The gasoline station industry is worth $100 billion. And if you want to open a gas station franchise there are dozens of brands to choose from. One of them is Chevron which has been operating for over 140 years.
How much does it cost to open a Chevron gas station franchise? The average cost is $1.5 million to $2.5 million per unit. You’ll also need a minimum liquid capital of $500,000 to qualify.
In this franchise review, I break down the average annual profits and disadvantages of Chevron below. Take our 7-minute franchise quiz find out whether or not this gas station business is the right one for you.
- Financial Requirements and Fees
- Average Sales / Revenue per Year
- Chevron Gas Station Franchise Facts
- How Much Does Chevron Gas Station Make in Profit?
- Advantages of a Chevron Gas Station Franchise
- Challenges of a Chevron Gas Station Franchise
- Is the Chevron Gas Station Franchise Right For You?
Financial Requirements and Fees
|Fees / Expenses||Financial Amount|
|Total Investment||$1.5 million to $2.5 million|
The financial requirements and fees to franchise Chevron are estimates as of the moment since the company has not provided any official information to become a Chevron franchisee.
But expect investments to be the millions since this is the usual investment range when it comes to franchising gas stations. Just think about how much goes into building a gas station and some the expenses that go along with it:
- Lighting and signage ($40,000 – $75,000)
- Gas pumps ($16,000 – $24,000 per pump), pipes, and underground fuel tanks ($25,000 – $30,000)
- Gas station canopies ($35,000 – $80,000)
- Convenience store building ($500,000)
- Land purchase (Variable depending on market.)
Average Sales / Revenue per Year
According to Macrotrends, Chevron Corporation generated $162+ billion in revenue for the year 2021 which is considered a 71.57% increase from their revenue in 2020 which was $94.692 billion. The decline in their revenue in 2020 was due to the pandemic and less consumers driving to work.
Keep in mind that just because Chevron Corporation is doing well, doesn’t mean that revenue will be passed along to you as a franchise operator. The markup per gallon of gas is only $0.15 from a gas station. Where a lot of your revenue comes from will be sales the attached convenience store of beverages, snacks, food, lottery tickets, tobacco and in some locations liquor.
Chevron Gas Station Franchise Facts
|Total Units||Over 300|
|Subsector||Energy (Oil and Gas)|
Chevron Corporation’s development started as early as 1876 by Demetrius Scofield and Frederick Taylor although during those times, the company was called California Star Oil Works. It was acquired by Pacific Coast Oil Co. and then went through a number of name changes and acquisitions until it finally settled on the name Chevron around the 1970s.
Chevron is known as one of the largest public companies in the world and is found in over 180 countries. They’re ranked 27th in the Fortune 500 list and is also recognized on Forbes’s Global 2000 list. They’re a giant in the petroleum industry and could even become bigger if they merge with another super company Exxon Mobil Corp. Talks of the two merging were heard around 2020 but there have been nothing official has come out of those discussions yet. But if it would happen, one can imagine just how big and powerful Chevron and Exxon would be.
Chevron Corporation owns 3 major gas station brands which are Chevron, Caltex, and Texaco. Each gas station carries Chevron brands and products such as fuel, lubricants, fuel additives (fuel system cleaners and injector cleaners), chemicals, marine products, base oils, and process oils. The company is known for using Techron, a fuel additive that helps maximize mileage, improves acceleration, minimizes emissions, and protects engine parts.
Aside from fuel products, some Chevron gas stations provide a variety of automotive services. If you’re a Chevron Auto Club member, you can get help with 24-hour Roadside Services such as emergency towing, lockout services, tire change, and battery jumpstart. This roadside assistance is also available nationwide.
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Chevron and Texaco gas stations are usually partnered with ExtraMile Convenience stores selling snacks and beverages. Not all Chevron and Texaco gas stations have an ExtraMile Convenience store attached to them so if you’re planning to franchise Chevron gas stations, it’s best to check if it comes with an ExtraMile Convenience store or not.
As of the moment, there are no exact financial requirements to franchise a Chevron gas station. No information is made available publicly unless you contact Chevron’s new business acquisition team. Contact details to speak with a company representative can be found here. Once you are able to contact the person in charge of the Chevron franchise in the area you’re looking for. They may be able to present to you the company’s Franchise Disclosure Document. Discussions for the franchise may only be done between you and Chevron to comply with states that have franchise registration laws.
Chevron has been around for over 140 years. They have over 47,000 employees. The CEO for Chevron at present is Michael K. Wirth. Their headquarters is located in San Ramon, California.
How Much Does Chevron Gas Station Franchise Make in Profit?
