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Description
Investment Icon

What Are the Initial Costs to Open an ampm Franchise?

The initial investment for an ampm franchise ranges significantly, with costs starting as low as $313,861 and going up to $7,602,212. This includes a franchise fee of $30,000, along with other startup expenses. Franchisees should also be prepared to maintain a cash reserve of at least $50,000 and meet a net worth requirement of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to evaluate their readiness for this opportunity.

Fees Icon

What Are the Financial Performance Metrics for ampm Franchisees?

ampm franchisees can expect an average annual revenue of about $1,000,000 per unit, with a median revenue of $82,900. The highest reported annual revenue per unit is $1,400,000, while the lowest is $64,600. Additionally, franchisees can anticipate a breakeven time of approximately 12 months, making it vital to analyze these figures to gauge potential profitability and operational efficiency.

Revenue Icon

What Are the Ongoing Fees and Expenses for ampm Franchisees?

Owning an ampm franchise entails ongoing fees, including a royalty fee of 11% and a marketing fee of 5.5% of gross revenue. Franchisees should also budget for annual running expenses, which typically total between $77,280 and $81,280. These expenses cover rent, utilities, marketing, and administrative salaries, so it’s important to factor them into your financial planning to ensure sustained profitability.

Breakeven Icon

What Support Does ampm Provide to Franchisees?

ampm offers comprehensive support to its franchisees, including training and operational guidance to help navigate the complexities of running a convenience store. Franchisees benefit from the brand's established reputation, marketing resources, and ongoing assistance in optimizing their business operations. This support structure is designed to empower franchisees, whether they are first-time owners or seasoned investors looking to expand their portfolios.

ampm Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

11%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

5.5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$313,861 - $7,602,212
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$50,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$882,960
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$82,900
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,400,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$64,600
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Retail Franchises
Category icon A more specific division within the broader industry.

i Category:

Convenience Stores
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Donna Sanker
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

4 Centerpointe Dr. La Palma, CA 90623
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2001
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

BP West Coast Products LLC

ampm Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

217
The number of locations owned by independent franchisees.

Franchised Units i

208
The number of locations owned and run by the franchisor.

Corporate Units i

9
Units 2008 2009 2010
Total Units 510 325 217
Net Change YoY -185 -108
Franchised Units 334 245 208
Net Change YoY -89 -37
Corporate Units 176 80 9
Net Change YoY -96 -71
Investment About

Initial Investment

The ampm franchise offers a range of investment options, with a low initial investment starting at $313,861 and going up to $7,602,212. This flexibility allows aspiring franchisees to choose a model that aligns with their financial capacity and business goals, making it accessible for a variety of investors.

Potential About

Franchise Fees

To become an ampm franchisee, an initial franchise fee of $30,000 is required. Additionally, franchisees must pay an ongoing royalty fee of 11% of gross sales, along with a marketing fee of 5.5%. These fees contribute to the overall support and resources provided by the franchisor.

Metrics About

Financial Requirements

Franchisees must demonstrate financial stability, with a cash requirement of $50,000 and a net worth requirement ranging from $500,000 to $1,000,000. This ensures that franchisees have the necessary resources to successfully operate their ampm location and withstand initial operational challenges.

Fees About

Revenue Potential

ampm franchises show promising revenue potential, with average annual revenue per unit reported at $882,960. The median annual revenue is $82,900, while the revenue range spans from $64,600 to $1,400,000. This variability highlights the potential for growth and success in different market conditions.

Breakeven About

Breakeven and Payback

Franchisees can expect to reach breakeven within 12 months, alongside an investment payback period of the same duration. This quick turnaround is appealing for those looking to minimize risk and maximize return on investment in a relatively short timeframe.

Units About

Company Growth

The ampm franchise has shown a dynamic growth pattern, with a total of 510 units in 2008, which decreased to 217 units by 2010. The franchise system has evolved, with a notable shift from corporate-owned units to franchised locations, emphasizing its commitment to expanding through franchising and empowering individual entrepreneurs.

Frequently Asked Questions

The initial investment for an ampm franchise ranges from $313,861 to $7,602,212, which includes the franchise fee, equipment, and other startup costs.