Chevron is a global energy company with headquarters in California that works in every area of the oil and gas business. The business is renowned for having a vast network of over 8,000 gas stations around the world. But whose property are these Chevron stations?
Contrary to popular assumption, not all of Chevron’s gas stations are owned by the company. In actuality, franchisees—independent company owners—run around 75% of the Chevron-branded gas stations in the United States. In exchange for a franchise fee and ongoing royalties, these franchisees sign a contract with Chevron granting them permission to use the company’s name, logo, and branding.
Franchise operators make money by purchasing goods from Chevron at a discount and then reselling them to customers at a markup. They also make money by selling convenience store goods like snacks, drinks, and vehicle supplies. These products often have a larger profit margin than gasoline, which makes them a significant source of revenue for franchise owners.
So, who is eligible to own a Chevron franchise? The quick response is no. A sizable financial and professional investment is necessary to open a Chevron franchise. Candidates must have a minimum net worth of $750,000 and $250,000 in liquid assets. They must also have previous experience running a business successfully, as well as knowledge of the retail or service sectors.
There are several other franchises outside Chevron for individuals wishing to enter the market. In fact, the food and beverage sector has some of the simplest franchises to launch, including coffee shops, sandwich chains, and pizzerias. Compared to those in the oil and gas industry, these franchises frequently have lower startup costs and fewer onerous criteria.
In conclusion, although being a significant player in the gas station sector, Chevron does not own every station. Independent franchisees that engage into a contract with the corporation in exchange for the right to use the Chevron name and branding own the majority of the stations bearing the Chevron brand. There are many other franchise options available for those wishing to start their own business, but becoming a Chevron franchisee takes a sizable investment and experience.