Visit our franchise video section.
America's #1 Franchise Directory, Trusted for Over 15 Years

ampm Mini Market Franchise Cost & Fees

Date of Incorporation: 1978

Franchising Since: 1978

Headquarters: Warrenville, Illinois

 

Business Description: The franchisors are BP West Coast Products LLC (BPWCP) and BP Products North America Inc. (BPPNA).  BPWCP and BPPNA offer two separate ampm franchise programs dependent upon location. If the Mini Market is to be located in one of the Western States, then the franchisee will have the opportunity to purchase the Franchise program BPWCP offers. If the Mini Market is to be located in one of the Eastern States, then the franchisee will have the opportunity to purchase the Franchise program BPPNA offers.

 

Franchise Offer: The ampm franchise is a system for retail convenience mini market and fast food services and the identification, layout and operation of retail convenience and fast food mini markets identified principally by the service name and service mark “ampm.”   The franchisor offers the following franchise programs:

  1. New Construction - an ampm mini market that is newly constructed on real estate owned or leased by the franchisee;
  2. New Construction Rebrand - an existing convenience store that is not branded “ampm” that the franchisee will modify to comply with BP's current visual and design standards for an ampm mini market (the “Retrofit Program”) and other additional capital modifications to the Premises BP requires;
  3. Raze and Rebuild - an existing ampm mini market that the franchisee will construct at the Premises after the raze of an existing BP premises that purchased from BP;
  4. Retrofit - an existing ampm mini market, BP or BP Connect store that does not meet BP's current visual and design standards that the franchisee will modify in accordance with the Retrofit Program on an existing BP premises that the franchisee purchases from BP; or
  5. Retrofit Rebrand - an existing convenience store that is not branded “ampm” that the franchisee will modify to comply with the modifications and installations that BP requires which in no event will be less than the modifications necessary for the Retrofit Program.

 

Financial Assistance: The franchisor may offer the franchisee loans under the following programs.  Loans will not be offered to all potentially eligible franchisees and the programs, in whole or in part, may be modified or discontinued at any time:

  • DOFO Loan: At BP's discretion, BP may offer the franchisee a loan for authorized expenditures to be incurred in connection with New Construction, a New Construction Rebrand, a Raze and Rebuild, a Retrofit Rebrand, or for renewal improvements to the Mini Market if the franchisee participates in renewal of the existing Franchise Agreements (mid-term or at the end of the current term), if the franchisee: (1) does not lease the Premises from BP, (2) has acceptable creditworthiness and (3) meets other eligibility criteria, which may differ from area to area. 
  • PN Loan: If BP offers the franchisee the opportunity to purchase a site from BP on which the franchisee will operate an ampm mini market, BP may also offer a short-term interest only loan (not to exceed 60 months) for a portion of the purchase price of the real estate, building and equipment from BP. In order to be eligible for the loan the franchisee must have acceptable creditworthiness and meet other eligibility criteria, which may differ from area to area.
  • Acquisition and Development Loan: If the franchisee is purchasing vacant real property, BPWCP may offer a loan to fund a portion of the costs associated with the acquisition of the real property and construction of a new ARCO-branded fuel station and ampm mini market.

 

Training and Assistance: The franchisee (if the franchisee is a sole proprietor) or the Entity Designee (if the franchisee is a business entity) must at all times be one of the individuals who attended and successfully completed the then current training program for franchisees. The Transferee(s) or Assignee(s), if the franchisee sells or transfers your Franchise, or the successors-in-interest are also parties required to attend and satisfactorily complete the initial franchisee training program.   The Franchisee and Mini Market Manager Training is a blended learning training course, which means it will be a combination of online learning, at-site training, and instructor led learning. The training will consist of three basic parts: (1) Online training - commonly known as Computer Based Training (CBT), (2) At Site Experience (ASE), and (3) Instructor Led Training (ILT).   BP, at its discretion, may provide an internet-enabled Mobile Learning Kit to the learner to use for the duration of the Initial Franchisee Training Program.  The trainers providing instructor led training and the BP Mini Market Managers and/or the ampm franchisees, who will provide on-site training, have no less than 1 year of BP and/or ampm operational experience.  All training courses, programs, and tests offered by BP shall be given only in English. Therefore, in order to successfully complete any such courses, programs, and tests, an ability to read, communicate m and comprehend English and demonstrate basic math skills is necessary.  BP may, but is not required to, offer optional additional training during the term of the Franchise Agreement. If the franchisee elects to attend any optional additional training program, BP may require a fee not to exceed $1,500 per person per training program.  In addition to the optional additional training, BP may also require the franchisee to attend required additional training in connection with changes to programs or new programs or equipment added during the term of the Franchise Agreement.

 

Territory: The franchisee does not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets owned by BP, or from other channels of distribution or competitive brands controlled by BP.  BP has established and may establish other company-owned or franchised outlets that may compete with the franchisee’s location. BP retains all rights with respect to ampm Mini Markets, the marks, the sale of similar or dissimilar products and services, and any other activities deemed appropriate.

