What Should Be in A Convenience Store Fuel Contract?
Feb. 11, 2020
Convenience stores often sell a large range of goods and products. It is not uncommon for a convenience store to sell fuel. This increases profit potential and makes the store more likely to grab a share of the local market since people will often buy the types of goods it sells when stopping to get gasoline. Most stores contract with an oil company to get the fuel for its store.
NACS explains the fuel contract enables them to get the product they need to supply their customers while offering some protection for them in the deal. There are several things that you want to have in the contract to ensure there will not be issues.
You want to make sure the contract stipulates any image requirements. This is including the oil company brand in advertisements and around your store location. The requirements may spell out exactly what you must do and could include financial compensation for certain image requirements. These may also include regulations for cleanliness and service.
The contract should also explain the length of the agreement and how much fuel you will get. It will lay out delivery schedules and amounts you receive. It will also usually cover what happens should there be a shortage or other delay in delivery.
Finally, a contract will cover how much you should price the fuel at and how much you will pay for it. This does fluctuate, so the oil company will usually base this on certain indexes instead of giving an actual price.
It is important that you understand all the terms of your contract. Unknowingly violating your contract terms could lead to litigation for breach of contract.