The company has been franchising for three years, with six franchised outlets in Australia. The minimum cost of purchasing a turnkey franchise is $450,000.
United Petroleum is the largest independent fuel and convenience offering in Australia with more than 234 sites nationwide. There has been strategic expansion in petrol and convenience store retailing, the development of own-brand products and wholesaling of petroleum products and LPG.
This petrol retailer offers ethanol petroleum products at all sites, giving franchisees a big market advantage. Users of petroleum products containing ethanol pay less, and get the benefits of a cleaner burning fuel.
The company’s support structure includes expertise in fuel and consumer goods retailing, merchandising, repairs and maintenance, training, audit and compliance.
Every franchisee has off-site training over two weeks in a purpose-built training centre followed by two weeks training on-site while an experienced field support team, a comprehensive operations manual and an online intranet program that acts as an ongoing guide and resource.
Franchise agreements are for five years with two options to renew. Franchisees pay a franchise fee and goodwill for existing sites and buy their initial stock, but there are no costs for fuel, equipment or shop fit-out. One cent per litre commission is paid on the volume of petrol sold. Franchisees pay a royalty on the shop turnover, which is set at a fixed percentage.
United’s plans are to continue increasing its presence across all states of Australia. This growth is continually supported by an upgrading of all its POS systems, continued improvement on training, investment in site upgrades and an increased focus on the overall merchandise offer.