equipment costs) amount to about 5,850,000 rubles. Monthly expenses are about 100 thousand dollars, while monthly income is about 130 thousand dollars. Thus, the payback will begin soon.

A balanced pricing policy, based on the interests of both parties, allows us to keep prices within reasonable limits, excluding their overestimation or reduction.

The cost of a gas station, the period for reimbursement of costs, are negotiated individually with the franchisor, taking into account the features and advantages . The company's experts provide complete information, clarifications and clarifications in a short time.

Payback of costs is individual, and is possible even after 12 months; this period is one of the shortest in Russia. One gas station is capable of providing 15-20% of income after the end of the reimbursement period.

What is included in the price and terms of the contract with the company

The cost of the franchise consists of: payment for land rent, the cost of a license from the Ministry of Fuel and Energy for the ability to store petroleum products, the cost of building a gas station, equipping a comfortable zone, and building an entrance. Considering the different cost of renting land (in the Moscow region it ranges from 100 thousand dollars), the cost of construction is completely different.

Gazpromneft franchise - the price is not specified and is not universal , but approximately it is about five hundred thousand US dollars. It is determined individually with franchisors, and today it is one of the minimum in Russia, about $700 per year.

Large companies that own their own network of gas stations can count on fruitful cooperation, but it is necessary to understand that the gas stations will not belong to the previous management.

After completion of construction work and an expert opinion, the Gazpromneft company buys the facility at the optimal price. As a result of this procedure, each gas station becomes the property of the company.

Rosneft gas station network

does not need any introduction, since this brand is widely known throughout the country and even abroad.
Rosneft is one of the largest oil companies represented on the international oil and gas market. Business partnership with Rosneft is a reliable and popular concept for doing business in Russia, as well as rapid payback and high profitability.

Rosneft's huge resource base means that the sales and re-production of raw materials are always uninterrupted and stable, and the company's solid scientific base actively introduces emerging new technologies into its work.

Advantages of cooperation with Rosneft gas stations

The advantages of working with franchising are quite enormous:

• a large target audience among motorists who purchase Rosneft fuel;
• absolutely the entire range of the Rosneft company meets all GOST requirements and European quality standards;
• extensive prospects for the growth of your business - you will be able to increase the scale of sales of oil company products, while constantly increasing the profitability of your business;
• Under the terms of the franchise agreement, franchisees are provided with regular supplies of fuel and other products for sale. Well-established activity patterns will allow you to run your business smoothly;
• The reliability and high profitability of partnerships with Rosneft gas stations is evidenced by many reviews from existing franchisees.

Here are just a few of them:

“I have been a partner of Rosneft since 2010. During this time, I increased fuel sales volumes three times compared to when I started. I get great pleasure from the partnership with Rosneft (A. Semenov, Kostroma).

“Until 2013, I owned my own gas station near Penza. Two years ago I decided to open a Rosneft gas station as a franchise at the site of my gas station, and I was right! The company’s recognition and the quality of the fuel made themselves felt - my profit increased almost fivefold” (D. Khasanshin, Penza).

The cost of a Rosneft gas station franchise includes a full cycle of training for franchisees and staff.

This means that by concluding a franchise agreement with, you will not only receive the rights to use the company’s marks and all documentation, but will also learn in detail about the important aspects of running this business during personal training.

Studying and choosing from the Catalog of the best franchises in Russia and Ukraine is the first step to starting a successful business with an easy and simple start. When making a decision to purchase a franchise, it is necessary to follow the professional recommendations of the section: “All about franchises.”

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You can become a franchisee using a franchising agreement by agreeing with the company management on the terms of the agreement, after sending a request for cooperation indicating your data and contacts.

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Conditions

Conditions that franchisees must comply with when constructing a gas station:

• locate gas stations according to requirements;
• observe the necessary safety measures;
• branded elements must be present in the appearance.

On average, the construction of a gas station will cost somewhere around 500 thousand dollars.

Basic requirements for obtaining a franchise:

1. You must have high solvency;
2. A respectful attitude towards the brand, which means a willingness to impeccably represent the enterprise;
3. You must have certain skills and abilities in the field of business activities.

The company's specialists regularly carry out audits of franchise stations, monitor the quality characteristics of fuel, monitor the level of customer service and its compliance with standards.

At the same time, Gazpromneft guarantees high-quality products at an affordable price. Fuel supplies do not depend on seasonal fluctuations in supply and sales, which is typical for the domestic market. Guaranteed fuel supplies are given great attention here.

Compliance with the agreement with gas stations is strictly controlled by special authorities . The franchisor may impose a fine of the order of hundreds of thousands of rubles, or, depending on the violation, terminate the agreement forever, which is extremely common.

This is a justified measure; it is carried out to avoid damaging the reputation of a well-known brand. Therefore, it is in the interests of the franchisee to ensure compliance with all clauses of the agreement.

Prospects

The feasibility of operating a particular gas station becomes obvious during the first year of operation.

A franchise business, a well-chosen location (high traffic, distance from residential buildings, absence of competitors nearby), the availability of additional services and attractive prices will allow you to develop a profitable business that will pay off in 3-4 years.

Despite the general attractiveness, the business associated with opening a gas station cannot be called easy: it requires numerous, quite significant investments, attracts close attention from various authorities, is associated with certain risks and develops within the framework of fierce competition. Nevertheless, competent calculation, a business approach and thoughtful steps will allow you not only to return the money invested, but also to make a significant profit.