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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? 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 Star Mart and Star Shop (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.
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 management of their
business on a full-time basis.
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.
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.
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 for approved multi-site operators is four.
Q6. Will my convenience store have a Caltex service station with it?
A. Currently, most convenience store 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-bycase
basis.
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 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.
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.
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.
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 necessary throughout the term of the franchise. This
training may include people management, customer service, merchandising and business operating
systems
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.
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.
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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