Business

3 Gas Stations For Franchising And Their Costs In The Philippines

There are so many franchise options you can consider. You can go for food franchises, milk tea and frappe franchise, french fries franchise, and even shawarma franchise. But if you want to go big and have millions of pesos on a budget, go for a gas station franchise.

Image by Shell, Phoenix, and iFuel

We listed 3 gas stations available for franchising and dealership with their minimum initial investments. Franchising or being a dealer at a gas station can be a bit complicated because the requirements are more stringent, and most of the time, you have 2 options:

  • Company Owned Dealer Operated (CODO) – The dealer’s (you) role is to operate the station and order products from the company. But the company still owns the station.
  • Dealer Owned Dealer Operated (DODO) – This one is the more expensive one because you, as the dealer, will build, operate, and equip the station with products from the company.

Remember that this is just a guide, and you can directly reach out to the company for more updated details.

1. Shell

Minimum initial investment for CODO – average Php 5-8 Million
Minimum initial investment for DODO – average Php 10-12 Million
One of the leading, trusted, established global brands, you can expect that they already have a seamless process and being a dealer can be costly. The expected return on investment (ROI) is 15-20% per year and no franchise fees. If you’re applying for a DODO, you must have a commercial lot sized at least 600-1000sqm with 35-60m frontage. They have more detailed information on their dealership page.

2. Phoenix

Minimum initial investment for CODO – starting at Php 3.5 million
Minimum initial investment for DODO – starting at Php 5 millionPhoenix Petroleum is “distinctly Pinoy” because it’s a homegrown brand. From 5 franchises, they now have more than 500 stations all over the country. Phoenix has risen from 570th to 31st in the Top 10,000 Philippine Corporations in just 8 years. Aside from the investment, you will have to pay a participation fee of Php 50,000 for CODO and Php 35,000 for DODO every year. You can learn more on how to franchise a Phoenix gas station and for more details on dealership, you can check their website.

3. iFuel

Bulilit package: Php 6.5 million
Double island package: Php 8.5 million
Triple island package: Php 11.5 million
This is currently one of the fastest-growing local gas brands in the country because it offers affordable dealership. Many celebrities have invested in iFuel, like Ken Chan who has more than 5 branches. They offer 3 franchise packages you can choose from, ranging from Php 6.5 million to Php 11.5 million. You can check their website for details on the packages.

These are just 3 of the popular gas stations where you can look for dealerships or franchising opportunities. There are still more, but in order to request more information, you must provide personal information. But if you’re interested, go ahead and give it a try. Good luck!

Sally Mae
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