A commission-agent agreement allows to own and operate the business
Cal’s Convenience Inc., through a commission-agent agreement with Sunoco, has acquired the 207 Stripes convenience stores, that were not part of the $3.1 billion deal between Sunoco LP and 7-Eleven Inc., which will allow it to “to own and operate the business” of the stores, effective April 1.
A Sunoco spokesperson said, “Cal’s Convenience Inc. has entered into a master lease and a master commission agent to own and operate the convenience-store business at those stores. Stripes LLC has granted CAL’s a sublicense to use the Stripes and Laredo Taco Company brands pursuant to Stripes’ license agreements with 7-Eleven Inc."
Jack Whitney, president and CEO of Cal’s Convenience, is the former vice president of retail operations for Sunoco and Stripes.
Sunoco had earlier declared that it had concluded the conversion of the 207 fuel service stations to a single commission agent. Sunoco's transition out of the majority of its convenience-store operations in the United States is ‘effectively complete’, with this conversion done.
Sunoco owns, prices and sells fuel at the sites, paying the agent a fixed cents-per-gallon commission, under the commission-agent model. The company continues to own about two-thirds of this portfolio in fee. It will receive rental income from the commission agent, who will conduct all operations related to the convenience store and any related restaurant locations. Source: CSP PWKD11042018
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