Fuel Franchising Business Opportunity

Fuel Franchising Business Opportunity


Electric vehicles might be the future, but in South Africa, relying on fuel is the reality. Infrastructure might prevent e-vehicles from taking over the way it has elsewhere in the world, but since road transport is still a major mode of transport for the majority of South Africans, this drawback also equals opportunity. Perhaps this is your opportunity to join the energy sector: Start a fuel franchising business.

There are two ways to start a business with fuel. The first is to buy an existing fuel business, the other is to apply to a franchise and create a fuel station or “petrol garage” as South Africans call it, from scratch. It is better to invest in a franchise opportunity because it is backed by the support of the franchise brand and its marketing, unlike attempting it on your own.

South Africa has quite a few fuel franchises. These include Shell, Elegant Fuels, Astron Energy, Total Energies (not accepting new applications in 2026), Engen, Sasol, BP, Gulfstream, Viva, Puma Quest and MBT Petroleum. For the purpose of this article, we will focus on the most popular, biggest brands in the country that are open for new franchise applications.

Astron Energy

Formerly known as Caltex, Astron Energy, the franchise requires its retailers to have the highest level of professional skills, business knowledge, enthusiasm, and commitment. The brand is the only fully integrated oil company with a Level 1 BBBEE status. “Fully integrated” means that they have a complete value chain, including retail, commercial, refining, and lubricants.

To become a franchise owner, you must be a South African Citizen with three to five years of experience in operating a retail business. You also need:

  • Mid-senior business management experience in a corporate environment
  • Be financially astute
  • Be customer-centric
  • Have an entrepreneurial and Innovative mindset
  • Be a hands-on, detail-oriented and process-driven.
  • Show leadership skills
  • Be principled and have integrity
  • Meet Astron Energy’s financial requirements.

This is vital because you will be a full-time service station operator.

Before applying, ensure that you are:

  • committed to Astron Energy’s core values of people, partnerships, and performance;
  • a passionate individual with respect for the brand and retail business;
  • an entrepreneur with entrepreneurial skills and business acumen to manage and grow the franchise.

When submitting your application, you will need to include a completed Franchise Application Form along with the following supporting documents.

  • A copy of your ID
  • Your CV
  • Copies of all degrees, diplomas or certificates
  • CIPC Legal Entity documents with share certificates and BBBEE certificates
  • Current fiscal year-end financial statements for any privately held business in which you may have an interest.
  • Financial information
  • Proof of own funds contribution, not funding from a financial institution.

The investment can cost you between R1,5 million and R20 million, depending on the location and station specifics. This calculation includes the cost of acquiring the property or land, the construction of the infrastructure (if it wasn’t an existing station), and the cost of equipment such as pumps. It also includes the cost of branding, royalties and franchise fees, salaries, utilities, and other operational costs.

Once you have submitted your application, it will enter a screening process. Shortlisted candidates will be contacted and invited to a panel interview, where they will be required to present a business plan and complete a psychometric assessment.

BP

Some fuel franchises may only allow you to buy an existing location, not to open a new site. BP is one of those companies. But that does not mean that you cannot go through the application process and be kept on file to be notified when a station becomes available.

The fuel brand prioritises the customer experience and holds a high standard for every prospective franchise partner. Complete the application form and send it to Supportretail1@bp.com along with the following documents:

  • Certified ID Copy
  • Company documents
  • Shareholding Certificate
  • Proof of Residence
  • Police Clearance Certificate
  • Business Plan
  • 5 Year Cashflow Projection

Applications will enter a verification process during which you will either be placed on a list of shortlisted candidates or rejected.

Shortlisted applicants will be asked to prepare a business plan and financial statements. Next, they will attend a screening interview and complete a psychometric assessment.

If your application is successful, you will receive an acceptance letter and a conditional letter of appointment. Lastly, you will need to attend a mandatory training course, which you will pay out of pocket.

Engen

Engen is part of the Vivo Energy group and seek like minded individuals to become involved in the oil industry. Prospective fuel franchise owners must demonstrate entrepreneurial flair and business acumen.

They invite interested individuals to register and go through the application process so that when an opportunity arises, they have a database of new franchisees.

Start by registering your profile on Engen’s website. Complete your profile by uploading your:

Although the initial investment for a fuel franchise is steep, there are additional income-generating opportunities through the partnerships with Woolworths, Wimpy, Steers, Debonairs, etc.

Sasol

Sasol calls its petrol stations “convenience centres”. The emphasis here is that there is synergy between the fuel-selling side of the business and the shop, and how it provides convenience to the customer by offering them the essentials.

When you invest in a Sasol fuel franchise, it consists of the forecourt (the area with the pumps), convenience store and bakery. Depending on specific criteria, a franchisee may expand to a quick-service restaurant and a car wash. However, it is expected that each unit will meet its specific standards and continue with training and excellent management that allows the unit to operate profitably as separate business units whose losses may not be offset by the other units.

Before you apply to become a franchisee, you must be able to demonstrate that you have the necessary skills and experience to run this business. The rigorous application process ensures that the successful candidate will have the ability to run a successful business, but also represent the brand in a positive light at all times.

You must be a South African citizen with a clean criminal record and a positive credit score.

Start by completing the Sasol Franchise Application Form and submit it with the required documentation:

  • A detailed CV highlighting relevant experience in sales, marketing, or operations.
  • Proof of unencumbered capital to demonstrate financial readiness.
  • Verified bank statements and proof of assets.
  • Copies of identification documents and qualifications.
  • Company registration documents (if applicable).
  • Detailed business plan including NPV
  • Police clearance

You will also need to provide proof that you can afford the specific outlet. Depending on the size and type of establishment, you have to have between 20% – 60% unencumbered cash of the total investment. The rest of the funds may be obtained via a loan.

Shortlisted applications receive an interview in which your business acumen, leadership skills, and understanding of operational requirements are evaluated. Next, you will need to complete the Sasol Psychometric Test, which could cost around R9 900 excluding VAT.

If you pass, Sasol will assist by conducting market research to determine the most suitable site for your franchise. But you will need to complete additional Sasol training, which will cost approximately R30 000, excluding VAT.

The energy sector in South Africa, especially when it comes to fuel, is an expensive business to start, and it will definitely not be quick cash. But if it is within your means to buy a franchise, this fuel franchising business opportunity might just be for you.



Source link