Research assignment: basic info on Natgo

  • Natgo, Inc. is a new franchise company that is planning to build a factory in Turtle Bay...

  • it has big plans for a chain of natural-gas stations, nationwide...

  • it will also manufacture pumps for Amoco, Exxon, and other gas stations, who are still in discussions with Natgo, but are expected to agree to sell Natgo under their own brand name, using separate pumps (like they now sell diesel fuel)...

  • Natgo partners Jon Wollmann and Allen B. Wiess have lined up financing from major investors (one big investor is Bill Gates), who agree that U.S. consumers may at last be ready for a network of alternative gas stations...

  • Natgo is looking for entrepreneuers who are ready to invest in this new network -- that is, people who would like to open their own natural-gas station as part of the new Natgo chain...

  • To new franchisees (people who have the money and the business skills to open and manage their own Natgo station) they will provide a number of incentives...

  • they'll supply outdoor signs and other advertising/display graphics, available at below cost...

  • they'll install the pumping equipment, also available at cost...

  • they'll be running a nationwide advertising campaign on TV and radio and in magazines, which will of course benefit local franchisees...

  • they'll also supply free ad art for local advertising that franchisees will want to do on their own...

  • they'll provide employee training...

  • they'll provide financing for low-interest loans to get entrepreneurs started.

  • Natgo will also manufacture conversion kits for franchisees to distribute to motorists, which will enable people to convert their present cars to run on natural gas -- as well as gasoline... this means that you can adapt your car to use natural gas... it will cost about $150, and it could save you about $50 every 1,000 miles...

  • Wollmann and Wiess will be advertising franchise opportunities in magazines like "Inc." and "Entrepreneur." They would also like to get free publicity... that's why they've hired your firm...

  • The factory will be built on a parcel of land formerly owned by the county at Two Day Road and I-69, just within the city limits.

  • The factory will employ 400 workers. It will contain several production lines, building the auto conversion kits, the pumps and other fixtures for Natgo stations, including outdoor signs and the other display materials.

  • If all goes as planned, construction of the simple structure will begin in November of 2001 and production will begin as early as March 2002...

  • That means new franchisees can begin lining up their sites and making their business plans now, with delivery of the essentials to come as early as late March of next year.

  • Natgo's temporary "world headquarters" are located at 100 Belevue Road, in Turtle Bay. They have a toll-free phone number for inquiries -- 800-432-1111...