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Franchise Agreement


By investing in a Caltex Star Franchise, you will be granted a non-exclusive license to use the Caltex system, image, trade marks and other intellectual property during the term of the franchise agreement, for the purpose of operating the Caltex Convenience Retail Business.

Caltex operates a "single site operator" franchise model. This typically includes:

  • 5 years + 5 year option (Note: If you purchase an existing Caltex franchise you will be purchasing the existing tenure).
  • an initial fee for the value of the franchise;
  • royalties on shop turnover
  • a monthly rental amount for the use of the site and the Caltex Brand. This will vary according to such factors as the size of the premises, the historical volume of sales from the site the facilities present and the location of the site.

The initial investment can vary from store to store and can range from $150k to $800k. We will be able to provide specific information regarding this if, following completion of your application, you are invited to an interview.

A complete list of fees will be provided to you in your disclosure statement and franchise agreement and Caltex requires all franchisees to get independent accounting and legal advice.

Purchasing an Existing Franchise

Caltex has a mature franchise network. The majority of franchised 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. The purchase price of an existing Caltex franchise business will vary according to such factors as:

  • the remaining term of the franchise;
  • the historical volume of sales from the site (often relating to profitability);
  • any “value of franchise payment” that you negotiate with the existing Franchisee;
  • facilities (and equipment) available at the site;
  • location of the site;
  • inventory (fuel and convenience retail product).

If a site also operates a workshop or conducts other additional business activities, those activities (and associated equipment) could be factored into the purchase price as well.

Some other amounts payable by the Franchisee directly, in relation to operating the business

  • Payroll tax;
  • Workers compensation and superannuation;
  • Insurances;
  • Business licences, permits and taxes;
  • Minor repairs and maintenance;
  • Security equipment;
  • Risk Management Plans;
  • Cleaning;
  • Gardening;
  • Utilities (electricity, telephone, gas); and
  • Inventory variations / spoilage / wastage / store supplies.

Please note the costs, expenses and fees listed on this website are indicative only and not intended to be exhaustive. If you are considering becoming a Caltex franchisee, further details of the fees and charges will be provided to you during the application process and Caltex expects its franchisees to obtain independent accounting and legal advice.




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