It looks like the era of BP convenience stores in Central Florida may have come to an end.
Circle K Holdings recently agreed to purchase 29 BP franchises from Florida Oil Holdings and reformat them as Circle K stores. The 29 franchises that were purchased are believed to be all the BP stores in the Central Florida region.
Circle K has about 400 stores in Florida and 5,800 stations worldwide.
It will be interesting to see whether this is the beginning of the end for BP stores in general, not just in Central Florida. BP stores were boycotted in the wake of the April 2010 Deepwater Horizon disaster in the Gulf of Mexico, which led to disastrous financial results for the convenience store division of BP. Also, one consultant who studies convenience stores said most investors who purchased BP franchises wound up being unhappy with them. The franchise agreements were often described as "expensive" and "overly restrictive."
Franchise agreements are oftentimes a source of friction between a franchisor and franchisee. One reason for that friction is that the franchisee did not quite understand the terms of what he or she is agreeing to. If you are thinking about entering into a franchise agreement, you must make absolutely certain you are clear on all aspects of the agreement. If you are not, you could be in for an unpleasant surprise at some point in the near future.
One way to have confidence in your agreement is to work with a lawyer whom your trust and respect. When choosing a lawyer, it is generally a good idea to seek out an attorney who experience working with the same kind of issue you are facing.
Source: The Orlando Sentinel, "Circle K snaps up 29 Orlando BP gas stations," Sandra Pedicini, Aug. 14, 2012
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