About ARCO/Marathon/Tesoro Franchise
Marathon Petroleum Company LP (MPC) is a petroleum franchise that offers branded fuel distribution under the ARCO, Marathon, and Tesoro service marks.
Franchisees (called Jobbers or Buyers) enter into a Branded Product Supply and Trademark License Agreement to purchase ARCO or Marathon branded gasoline and diesel fuel from MPC and distribute that fuel to branded retail outlets they own or resell to retail outlets operated by third parties for resale to the public.
Target customers include retail fuel consumers and independent gas station operators who purchase wholesale branded fuel.
ARCO/Marathon/Tesoro Franchise Cost & Fees
Minimum Investment
$275
Average Investment
$755
Maximum Investment
$1K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $0 | One-time payment upon signing |
| Royalty Fee | Branded jobber terminal price per gallon (variable) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $0.00150 per gallon of motor fuel purchased (Marathon Outlets only) | National brand fund |
| Total Investment Range | $275 – $1,235 | Includes build-out, inventory, working capital |
The investment range of $275–$1K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Branded jobber terminal price per gallon (variable)) and marketing fee ($0.00150 per gallon of motor fuel purchased (Marathon Outlets only)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $0 |
| Network Installation Fee (ARCO only) | $275 | $1,235 |
| Network Connectivity (monthly) | $85 | $120 |
| POS Software Maintenance (monthly) | $65 | $96 |
| Managed Firewall Solution (monthly, optional) | $0 | $60 |
| Mystery Shop Program (annual, up to 4 shops) | $55 | $220 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Technology Fee | $85 to $120 per month for network connectivity (both ARCO and Marathon); Optional managed firewall solution at $59.50/month |
| POS Software Maintenance (ARCO) | $70 to $95.83 per month plus tax |
| POS Software Maintenance (Marathon) | $65 to $95.83 per month plus tax |
| Mystery Shop Fee | $55 per mystery shop (up to 4 per year per outlet) |
| Transaction Card Processing | Variable - percentage or flat fee or combination depending on card type |
| Late Payment Charge | Up to maximum amount permitted by law |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Not disclosed |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Buyer is a nonexclusive distributor. Buyer will not receive an exclusive area or territory. MPC and Affiliate specifically reserve the unqualified right to sell and distribute Products and other branded products and to directly compete with Buyer and Branded Outlets and to establish, either directly or through other jobbers, wholesalers and distributors, gasoline outlets and facilities. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Specified in individual agreement (not disclosed in disclosure document) |
| Renewal Term | No renewal provision; agreement can only be extended by written agreement of the parties |
| Renewal Conditions | The Branded Supply Agreement does not provide for a renewal upon expiration of its initial term. The agreement can only be extended by written agreement of the parties. |
| Transfer Conditions | Agreement is personal to Buyer and cannot be assigned without prior written consent of Seller. Any sale, transfer or change of 25% or more of voting stock or partnership interest constitutes an assignment requiring Seller consent. |
| Termination for Cause | MPC may terminate upon written notice for any failure to comply with terms of the Agreement, or for any reason allowed by the Petroleum Marketing Practices Act (PMPA). Grounds include: failure to comply with any agreement between MPC and Buyer, unauthorized transfer, failure to purchase minimum gallons, failure to make timely payments, violation of image standards, abandonment of outlet for 7+ consecutive days, or failure to maintain appearance and customer service standards. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The agreement identifies a key person whose active continuing involvement in the business affairs of Buyer is deemed essential. MPC may terminate or non-renew the agreement upon 90 days notice if the key person dies, becomes incapacitated, leaves the employ of Buyer, or divests ownership interest. |
| Required Suppliers | MPC or designated jobber for branded motor fuels (Products); MPC-approved third party for trade dress items; Approved managed network service provider for firewall solution (if not using MPC's solution) |
| Supply Restrictions | Must purchase minimum volume of branded Products from MPC; Must use MPC's transaction card processing and billing services; Must purchase trade dress from MPC-approved third party; May be required to purchase equipment, goods or services from MPC for mandatory marketing programs |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | MPC offers financing through the ARCO/Marathon Brand Development Program to help Jobbers complete enhancements and improvements to branded outlets. Includes: (1) Monthly Jobber Assistance Loan of $0.0125-$0.0225 per gallon gasoline and $0.0040-$0.0125 per gallon diesel during 7-year, 10-year, or 15-year brand commitments, amortized and forgiven over the last 3, 5, or 8 years respectively; (2) Jobber Assistance Loans up to $205,000 payable in lump sum after outlet conversion completion, also amortized and forgiven over the commitment period. Upon default including debranding, all unamortized amounts must be immediately repaid. MPC does not guarantee promissory notes, mortgages, leases or other obligations. |
ARCO/Marathon/Tesoro Franchise Earnings — Item 19
ARCO/Marathon/Tesoro does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
ARCO/Marathon/Tesoro does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
ARCO/Marathon/Tesoro Litigation & Risk Flags
Clean Litigation RecordARCO/Marathon/Tesoro has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
ARCO/Marathon/Tesoro System Growth
Total Units
0
Franchised
0
Company-Owned
0
ARCO/Marathon/Tesoro currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
State Registrations
Registered in 1 states: ND
ARCO/Marathon/Tesoro Franchise — FAQ
The total investment to open a ARCO/Marathon/Tesoro franchise ranges from $275 to $1,235, per their Franchise Disclosure Document. This includes the initial franchise fee of $0. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
ARCO/Marathon/Tesoro charges a royalty fee of Branded jobber terminal price per gallon (variable) of gross sales, plus a $0.00150 per gallon of motor fuel purchased (Marathon Outlets only) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the ARCO/Marathon/Tesoro Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from ARCO/Marathon/Tesoro to ensure you have the most up-to-date version.
ARCO/Marathon/Tesoro does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
ARCO/Marathon/Tesoro has been franchising since 1998. The FDD shows an investment range of $275-$1,235, a Branded jobber terminal price per gallon (variable) royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $0 and the total investment ranges from $275 to $1,235 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from ARCO/Marathon/Tesoro and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with ARCO/Marathon/Tesoro or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com