ampm Mini Market
Date of Incorporation: 1978
Franchising Since: 1978
Headquarters: Warrenville, Illinois
Country: U.S.
Description: The franchisor, BP Products North America Inc. –a wholly-owned subsidiary of BP p.I.c., an English public limited company – oversees ampm Mini Market. 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." ampm Mini Markets offer prepackaged foods and fast foods, beverages, sundries and convenience store goods and services.
Franchise Offer: The franchisor offers two separate franchise programs:
i.) Single Franchise Program: Under this program, the franchisee will execute an ampm Mini Market Agreement to operate a single ampm Mini Market at a location which the franchisee chooses and which the franchisor must accept.
ii.) Area Development Program: Under this program, the franchisor assigns a defined area within which the franchisee must develop and operate a specified number of ampm Mini Markets within a specified period of time.
Financial Assistance: The franchisor may offer the franchisee a loan for authorized expenditures to be incurred by the franchisor, in connection with the establishment of an ampm mini market franchise, if the franchisee 1) has acceptable creditworthiness and 2) meets other eligibility criteria.
Training and Assistance: The training will consist of three basic parts, combining online learning, on-site training, and instructor led learning. Overall classroom hours can be up to 120 hours, and ‘on-the-job’ training can total up to 80 hours. Training is based at BP's facilities in the US in which the premises is located. The franchisee and Mini Market manager or operational designee must have attended and successfully completed the then current training program.
Territory: The franchisee does not receive an exclusive territory. The franchisee may face competition from other franchised and company-owned stores. BP has established and may establish other company-owned or franchised outlets that may compete with the franchisee’s location. The franchisor 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. The agreement does not contain any provision for renewal.
Obligations and Restrictions: The franchisee must personally participate and manage the day-to-day operation of the ampm Mini Market at least 40 hours per week. The franchisee must at all times be one of the individuals who attends and successfully completes BP's then current training program for mini market managers and operators.
Total Number of Units: More than 3,000 ampm stores on three continents.
Investment Tables:
Initial Investment:
| Name of Fee | If Leased from BPWCP | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 | |
| Travel and Living Expenses while Training | $0 | $9,000 | |
| ampm Equipment | $66,917 - $80,948 | $290,823 | $394,065 |
| Merchandising Accessory Items | $35,000 - $150,000 | $35,000 | $150,000 |
| Miscellaneous Opening Costs | $40,000 | $40,000 | $40,000 |
| Business Licenses & Permits | $9,000 | $9,000 | |
| Sales Tax Deposit | $10,000 | $10,000 | $10,000 |
| POS Equipment and Back Office |
$35,000 (2 POS) $37,500 (3 POS) $40,000 (4 POS) |
$35,000 (2 POS) $37,500 (3 POS) $40,000 (4 POS) |
|
| Additional Funds —3 months | $69,500 - $131,500 | $59,000 | $100,000 |
| Total Initial Investment | $346,317 - $659,448 | $585,823 | $1,015,065 |
| Real Estate (35,000-60,000 sq/ft) | $450,000 | $1,250,000 | |
| Real Estate Improvements | $0 | $600,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Monthly Royalty Fee (a) Minimum Monthly Royalty Fee (b) Monthly Royalty Percentage - 24-hrs. of Operation - Less than 24-hrs. |
$1,000 |
| Advertising and Promotion Fee | 5.5% 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 perform review - Current cost of mystery shops |
| Inventory Service Fee: - If the franchisee disputes the inventory results and the recount is within 2% of first Inventory. - Inventories by Service other than that made available by BP. - If the franchisee cancels or postpones an inventory, payable only if BP incurs a fee. |
- Cost of second inventory (recount) - Cost of inventory count by service provider of franchisee's choice |
| Fee for Failure to Open on Commencement Date | Per day, 1/30th 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 |
| Transfer Fee | $20,000 |
| Additional Attendee, Transferee or Successor in-Interest Initial Training Tuition Fee | The then current rate, currently $7,500 for additional attendees, $15,000 for Transferees or Successors in-Interest. |
| Additional Training Fee | Not to exceed $1,000 |
| Computer Software License Fee | $300 |
| Computer Software Upgrade Fee | Up to $1,500 |
| Computer Software Maintenance Fee / POS/BOS Help Desk Support Service Fee | $3,396 |
| Computer Hardware Maintenance Fee | The then current fee, currently $1,500 per year |
| Telecom Fee | Currently, $96 |
| VSAT/DSL Service Fee | $90 |
| Renewal Fee | $30,000 |
| Insurance | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Testing | Cost of Testing |
| Delayed Development Fee | $1,000 |
| Post-Termination Marks Violation Fee | - $500 per day for each Major Violation - $100 per day for each other violation. |
| Loan Payments to BP | The interest rate is the then current rate (currently 4.5%, but subject to change). |
| Loan Payments to affiliate (EGI) | Monthly loan payments will vary. The interest rate is based on Corporate Receivables Corporation's commercial paper rate, and will vary among franchisees |
Date of FDD: 2009
The above information has been compiled from the FDD of ampm Mini Market along with online sources.
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