1. How long is a franchise term?
2. Can I own my site but have a manager run
day-to-day operations?
3. Are all applicants accepted as
Franchisees?
4. Can I have a Caltex Franchise if I own my own
site?
5. Can I have more than one franchise?
6. Will my Star Mart store have a Caltex service
station with it?
7. Does Caltex have a Franchise Advisory
Council?
8. Will my franchise have an exclusive
territory?
9. What's to stop someone else building a site in the
same area?
10. What standards do I have to comply
with?
11. Will I receive any training?
12. Will there be any training for my
staff?
13. This all sounds pretty busy. Will I have any
fun?
14. How much will a franchise cost me?
Q1. How long is a franchise
term?
A. New franchise agreements for Caltex Star Marts (on
premises owned or leased by Caltex) will generally have a term of 5
years plus an option to renew for a period of 5 years.
Alternatively, if you acquire an existing Caltex franchise business
(for example by way of an assignment) you will be acquiring the
remaining tenure of the relevant existing franchise agreement -
which will, of course, be less than that for a new franchise
agreement.
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Q2. Can I own my site but have
a manager run day-to-day operations?
A. No. Caltex generally operates pursuant to a single site operator
franchise model. Accordingly, franchisees themselves are expected
to run the day-to-day operations on site. We attribute part of the
success of Caltex's franchise system to the fact that our
franchisees provide on-site leadership of their business on a
full-time basis.
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Q3. Are all applicants accepted
as franchisees?
A. No. We have a clear picture of the attributes, business
knowledge, flair, commitment and personality needed to operate
within our Caltex retail network. Accordingly, our recruitment and
selection system is designed to ensure we get the right people to
promote the Caltex brand identity throughout the Caltex retail
network.
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Q4. Can I have a Caltex
franchise if I own my own site?
A. Yes. Naturally you will need to meet the strict
selection criteria that Caltex uses to assess the attributes of
potential franchisees. We would also inspect your site and assess
whether it meets the requirements (including standards of
presentation) of our Caltex retail network, and is compatible with
Caltex's retail network strategy.
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Q5. Can I have more than one
franchise?
A. Franchisees who perform exceptionally well may be given
the opportunity to apply to operate a second site, but our main
focus is currently on single site operators who drive their daily
business. The maximum number of sites for approved multi-site
operators is four.
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Q6. Will my convenience store
have a Caltex service station with it?
A. Currently, most convenience stores are attached to a
Caltex service station (also known as a Caltex forecourt).
Opportunities for stand alone convenience stores (with no service
station attached) are reviewed on a case by case basis.
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Q7. Does Caltex have a
Franchise Advisory Council?
A. Yes. Caltex values contributions from our franchisees.
Caltex has established a franchise advisory council in each
major region. Each regional franchise advisory council is
comprised of 4 - 6 franchisee members. A representative from each
franchise advisory council then makes up the national franchise
advisory body. We also have franchise development teams to assist
in developing new initiatives for the Caltex franchise
system.
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Q8. Will my franchise have an
exclusive territory? What's to stop someone else building a site in
the same area?
A. No. There is no exclusive territory. Competition is
strong and a competitor may build in your area if they believe the
economics are good.
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Q9. What standards do I have to
comply with?
A. All franchisees are required to maintain strict
standards at all times during the franchise term. Compliance
requirements and standards are set by Caltex from time to time and
then communicated within the Caltex retail franchise network.
Compliance by each franchisee with these requirements and standards
is measured monthly. Any failure by a franchisee to comply with our
requirements and standards could result in their franchise
agreement being terminated. We believe compliance with our strict
requirements and standards is critical to the success of the Caltex
retail network, and we expect the high standards to be maintained
at all times.
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Q10. Will I receive any
training?
A. Caltex places a high emphasis on training. Before
becoming a Caltex franchisee, you will be required to undergo a
detailed training program on the Caltex franchise system, which
consists of both classroom and on-site activities. You must achieve
the requisite level of competence in all aspects of this training
to Caltex's satisfaction before Caltex grants its final approval
for you to operate a Caltex franchise. Attendance at on-going
training programs is also required throughout the term of the
franchise. This training may include people management, customer
service, merchandising and business operating systems.
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Q11. Will there be any
training for my staff?
A. We believe an important factor that will have a direct
impact on the success of your franchise business is staff training
and motivation. As a franchisee, you will be required to train and
motivate your staff. Caltex assists franchisees in this regard by
offering training tools and incentive programs that may assist you
in retaining high-quality staff and developing essential skills for
you and your team.
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Q12. This all sounds pretty
busy. Will I have any fun?
A. Of course! Running your own business is hard work, but
aren't you working hard already? Having a franchise means you enjoy
the rewards of your own efforts.
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Q13. How much will a
franchise cost me?
A. Caltex has a mature franchise network. Most sites have
been trading for over ten years. When you apply to become a Caltex
franchisee, it is likely you will have the opportunity to purchase
an existing Caltex franchise business. Your initial investment can
vary from store to store. However. it can range from $150k to
$800k. We will be able to provide specific information regarding
this, once you have completed an application and if you are then
invited to an initial interview.
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