 

Term of Agreement and Renewal: The length of the franchise term is 20 years if the franchisee does not lease the Premises from BP, unless the franchisee and BP sign the Agreement Term Rider agreeing to a Franchise Agreement term of 10 years. The franchise term length is three years if the franchisee leases the Premises from BPWCP.  The renewal term is exercisable in the manner and subject to the conditions detailed in the franchise agreement.  The renewal/extension term is 20 years, unless the franchisee and BP sign the then current form of Renewal Rider agreeing to a renewal term of 10 years.  Renewal/extension is not applicable if the franchisee leases premises from BPWCP.

 

Obligations and Restrictions: If the franchisee is a business entity (other than a sole proprietor), then the franchisee must at all times have an owner owning 51% or more of the interest in the franchisee entity, acceptable to BP, expressly designated by the franchisee entity as the "Entity Designee." The Entity Designee must personally participate and manage the day-to-day operation of the Mini Market for at least 40 hours per week.   If the franchisee owns and/or operates one ampm mini market, then either the franchisee (if the franchisee is a sole proprietor), the Entity Designee (if the franchisee is a business entity), an Operational Designee designated (if the franchisee is a business entity) and/or a Mini Market Manager employed must personally participate and manage the day-to-day operation of the Mini Market for at least 40 hours per week.  The Entity Designee and the Mini Market Manager may be the same individual, and the Entity Designee and the Operational Designee may be the same individual, but the Mini Market Manager and the Operational Designee must be different individuals.  The franchisee must offer all products and perform all services BP periodically requires for ampm mini markets.

 

Estimated Number of Units: 2,420

 

Investment Tables:

Initial Investment

Name of Fee If Premises are Leased from BPWCP If Premises aren’t Leased from BP
Low High Low High
Initial Franchise Fee
- If the Mini Market is Located in the Eastern States
- If the Mini Market is Located in the Western States
$35,000
$30,000


$70,000
Travel and Living Expenses while Training $0 $9,000 $0 $9,000
ampm Equipment $64,461 $77,176 $273,565 $371,242
Merchandising Accessory Items $35,000 $150,000 $35,000 $150,000
Miscellaneous Opening Costs $40,000
Opening Inventory $30,000 $135,000 $30,000 $135,000
Working Capital $50,000
Business Licenses and Permits $8,500 $12,000 $8,500 $12,000
Sales Tax Deposit $10,000
POS Equipment and Back Office Computer System 1 POS N/A $0 $55,000
2 POS $35,000 $45,000
3 POS $37,500 $47,500
4 POS $40,000 $50,000
5 POS $42,500 $52,500
6 POS $45,000 $55,000
Security Deposit $1,400 $6,000 N/A
Additional Funds - 3 months $69,500 $131,500 $59,000 $100,000
TOTAL INITIAL INVESTMENT (ALL FRANCHISEES) $343,861 $655,676 $536,065 $1,002,242
Real Estate (35,000-60,000 sq/ft) N/A $300,000 $2,800,000
Real Estate Improvements N/A $0 $1,000,000
TOTAL INITIAL INVESTMENT (FOR PURCHASE OF EXISTING ampm MINI MARKET) N/A $836,065 $4,802,242
Real Estate (35,000-60,000 sq/ft) N/A $0 $2,800,000
Real Estate Improvements N/A $0 $1,000,000
Equipment. Labor and Signage Conversion Costs (if you are converting or retrofitting an existing mini market to an ampm mini market) N/A $75,000 $800,000
- BP Connect store to ampm mini market $75,000 $150,000
- BP store to ampm mini market $110,000 $485,000
- ampm mini market to ampm mini market $175,000 $550,000
- Non-BP mini market to ampm mini market $350,000 $800,000
TOTAL INITIAL INVESTMENT (WITH ADDED COSTS FOR A RETROFIT OR RETROFIT REBRAND) N/A $611,065 $5,602,242
Real Estate (35,000-60,000 sq/ft) N/A $0 $2,800,000
Raze & Rebuild/New Construction N/A $1,250,000 $3,000,000
Plan Costs N/A $0 $300,000
Government Required Off Site Improvements N/A $0 $350,000
TOTAL INITIAL INVESTMENT (WITH ADDED COSTS FOR NEW CONSTRUCTION, A NEW CONSTRUCTION REBRAND OR A RAZE AND REBUILD) N/A $1,786,065 $7,602,242

 

Ongoing Fees:

Type of Fee If Premises are Leased from BPWCP If Premises aren’t Leased from BP
Monthly Royalty Fee for Mini Markets located in the Western States:
(a)Minimum Monthly Royalty Fee
(b)Monthly Royalty Percentage
- 24-hrs. of Operation
- Less than 24-hrs
See Western States -State Specific Addenda