There’s not much data when it comes to showing Chevron gas station’s profits. But we can look at the business listings for a location sold in Needles, California. This specific location was being sold because the owner decided to retire.
Their data shows a net income of $335,000 for one units after all expenses.
- Average gas sales: 38,000 gallons per month. This sounds like a lot of gas (and it is), but it would only mean $5,700 in gross revenue for an owner making $.15. This is an excellent demonstration why most gas station owners don’t make their money selling gas.
- Labor Expenses: This gas station employed 7 full and part-time employees for a total expense of $16,000 month per month. What’s important to consider is that the hourly rate for employees has gone up significantly since this business listing. You could easily anticipate paying $20,000 – $25,000 in today’s job market.
Don’t expect every location across the United States to perform this way, however. This is only a snapshot of the performance of one unit over a certain time period. The performance of a gas station in Las Vegas will perform differently than a location in Minneapolis.
As for Chevron Corporation, the company has recently seen $15.6 billion in profit. This is considered a huge recovery from when they lost $5.5 billion during the pandemic. With gas prices near all-time highs at the time of writing, I don’t think we need to worry about the Chevron Corporation going bankrupt anytime soon.
Advantages of a Chevron Gas Station Franchise
There are several advantages when you franchise a Chevron gas station. Here are a few you can expect when you sign up with them:
As mentioned above, Chevron is a big name and is considered a super company in the petroleum industry. Their success is credited to their hard work for over 140 years. With them being in the industry for this long, you can be assured of a stable business model. Chevron is a globally recognized brand that commuters will recognize.
The Chevron name is well known globally. Though the gas stations are primarily in the United States, their products are carried by their other gas stations that operate outside of the country. Caltex, for instance, is another gas station owned by Chevron. They operate in mostly Asian countries and in Australia and New Zealand. So wherever you are, Chevron gives you an opportunity to franchise with them under a locally recognized brand.
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As mentioned above, Chevron doesn’t just sell fuel products. They also offer services. All you have to do is join their membership wherein you can avail of these 24-hour services. With this, your customers will not only come to you for fuel but will also keep on coming back for after sales services such as repairs and maintenance. The more reasons for a customer to visit your gas station the better.
Challenges of Chevron Gas Station Franchise
Despite Chevron being a large and stable corporation, they also have their disadvantages when you franchise with them. Here are a few challenges you can expect:
Chevron has had their share of legal challenges and more. There was a lawsuit regarding Chevron contaminating the Ecuadorian Amazon. There was also the huge oil spill in Angola in 2002 and the one in Rio de Janeiro in 2011. There were also the shootings in Nigeria. There is more to the list that we may not cover, but this goes to show how Chevron is entangled in so many lawsuits and controversies that it can be damaging to the business. As a future franchise owner, expect to deal with concerned citizens and environmental activists that might make their presence known in your area.
Lack of Franchise Information
The lack of franchise information makes it hard for potential business investors to franchise a Chevron gas station. It would be great if Chevron can provide a basic guide on what to expect when one is interested in franchising with them before directly talking to their team. But no information or guide can be found unless you talk to their representative.
Pressure from Environmentalists and Future Technology
The future seems to be headed toward electronic vehicles instead of gasoline and diesel. In 2020, 4.1% of all car sales were electric. That’s more than double the sales figures from only 5 years ago.
As more consumers make the shift to electric, there won’t be as much of a reason to stop at a gas station / convenience store. Gas stations will eventually need to find a way to adapt like creating fast charge stations. While this reality is likely a more than a decade away, it’s a market shift worth considering if you plan to be a longterm owner / operator of this brand.
Is the Chevron Gas Station Franchise Right For You?
There’s no debate about it. Franchising gas stations are expensive. The range for a Chevron gas station as mentioned above is $1.5 – $2.5 million to open a single unit. If you have the financial capabilities to franchise one, you’ll also need to weigh the pros and cons and whether or not a gas station is profitable.
For a lot of people, gas station profits rely on the convenience stores they are attached to and not from the fuel they provide. So carefully think this over before you franchise a Chevron gas station.
Is there an alternative Chevron gas station franchise?
You may want to consider opening a convenience store in place of a gasoline station. Some convenience stores are partnered with a gas station as well or you can also remodel an existing gas station.
One convenience store you can check out that also may be added with a gas station is 7-Eleven. They’ve been franchising since 1946 and have over 71,000 units. They’re also known worldwide so you don’t have to worry about marketing the brand.
To franchise 7-Eleven, expect total investments to be around $37,200 to $1,635,200. For a more information, check out our detailed guide on 7-Eleven here.
There you have it! I hope this guide helps you understand more about Chevron and the products and services that they offer.