Business Intelligence on Retailing, Franchising, and Consumerism in China

Poorly Performing Franchisees Lose Their Sinopec Credentials

Sinopec has revoked the franchising qualifications of Beijing Municipal Xingfu Petroleum Company, which has been criticized for breaking local laws and regulations.

Local media report that Sinopec's Beijing branch will modify the operation of its franchised gas stations according to the regulations of the Beijing Municipal Bureau of Industry and Commerce. It will disqualify those gas stations if they break the franchising contract or provide bad quality products.

The Xingfu Gas Station in Daxing District Beijing reportedly sold unqualified gas which has caused a lot of trouble for drivers. After Sinopec learned about this, it ended the contract with Xingfu Gas Station.

Sinopec is one of the largest integrated energy and petrochemical companies in Asia and is headquartered in Beijing. The company says it will continue to keep its eye on other franchisees to ensure that customers are provided with a good product.

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