Texaco Xpress LubeTM Business Opportunities FAQ
If you have any additional questions that are not answered below, please send email to Xpresslube@chevron.com.
- What types of opportunities are available?
- What does Chevron provide?
- Financing - How much does the Texaco Xpress Lube business opportunity cost?
- What advertising support is provided?
- What kind of training is provided?
- What kind of continuing guidance is offered?
- Is there territory exclusivity?
- What are the land requirements?
- What are the considerations for site and/or market selection?
- Can the Texaco Xpress Lube business be combined with another business, such as a car wash or a gasoline convenience store?
- Are there any agreements to sign?
- What are the next steps?
What types of opportunities are available?
Chevron's Texaco Xpress Lube program is available to independent entrepreneurs and can help them own and operate oil change/preventative maintenance centers for cars and light trucks. They can display the Texaco and Havoline® brands and accept the no fee Chevron credit cards.
What does Chevron provide?
Chevron supplies you with the use of the Texaco Xpress Lube and Havoline® name and trademarks, the ability to offer the Chevron credit card, building plans, site selection assistance with a demographic report of the trade area, a professional training school and interior/exterior sign packages for your location. In addition, new accounts receive a New Customer Allowance for merchandise valued at $1,000.00. The Installer Advertising Allowance program provides an up-front annual advertising fund. Product incentives in subsequent years are tied to purchases and year-to-year growth.
Additional assistance* may include: financing, mailings to Chevron credit card holders in your marketing area, managed equipment program, POS computer equipment and software, and access to several national promotions each year.
*some items require a fee.
Financing - How much does the Texaco Xpress Lube business opportunity cost?
The estimated cost for each individual Texaco Xpress Lube business opportunity ranges from approximately $345,000 to $900,000. Initial capital investment required depends upon the down payment necessary for the debt financing used, if applicable, but will range from about $100,000 to $220,000 given the numbers above. These numbers include the building and site improvements as well as most everything else required to physically open a Texaco Xpress Lube. In addition, working capital during the initial months of operation and the soft costs of acquiring financing and getting under construction are included.
The estimated costs are broken out below:
| Business Need | Estimated Cost |
|---|---|
| Land | $75,000 - $300,000 |
| Building/Site | $150,000 - $400,000 |
| Computer System | $12,000 - $15,000 |
| Equipment | $20,000 - $35,000 |
| Furniture, Office Equipment | $1,000 - $3,000 |
| Initial Inventory | $12,000 - $20,000 |
| Training | $1,500 - $3,000 |
| Miscellaneous and Personnel | $6,000 - $10,000 |
| Grand Opening | $1,500 - $10,000 |
| Sign Installation | $2,500 - $5,000 |
| Soft Costs, Working Capital | $60,000 - $100,000 |
Total costs at the low end of the spectrum represent smaller facilities, leased sites, or purchasing existing independent facilities.
What advertising support is provided?
Chevron is committed to securing and executing effective national, regional and local advertising, sales promotion and sponsorships. These activities are designed to build, support and maintain the equity of the Havoline and Texaco Xpress Lube brands; and drive sales.
The Installer Advertising Allowance provides up-front funds for advertising.
| The Installer Advertising Allowance | Amount |
|---|---|
| Havoline Motor Oil | $.20/gallon |
| Havoline Synthetic Blend Motor Oil | $.50/gallon |
| Havoline Synthetic Motor Oil | $.50/gallon |
| Havoline Extended Life Anti Freeze/Coolant & Prediluted 50/50 |
.$20/gallon |
| Havoline Automatic Transmission Fluid | $.20/gallon |
| Greases/Gear Oils Texaco Starplex 2 Texaco Multifak EP 2 Multigear EP Multigear LS |
$.20/gallon (Calculated at 6 pounds per gallon.) |
Advertising and sales promotion efforts will often support relevant sponsorships such as:
- NASCAR Racing
- 2004 U.S. Olympic Team
- U.S. Soccer Federation
Chevron aggressively pursues and promotes other relevant sponsorships, promotional events and business building relationships.
