Southwest Gas Franchise Agreement Chandler: What Businesses Need to Know

Southwest Gas is a natural gas company that serves customers in Arizona, California, and Nevada. The company operates as a regulated public utility, and it provides natural gas service to residential, commercial, and industrial customers. If you`re a business owner in Chandler, Arizona, you may be interested in learning more about Southwest Gas`s franchise agreement in your area.

What is a Franchise Agreement?

A franchise agreement is a legal contract between a company (the franchisor) and another party (the franchisee) that allows the franchisee to use the franchisor`s system and trademarks to operate a business. Franchise agreements can cover a variety of topics, such as fees, royalties, training, and advertising. In the case of Southwest Gas, the franchise agreement covers the company`s rights to operate within the city limits of Chandler.

What is Southwest Gas`s Franchise Agreement in Chandler?

Southwest Gas`s franchise agreement in Chandler was initially approved by the Chandler City Council in 1987. The agreement grants the company the right to construct, operate, and maintain natural gas facilities within the city limits. In return, Southwest Gas pays the city a franchise fee of 2% of its gross annual revenues generated within Chandler.

The franchise agreement also includes provisions for public safety, customer service, and environmental protection. For example, Southwest Gas is required to comply with all applicable state and federal regulations related to natural gas safety and environmental protection. The company is also required to provide prompt and courteous service to its customers.

What Does the Franchise Agreement Mean for Businesses in Chandler?

If you`re a business owner in Chandler, you may be wondering how Southwest Gas`s franchise agreement affects you. Here are a few key points to keep in mind:

- If you`re planning to use natural gas in your business, you`ll need to contact Southwest Gas to set up service. The company is the exclusive provider of natural gas service in Chandler, so you won`t be able to choose another provider.

- You`ll need to pay a monthly gas bill to Southwest Gas, just like you would with any other utility provider. The cost of natural gas can vary depending on market conditions and usage, so it`s important to track your usage and manage your costs.

- If you have questions or concerns about your natural gas service, you can contact Southwest Gas`s customer service department. The company is required to provide prompt and courteous service to its customers, so don`t hesitate to reach out if you need assistance.

In conclusion, Southwest Gas`s franchise agreement in Chandler is an important piece of the city`s natural gas infrastructure. As a business owner, it`s important to understand the terms of the agreement and how they affect your business. By working with Southwest Gas and staying informed about your natural gas usage and costs, you can ensure that your business has reliable and cost-effective natural gas service.