Valero will pay the full cost for converting qualified locations to its premier brand. This brand conversion requires a 10-year agreement with Red Rock Distributing Company, Inc. Brand conversion may also qualify for an additional cents-per-gallon incentive, (listed below). In order to qualify for Valero brand conversion, a location must meet the following minimum requirements as well as certain economic criteria.
- Canopy:
- • Modern well-lit structure
- – No fluorescent lighting
- – Canopy pan required
- • Must be free standing
- – Smooth, flat, horizontal fascia (30” minimum)
- Exterior Surface:
- • Concrete pad under canopy
- • Asphalt or concrete in all parking areas, drives, ingress/egress, etc.
- Gasoline Dispensers:
- • Minimum of 2 MPDs with CRINDS
- • Must be modern, fully operational & in good condition
- Diesel Dispensers:
- • Stand alone branded diesel dispenser, (single product dispenser),
under gasoline canopy is acceptable
- Convenience Store:
- • Exterior
- – Modern c-store with an exterior appearance that compliments the overall branded image
- – Good outside lighting
- – NO METAL BUILDING
- • Interior
- – Interior that is clean, modern, visually appealing and well stocked that compliments the overall
branded image
- – Good inside lighting
- – Clean / modern public restroom
- Volume Requirements:
- • Target of 50,000 gallons per month or greater
In addition to Valero covering conversion costs, units may also qualify for additional cents-per-gallon incentives based upon fuel volume and the terminal market in which they are located.
• Two programs are available: the Reload Incentive Program and the Traditional Incentive Program
• Incentives will be paid out on a quarterly basis
• Existing branded locations may be eligible to convert to the Reload Incentive Program
• Incentive ranges for both programs are listed below
| Gasoline Volume |
|
Inventive Rebate |
|
Inventive Payout |
|
Branding |
|
Option |
|
*Option Year |
| per Month |
|
(Range) |
|
(Term) |
|
Term |
|
Year |
|
Incentive |
|
|
|
|
|
|
|
|
|
|
|
| 50,000 - 75,000 |
|
0.0 - 2.0 |
|
3 years |
|
10 years |
|
7 |
|
0.0 - 2.0 |
| 75,000 - 100,000 |
|
0.5 - 2.0 |
|
3 years |
|
10 years |
|
7 |
|
0.5 - 2.0 |
| 100,000 - 150,000 |
|
1.0 - 2.5 |
|
3 years |
|
10 years |
|
7 |
|
1.0 - 2.5 |
| 150,000 - 200,000 |
|
1.0 - 3.0 |
|
3 years |
|
10 years |
|
7 |
|
1.0 - 3.0 |
| 200,000+ |
|
1.0 - 3.0 |
|
4 years |
|
10 years |
|
7 |
|
1.0 - 3.0 |
* Option year incentives (reloads) do not apply to the Traditional Incentive Program
Unique in the industry, Valero’s Reload Program gives you the option at the end of 7 years, to “reload” the same incentive you received the first 3 years, for the remaining 3 years of you contract. This program is designed to meet the needs of store owners who need to have continued incentive payments to meet the challenge of ever-increasing competition. This incentive structure requires a 10-year contract extension to be signed with Red Rock Distributing Company, Inc., making the total length of this program 17 years.
Valero’s Traditional Incentive Program, which also requires a 10 year contract with Red Rock Distributing Company Inc., is paid out over a 3 or 4 year period depending on the site’s fuel volume. The range of incentives paid based on fuel volumes is the same for both the Traditional and Reload Programs. The reload option is not available with the Traditional plan.
|
|
Valero Branding Requirements
Valero Incentive Programs