How to Franchise: SEAOIL Gas Station
One of the leading independent fuel companies in the country is SEAOIL. Interested to find out how you can manage your own SEAOIL Philippines gas station? Continue reading below to know more about the SEAOIL franchising deal.
About SEAOIL Philippines
SEAOIL Philippines Inc. is known for its promise of “Fueling a Better Future.” The company started with only one gas station in 1997 but fast forward to today, SEAOIL now has over 350 stations all over the Philippines, making it one of the country’s largest independent fuel companies.
SEAOIL takes pride in the fact that its franchising program has been previously recognized by various franchise award-giving bodies. According to the company, some of the awards they received include the “Best Homegrown Franchise” award in the 2010 Entrepreneur Magazine Franchise Awards, “Best in Franchise Support” in 2009 also by Entrepreneur Magazine, and “Outstanding Filipino Franchise of the Year” award in 2006 and 2007 given by the Philippine Franchise Association, the Department of Trade and Industry (DTI), the Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Retailers Association (PRA).
Franchise Fee and Investment Cost
How much exactly does it cost to operate a SEAOIL franchise? As listed in BPI’s Ka-Negosyo Franchise Finder website, the SEAOIL franchise fee is P500,000.
However, the total initial investment required to start operating a SEAOIL franchise could reach P2 million to P8 million.
Take note that in addition to the initial investment above, franchisees also pay a monthly royalty fee of 2% of the total gross sales per month.
Depending on the size and location of the gas station, the company says that payback period is expected to be 4 to 5 years. The SEAOIL franchise term is 5 years, which may be renewed subject to terms and conditions.
Franchise Package Inclusions
The franchise investment already covers the following package inclusions:
- Station Construction
- Dispensing Pumps
- Underground Tanks
- Franchise Support for Logistics and Marketing
- Training Program
- Assistance and guidance in sales trend analysis, product promotions, and business development
Location / Site Requirements
A SEAOIL gas station must have frontage of at least 25 meters, while the lot size should be 375 sqm and above.
Interested franchisees may choose to franchise an existing station or build a new one on an approved location. Also, the different types of equipment to choose from include Electronic Dispensing Pumps, Mechanical Dispensing Pumps, and Underground Tanks ranging from 2,000 to 6,000 gallons.
Follow these steps if you’re planning to be a SEAOIL franchisee:
- Submit a Letter of Intent to SEAOIL’s Marketing Department, stating your desire to become a SEAOIL franchise dealer.
- Fill out the Franchise Application Forms.
- Submit the forms, together with (i) a photocopy of your Community Tax Certificate, to be used in executing a Franchise Agreement and Equipment Lease Contract; and (ii) Bank Certification and/or Financial Statement indicating cash and/or assets amounting to at least P3.8 million.
- The Reseller Department will evaluate your application. The franchisee will be informed of any further requirements, if any.
- Together with a SEAOIL representative, you will discuss the details of the Dealership Agreement and other pre-requisites.
- You will then be asked to submit at least 10% of the Dealership Fee in order to fund the actual evaluation of the proposed site.
- Upon the finding of the Business Development Officers that the site is suitable for the construction of a gasoline station, the applicant will be one step closer to becoming an actual dealer of SEAOIL.
Visit the company website (www.seaoil.com.ph) and fill out the online form in order to get in touch with a franchising representative from SEAOIL. For additional questions, you may contact them at:
SEAOIL Philippines Inc.
22nd Floor, The Taipan Place
F. Ortigas Jr. Road (formerly Emerald Ave.),
Ortigas Center, Pasig, Philippines
Telephone Number: (02) 397-1010, (02)310-5110
Interested in other franchising opportunities? Click here to view our Complete list of Philippine companies available for Franchising
Information and Photo Sources: Official Company Website (seaoil.com.ph), SEAOIL’s Facebook page, ABS-CBN News, BPI Ka-Negosyo Franchise Finder
View Related Posts