Do you want to start a successful business by buying a Sunoco Franchise? If YES, here is how much it costs to open a Sunoco Franchise and the requirements. If you are looking towards opening a Sunoco Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.
The Sunoco Brand has stood for quality products and services for over 120 years. The Retail Marketing Business is comprised of approximately 4,700 retail gasoline outlets in 24 states, which are primarily supplied by 5 high-efficiency refineries that produce over 900,000 barrels per day.
With over 5 billion gallons of gasoline sold and $700 million of merchandise sales per year, Sunoco is a major retailer and recognized brand in the sale of gasoline and convenience store items. Sunoco’s retail outlets are primarily located along the east coast of the United States; especially the I-95 corridor.
Sunoco APlus® convenience stores are located along the east coast from Massachusetts to Florida and west into upstate New York and Ohio. Their 740 APlus stores carry national brand-named products, including: snacks, beverages, cigarettes, hot and cold lunches, and fresh-brewed Gulliver’s® coffee. Most of their stores are open 24 hours a day, seven days a week, 365 days a year.
Sunoco Ultra Service Center® automotive repair facilities are located along the east coast from New England to Northern Virginia and west into Pennsylvania. Their certified and highly-trained technicians use the latest on-line diagnostics to identify the problem and repair your car. They offer a 12,000-mile/12-month warranty with services performed at any Ultra Service Center or at any one of over 2,000 selected USC locations participating in the warranty program.
As one of the world’s largest producers of premium racing fuels, Sunoco Race Fuels embraces the determination to refine, blend, and supply only the highest-quality products. Sunoco’s track-proven fuels are designed to provide exceptional performance, quality, and consistency. Throughout the years, Sunoco Race Fuels has been used in all types of professional motorsports.
In 2004, Sunoco became the “Official Fuel of NASCAR.” Under the ten-year agreement, Sunoco provides racing gasoline for NASCAR’s three national series – the NASCAR Nextel Cup, NASCAR Busch Series, and the NASCAR Craftsman Truck series – distributing gasoline to more than 400 race tracks in the U.S. Here are areas where you are expected to spend money and the costs associated with it;
Financial Investment Required to Open a Sunoco Franchise
Initial Investment Range – $25,000 – $600,000
Franchise Fee – $30,000
Royalty Fee – 5 percent of Gross Sales
This fee is paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third – party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two – third majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Sunoco APlus franchise and its affiliates are also members of their respective local Cooperative and each company – owned Center has the same voting rights as the franchised locations within the Cooperative. If the company – owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Sunoco APlus franchise if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out – of – pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Sunoco APlus franchise if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Pods is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company.
- Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If requirements are met, franchisees can renew for one additional term of 5 years.
- Financial Assistance: Sunoco APlus franchise has relationships with third – party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Total estimated investment $250,000 to $600,000 (including estimated real estate costs)
- Liquid capital required: $125,000
- Franchise fee: $30,000
- Units in operation: 770