Do you want to open a gas station business by buying BP franchise? If YES, here is how much it cost to open a BP gas station franchise successfully. British Petroleum (BP) has been running in the UK for 100 years, and is showing no signs of slowing down.
Primarily functioning as an oil and gas company, BP is the sixth largest energy supplier in the world and has a turnover to match. Globally, BP has over 18,000 retail sites and is a major franchising presence in the UK, US, and South Africa.
With top-quality systems and training solutions, BP Connect has always set the standard for brand recognition and leadership in the petroleum and convenience stores industry. BP Connect has approximately 200 locations in nine U.S. states, and is seeking expansion in the Midwestern and Eastern regions of the country.
BP Connect locations were first opened in the United Kingdom in 2000. The first U.S. stores opened in 2001 in Orlando, Florida, and Atlanta, Georgia. The BP Connect brand also has locations in Australia, New Zealand, the Netherlands and other countries.
What Do You Get When You Buy a BP Franchise?
As a BP franchisee, you will enjoy the opportunity to open up a BP gas station or a BP Connect store. BP Connect franchises tend to be the more popular option due to reduced cost and complexity. Irrespective of the route you take, the head office at BP will assist you with sales, marketing, customer service, safety, and all manner of concerns when beginning your journey.
With sights set on never-ending expansion and a more sustainable future, BP’s motto has always been growth and profit. The company’s logo is one of the most recognised icons in the UK and all over the world today.
BP Connect has two easily recognizable brands: M&S and Wild Bean Café. Wild Bean Café is a long-distance favourite with customers who fill up on aromatic coffee and ready-made food while they stop for petrol. The café is present in almost every single BP Connect and is a true ambassador of the BP brand. Ingredients are locally sourced and proudly British.
However, in 2005, the BP Connect family partnered with M&S to bring high-quality food and fresh produce into the store. An instant hit with customers, there are now 280 M&S mini stores just in the UK. The company also offers training and support programs that are as comprehensive as you would expect from a well-established brand. You’ll be connected with your area’s franchise manager and supported from the start.
Have it in mind that training for your staff, both pre-launch and on an ongoing basis is provided. As BP’s been around for over 100 years, the franchise has perfected its training programme for maximum growth in minimal time.
Financial Requirements of Opening a BP Gas Station Franchise
- Liquid capital required: $700,000
- Investment: $2,500,000 – $6,600,000
- Franchise fee: $30,000
5 Steps on How to Open a BP Gas Station Franchise
Opening a BP franchise can be a profitable venture, but it does require a huge investment up front. Although it is advisable to go with a franchise, it is not a guarantee of success. You still need to be as prepared as possible for the challenge of running your own business. Below are steps to acquire a BP Gas Station Franchise in the United States:
1. Choose a Suitable Location
Right before you start putting together the money to launch a BP franchise, you need to know if BP even operates where you live. Note that the company operates in 70 countries worldwide but doesn’t actually hit every state. If you’re in Nevada, Arizona, Montana or North Dakota, you might be totally out of luck.
Check BP’s website to figure out if opening a franchise near you is even possible. The company also requires franchise owners to own their own site or be in the process of buying the site before applying to open a franchise. Hence, you have to know your location before you make the jump, and you can’t lease it. You have to buy.
2. Raise the Cash for Your BP Franchise
Have it in mind that acquiring a franchise doesn’t come cheap. If you don’t have a huge savings, you’re going to need investors or a business loan. From our analysis above, it cost $2.5 million to upward of $6.6 million to open a gas station franchise like BP, though that includes salaries of staff for the first three months, buying land and the cost of all the equipment.
Constructing a facility with underground gas tanks and reservoirs can cost more than $400,000 alone. In addition, it is estimated that you’ll need around $700,000 in liquid capital plus a $30,000 franchise fee to open a BP franchise. The investment you make long term will likely be in the millions.
3. Get a Lawyer Who Specializes in Franchise Law
In the United States, franchises are heavily regulated. This is the more reason why you have to get the services of a great lawyer, and you’ll need to file the proper paperwork. These laws range from the federal franchise rules to state registration and disclosure laws.
Note that the former is regulated by the Federal Trade Commission and governs the sale of franchises throughout the United States. The latter is dependent on location. Places like Alabama and Alaska don’t require you to register your franchise, whereas Texas charges $25 for registration, and Rhode Island charges $600.
If the state you’re in doesn’t have its own franchise laws, you automatically default to the federal laws. More or less, the law requires you to file a franchise disclosure document. In the states that do not require this, you may have to fill out a business opportunity exemption notice instead.
4. Get the Proper Training
Note that this company is unique and ever ready to offer training to new franchisees. Training is without doubt required, but even if it wasn’t, it would be worth your while to attend. BP already has a track record of proven success, and new business owners can learn a lot about what works and what doesn’t.
5. Acquire Your Products and Hire Your Staff
Have it mind that you can’t run a BP franchise without gasoline. You can also choose to add BP’s lubricant range and Castrol range to your range of products and services. Irrespective of what you choose, now will be the time to stock your business and prepare for opening.
You will also need to hire your staff. Your employees should be kind, personable and responsible because good customer service is the best marketing tool a company can have. Once your staff are hired, it’s go time. Open your doors for business.
BP Connect has always set the standard in convenience stores with clean, modern, innovative locations where you’ll find not only a variety of sandwiches, pies, wraps and other sweet and savoury delights, but also a host of automotive supplies, and the Wild Bean Café, with great coffee and food.
Note that this company is a one-stop clearinghouse of all your needs on the go. The convenience store/café/filling station brand is owned by BP, the multinational British oil and Gas Corporation. The stores feature a sleek design and are known for having a kiosk with Internet.