Other advertising and sales promotion support will focus on the features, advantages and benefits of Chevron's leading edge brands and products.
Chevron remains committed to employing the strategic and creative resources to successfully advertise and promote its brands, products and services.
What kind of training is provided?
Without exception, successful Texaco Xpress Lube operators will tell you that one essential in a smooth and efficient operation - is well-trained personnel. Proper training requires the proper resources. Chevron is pleased to make available two very efficient and effective resources for training Texaco Xpress Lube owners and their personnel.
On-Location Training is your opportunity to learn the skills necessary to run a smarter Texaco Xpress Lube business. This week long comprehensive course includes computer training and hands on instruction at a designated Texaco Xpress Lube facility. Courses are provided in each region throughout the US each year. And when you complete the course, you'll earn a Texaco Xpress Lube Training Certificate.
The Texaco Xpress Lube Video Training Series, available in VHS or DVD, allows you to create your own new hire and/or ongoing training schedule. You can share this informative series with your entire team. It's jam-packed with great information. You can also choose between VHS or DVD to suit your available video equipment. The series includes everything needed to set up your in-store training program.
The series includes:
- Overview of Program
- Product Knowledge
- Safety Training
- Greeter, Courtesy Technician and Cashier Responsibilities
- Upper Bay Technician
- Lower Bay Technician
- Manager Responsibilities
- Managing People
What kind of continuing guidance is offered?
As an owner of an independent Texaco Xpress Lube, you will be guided by the Texaco Xpress Lube Standards of Operation and Appearance guidebook. In addition, you will have a Texaco Xpress Lube Branded Installed Account Manager assigned to your location for business counseling.
Is there territory exclusivity?
No. Because Texaco Xpress Lube is not a franchise, with franchise agreements; there are no contractual provisions for establishing protected territories. Every market has an assigned Branded Installed Account Manager who is responsible for developing their assigned area in the most efficient manner possible.
What are the land requirements?
Typically a three bay site requires about 20,000 square feet, for example 125' by 160'. Texaco Xpress Lube facilities can be built on less space if the site is next to, or utilizes public space such as driveways, parking lots or easements. As it is sometimes difficult to buy a lot this size (especially in major markets) retailers may need to get creative when working with developers, or buy more space than needed and seek co-developers, such as fast food retailers, to buy or lease sub-divided space on their lots. Of course, 2-bay buildings require smaller sites.
What are the considerations for site and/or market selection?
Consider "destination" areas with good visibility, easy access and located near other destination points—fast food, grocery, bank and convenience-related stores. Traffic counts of at least 15,000 to 20,000 cars per day and a relatively large registered vehicle population are key to supporting the business. Your local municipalities and real estate consultants may offer site analysis and recommendations.
Market demographics that can be provided by your Texaco Xpress Lube sales specialist play an important role in determining your business site. You'll want to consider the average household income, age, profession, gender and general lifestyles and attitudes before launching a site. Also, consider economic changes such as highway development, housing growth or other long-term trends.
Can the Texaco Xpress Lube business be combined with another business, such as a car wash or a gasoline convenience store?
In many cases, yes. Increasingly Texaco Xpress Lube facilities are part of a 'suite' of businesses; such as gasoline facilities, short or full tunnel car washes, convenience stores, or even quick service restaurants. Please work with your Texaco Xpress Lube sales specialist to insure competing brands are not in close proximity.
Are there any agreements to sign?
There is a Texaco Xpress Lube Sales Agreement, an Electronic Funds Transfer, and a Credit Card Agreement that must be signed.
What are the next steps?
If you're interested in the Texaco Xpress Lube business opportunity, send an email to Xpresslube@chevron.com and request to have a Texaco Xpress Lube Specialist contact you.