COMPANY OWNED – DEALER OPERATED (CODO) Scheme

A CODO scheme is when Fraga appoints you as the Dealer of a Fraga service station.

What are the requirements?

You need to initially write a letter to Fraga Oil signifying your intention to operate or become a Fraga service station dealer and state your preferred area of operation. The letter should be addressed to:

    The Executive Chairman
    Fraga Oil (Ghana) Ltd
    Former U.S. Embassy Building
    Near Danquah Circle

You must show evidence of financial capability by either;

  • Paying by way of a bankers draft into the company’s designated account the amount needed to buy the product accompanied with a six month bank statement with a minimum balance of GH¢250,000.00.
  • Alternatively, a Bank Guarantee from a licensed Bank by BoG valued at not less than GH¢250,000.00 in favour of Fraga Oil Ghana Limited can be accepted.
  • Insurance Guarantee from an accredited insurance company licensed by NIC with a sum insured of at least GH¢250,000.00
  • Alternatively, a special arrangement could be made with Fraga Oil Ghana Limited, using a property in a prime location as a collateral against the lifting of the petroleum products.

How much do I need to invest?

You need to invest a minimum of GH¢250,000.00 for your working capital.The amount may vary depending on the projected volume of the service station.

What’s in for me as a dealer?

Fraga Oil will give the dealer a commission on every litre of product lifted. The minimum commission rate is 8% on the product lifted. For instance, if a dealer lifts a total of 200,000 litres of products in a month, the commission for that month will be a minimum of GH¢16,000.00

Scenario
Litres Sold
Commission Rate
Commission Earned (GHS)
 100,000.00   8% 8,000.00 
 150,000.00   8% 12,000.00 
 200,000.00   8% 16,000.00 
 250,000.00   8% 20,000.00
 300,000.00   8% 24,000.00 

What are the other requirements?

You are required to take a Dealer Training Course for three (3) weeks to familiarize yourself with service station management and operations. Your Forecourt Service Crew (pump attendants), Station Manager and Cashiers are required also to undergo classroom and hands-on training.

Please click here to download a copy of the full details of this deal!