What is Flex Fuel? Is it legit or scam? How much is the initial investment for FlexFuel?
Those are, without a doubt, some of the questions you’re looking for answers to because you’ve come to this article. If you’ve seen FlexFuel’s social media ads, you’re aware that it offers a co-ownership program as a business opportunity.
Flex Fuel lets you own a business for life while providing a passive income. Passive means you’ll receive your profits without anything.
I know what you’re thinking. Easy money, right?
Not so fast.
Let’s see if FlexFluel is a good and legitimate investment opportunity in this article. Read this review first before handing over your money to them.
Table of Contents
What is FlexFluel
Flex Fuel Petroleum Corporation is a Filipino independent fuel company that provides motorists and travelers with low-cost gasoline, a clean and safe environment, and membership card benefits. It has been in operation since 2019 and is currently serving 24 gas stations in Luzon area.
Currently, there are 6 Flex Fuels registered with SEC of the Philippines. However, their registrations do not authorized them to offer investments to the public.
Celebrity Luis Manzano is the chairman of the Flex Fuel Petroleum Corporation while Ildefonso C. Medel Jr serves as the President.
The company’s office address is at Unit 901, One Global Place, 5th Avenue corner 25th Street, Bonifacio Global City 1634 Taguig, Philippines. Here’s a video from their official Facebook page.
Flex Fuel’s Co-Ownership Program
The Flex Fuel Co-Ownership Program was created with the goal of offering you the opportunity to operate a gas station. Gas stations are registered with the SEC separately. A gas station is classified according to its size.
A 300 square meter minimum small gas station has one island, one pump, and six hoses. A medium station has two islands, two pumps, and twelve hoses. A large gas station has 3 islands, 3 pumps, and 18 hoses built in an area of at least 1200 square meter.
All gas stations sell diesel, unleaded and premium gasoline.
FlexFuel claims each gas station has only 15 seats. Flex Fuel Petroleum Corporation, a 35 percent industrial partner, gets one seat. The other 14 seats are shared by the co-owners (65%). A maximum of 3 seats is allowed per person.
How much is the investment to own 1 seat?
Flex Fuel gas stations offer the opportunity to be part-owner for a minimum of Php900,000. Return on Investments is expected after the 5th year.
The co-ownership program entitles you to share profits of the gas station every quarter deposited directly to your bank account.
To summarize, the FlexFuel Co-Ownership Program is an investment package offered to investors in exchange for the promise of passive income. When you invest in a gas station, you become a co-owner.
SEC Advisory Against Gasoline Stations
In an advisory issued on August 24th, 2021, the SEC has received reports of an increase in the number of franchise agreements, co-franchisee agreements, partnership agreements, co-ownership contracts, and other contracts that offer the public an opportunity to invest in small gasoline companies.
These small gas stations usually entice investors by advertising that they can co-own a gas station at a specific minimum investment. According to the SEC, small gas companies offer the following:
- Subscription to the shares of stock of the company;
- Partnership Agreement, where a gas station will be co-owned by several partners; and
- Co-Franchisee Contract wherein a single gas station will be franchised and owned by several co-franchisees.
In the above offers, the company will be responsible for the construction, management, and operation of the gas stations. Investors simply deposit funds, sign the contract, and await quarterly profit distribution. Some even guarantee a profit by claiming the company will bear the loss.
The SEC reminds the public that the offer of these gasoline companies are considered investment contracts and/or a subscription of shares of stock.
These offerings are regulated as securities by the Commission. Republic Act No. 8799 or the Securities Regulation Code requires public solicitation of securities to be registered with the Commission. Unregistered securities are thus illegal.
The SEC advisory clearly covers Flex Fuel’s solicitation of investments from the public. However, in a link of exclusive list of registered issuers of securities with corresponding Permit to Offer and Sell Securities, Flex Fuel Petroleum Corporation is nowhere to found.
Is Flex Fuel Co-Ownership Program Legit or Scam?
Flex Fluel’s Co-ownership program is an investment scam. The company is offering an investment contracts and/or a subscription of shares of stock which requires registration and Secondary License from the SEC. However, FlexFuel has no license or permits from the SEC to offer such investments to the public.
Flex Fuel Petroleum Corporation is not listed on an exclusive list of registered issuers of securities with a Permit to Offer and Sell Securities. Investments not included in the list are deemed to be unregistered and therefore not authorized to be offered to the public.
On the other hand, the Capital Market Participants Registry System (CMPRS) thru the link http://cmprs.sec.gov.ph/ lists down the capital market institutions and individuals authorized to solicit investments such as broker dealers in securities and salesmen. Again, FlexFuel is not listed on that site.
Penalty if You Promote FlexFuel’s Co-Ownership Program
The law wants to protect the public against unauthorized investments. Hence, you could be criminally liable if you promote investment scams like Flex Fuel’s co-ownership program.
The SEC warns that those who act as salesmen, brokers, dealers, or agents of these gasoline companies in selling or convincing people to invest in their scheme, including solicitation and recruitment, may be prosecuted and fined up to five million pesos under Section 28 of the Securities Regulation Code (SRC).
Avoid Flex Fuel’s Co-Ownership Program because it is an investment scam. The company behind this investment program has not secured its Secondary License from the Securities and Exchange Commission of the Philippines. Hence, it is soliciting investments from the public illegally.
Should you have any information regarding any investment solicitation by any individuals or group of individuals on behalf FlexFuel of Flex Fuel Petroleum Corporation, please send your report to the Enforcement and Investor Protection Department (EIPD) at email@example.com.