Contract Manager

Providing insights into the forecourt world

Contract Manager Insights

MFG (Motor Fuel Group), Rontec, MRH (Malthurst) Retail are major independent petrol forecourt operators. They all manage their petrol retail sites in similar ways. Some call their site managers “Contract Managers” and others call their site managers “Commision Operators”

They offer management of their sites to self employed business persons with the attraction of running “your own business”. You are expected to sign contracts that tie you to their regime.

Far from a relationship built on fairness, a partnership, or the principle of working together to make profit for both parties to the contract:

everything is set up so the company can make money out of YOU.

Awareness

Make prospective Contract Managers/Commission Operators aware of what they are committing themselves to.

Share Experiences

Provide a forum for existing Contract Mangers/Commission Operators to share their experiences and inform prospective ones of the risks of joining these organizations.

Promote Fairness

To compel these forecourt companies to offer fairer contracts and management methods that meet the moral and ethical standards of the 21st century

Our Aims

Many Contact Managers or Commission Operators become disillusioned once they take up their positions. For more detailed information regarding our aims, what were all about and how we can help…

Learn More Here

Is It a Franchise

In a word NO! There are few similarities between the structure of fuel forecourt management by Contract Manager/Commission Operator and that of a genuine Franchise. MRH Retail/Malthurst do not refer to their operating structure as a Franchise. However MFG and Rontec and a few others do. They are wrong to do so. It is misleading. Franchises are far more secure. The most fundamental feature is they have a defined period of contract; normally a minimum five year contract rising to longer contracts which can be up to 25 years and more. In most cases they have renewal options and conditions which can add to the security. In almost all cases a franchise is an asset which you buy and you have rights to sell it at a market rate although there maybe conditions attached. Your deal with the fuel forecourt company will have a notice period similar to an employment contract of something like 3 months. If the fuel company decides to change its management policy to direct managed sites, officially employing their site managers then they simply give you all 3 months notice and you’re gone. A franchisor cannot do this. They would have to buy you out. A few years ago TOTAL and ESSO did this leaving a lot of business persons high and dry. We say “officially employing their site managers”. Well in our opinion and that of many of MFG’s managers, is that the arrangement between Murco as it was (now MFG) and its contract managers is “direct management by any other name” (a quote from Andy Edwards an Area manager at the time). As... read more

MFG Milk “Scam”

MFG operate what can only be called a “milk scam”. As we have said all the Companies negotiate the prices for almost all the products supplied to their sites. Milk supplies are no exception. MFG have negotiated milk prices with West Country Milk Consortium. The Contract Managers are invoiced 30 – 40% more than the prices MFG have negotiated. At one time I calculated Contract Managers were paying 50% more than the general market price for 2litres milk. It doesn’t take a genius to guess where the difference goes. This policy is apparently legal but is it ethical or morally correct? It surely isn’t beneficial for what they call your business. How can this help your footfall? How can this be good for your business? Answer it can’t be! One of the most basic, fundamental products if not THE MOST basic fundamental product and you have to charge your customers way above the market price. We could understand a 10% differential but 34-40%. NO WAY! Within MURCO as it was, this was known as Tony Walker’s baby. We can think of a better phrase – more like “con” What are you paying today? If you don’t believe me look at this invoice from West Country Milk for a small purchaser in January 2015. How much more are you current Contract Managers paying? What are you paying today? Example:- You will notice that these prices are for very small quantities and that because of this even better prices are available from West Country Milk. Ask Gary Pearce, who has worked for all the suppliers in this chain: Costcutter, Murco/MFG and... read more