11% of Total Gross Sales
14% of Total Gross Sales
$1,000
Monthly Royalty Fee for Mini Markets located in the Eastern States Not applicable $1,000
Advertising and Promotion Fee for Mini Markets located in the Western States 5.5% of Total Gross Sales
Advertising and Promotion Fee for Mini Markets located in the Eastern States Not Applicable 4% of Total Gross Sales
Fee Verification Review or Audit Fee:
- If deficiency exceeds 2% in excess of sales actually reported
- If missing or incomplete records
- Amount of deficiency plus interest at the highest legal rate plus cost of review audit
- Cost of attempting to preform review
- Current cost of mystery shops
- Inventory Services
- If BP incurs a fee due to delay, recount, cancellation, postponement or any other reason
- if BP performs an inventory due to placement on the temporary audit program
- Cost of inventory
- Amount of fee
- Cost of inventory
Raze and Rebuild Construction Extension Fees Not Applicable $5,000
Retrofit Construction Extension Fees Not Applicable $3,000
Retrofit Rebrand Construction Extension Fee Not Applicable $3,000
Early Renewal - Retrofit Construction Extension Fees Not Applicable $15,000 for each extension
New Construction Extension Fee Not Applicable $5,000
New Construction Rebrand Extension Fee Not Applicable $5,000
Fee for Failure to Open on Commencement Date Not Applicable Per day, l/30th of the Minimum Monthly Royalty Fee
Accidental and Malicious Physical Damage to Premises, Mini Market and Loaned Mini Market Equipment Up to $1,000 per occurrence Not applicable
Rent Average $7,248/month Not applicable
Transfer Fee Based on length of time franchisee has been a Lessee $20,000
Additional Attendee, Transferee or Successor in-Interest Initial Training Tuition Fee Our then current rate, currently $7,500 for additional attendees, $15,000 for Transferees or Successors in-Interest
Additional Training Fee Not to exceed $1,500 per person per training session
Optional Training Fee Not to exceed $1,500 per person per training session
Training Forfeiture Fee $7,500 for failure to attend 1 training class and $15,000 for failure to attend 2 training classes without timely cancellation $7,500 for failure to attend 1 training class and $15,000 for failure to attend 2 training classes without timely cancellation
Computer Software License Fee $0 $300
Computer Software Upgrade Fee $0 Up to $1,500
Computer Software Maintenance Fee/POS/BOS Help Desk Support Service Fee $0 $3,096
Computer Hardware Maintenance Fee $0 The then current fee, currently:
$1,540 annually 2 POS
$2,000 annually 3 POS
$2,450 annually 4 POS
$2,910 annually 5 POS
$3,370 annually 6 POS
VSAT/DSL Service Fee $0 $99
POS/BOS System Multi-Site Conversion Cost $0 $800-$1,500 per additional site
Installation Preparation Work $0 Currently, not estimated to be more than $9,000
Renewal Fee $35,000 for a three year renewal If the Mini Market is in the Western States:
$55,000 – 20 year renewal
$40,000 – 10 year renewal

If the Mini Market is in the Eastern States:
$30,000 – 20 year renewal
$20,000 – 10 year renewal
Insurance Will vary under circumstances
Indemnification Will vary under circumstances
Costs and Attorneys' Fees Will vary under circumstances
Testing Cost of Testing
DOFO Loan Payments to BP for Construction/Improvements Financing Not applicable The interest rate is the then current rate (currently 4,004.25%. but subject to change)
Principal reductions payments are due annually over the term of the loan and are due and payable to BP within 60 days after the end of each contract year, and all are due and payable on the maturity date of the loan
PN Loan Payments to BP for Real Estate, Building, Equipment, and Existing Inventory Purchase Financing Not applicable The interest rate is the then current rate (currently 8% -10%, but subject to change)
Term of the loan will not exceed 60 months and payments are due to BP in monthly installments
Loan Payments to BCWCP for Acquisition and Development Financing Not applicable The interest rate is the then current rate (currently 4.25%. but subject to change)
Term of loan is 24 months but subject to automatic extension to be coterminous with term of Franchise Agreement and payments are due to BPWCP in monthly installments
Subordination Agreement Fee Not applicable $5,000
Loan Modification Fee Not applicable $5,000

 


The above information has been compiled from the FDD of ampm Mini Market. Year of FDD: 2011.

Franchise Direct's Disclaimer

 

 


Sign up to our newsletter and be notified about other franchise opportunities

Your E-mail Address

Confirm E-mail Address

 

You may be interested in the following franchises...

SpeedPro Imaging Join the country’s premier large format printing franchise with SpeedPro's superb B2B model. Min. Cash Required:
$50,000.
SpeedPro Imaging Franchise.

EarthWise Pet Supply Learn about the EarthWise Pet difference. It starts with our unique pet store atmosphere and feel! Min. Cash Required:
$50,000.
EarthWise Pet Supply Franchise.


Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

Yes, I have at least $50k to invest and I'm interested speaking with a Franserve affiliated consultant.

Terms and conditions apply. We respect your privacy

TRUSTe online privacy certification