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How to start a franchise of Shell Gasoline Station?
Kindly indicate steps to franchise Shell Gasoline station including payments to be maid.4 years ago - 3 answers
at where (what country) ?
Franchise a Shell Service station dealership.
> in U.S. :
Minimum Capital needed is around USD $ 125,000.00
> in Philippines :
the Minimum Capital for initial investment
is around Php 3 - 5 million Pesos
> This will basically cover :
1. fuels inventory (2-3 day stock cover),
2. lubricants inventory(1 month stock cover),
3. merchandise in the Shell Shop/Select,
4. lube/wash-bay equipment
(change oil equipment, car washer, tools, vacuum cleaner and others),
5. initial operating expense
(salaries, utilities, uniforms, business permit and others),
6. power generator. This may vary from site to site.
A. Shell offers dealers/retailers
1. Shell Brand & other Trade Marks
- Retailer will have his own name as a corporation or individual business owner. However, he would operate Shell's service station business under the Trade Name of Shell. A Shell Retailer is given the right to use Shell's logos, signage, slogans and Trade Marks which are world renowned symbols of high quality in fuel products and related services.
2. Location and Market Study
- Shell's network planners identify strategic and suitable locations for Shell service stations, using proven criteria for successful business locations. Shell provides specific market study for each outlet that includes projected sales, operating expense, capitalisation, manning complement and others. The Retailer can be assured of the viability of each and every site.
3. Layout and Fitting out of Service Station
4. Building and Equipment
5. Operating Standards
6. Training for Retailer and Staff
7. Procurement Programs
8. Pre-Opening Assistance
9. Grand Opening Assistance
10. Marketing Strategies
11. Research and Development
12. Business Counselling
B. apply for a franchise
- Shell awards franchises to individuals only.
Upon approval of the franchise, the individual may organize a "closed corporation" to manage the business, provided he is able to show clear majority ownership in this corporation.
C. basic Qualification :
1. Can motivate his people towards agreed business targets.
2. Willing to devote time to oversee the day to day operations of the business
3. Willing to undergo full time training on service station operations
4. Able to Fund the Investment Requirements
(in U.S.: around USD$ 125,000 ; in Philippines : around Php 5 million)
D. Franchise fee
1. There is no franchise fee to be collected. There are, however, application processing fees to be collected.
2. BUT will pay Shell a monthly Royalty and Retailer Fees. The fees are all based on a mutually agreed Business Plan for the service station
E. Business Plan
- It contains financial (e.g. profit and loss) and non-financial (marketing activities) plans of the service station business.
F. retailers/dealers Agreement
1. Retailer/Dealers will have to sign Shell's "Retailer Agreement"
2. and this will be good for three (3) years.
3. Renewal of the agreement will be based on Performance
Shell dealers/retailers can expect from the service station business
- Average rate of Return On Investment (ROI) ranges from 30% to 40%.
- Average Pay back period is about 2-3 years.
H. applicants for Philippines
(1) Dealers are business-minded individuals who have become partners of Shell in the retail fuel business.
(2) who are willing to invest in the construction of service stations in identified areas in the Philippines and operate this site according in accordance with Shell standards; or
(3) operate an established service station or a network of service stations in the country.
(4) have enough Management Skills
(5) can provide all the necessary working capital
to run the service station business smoothly
( in Philippines the Minimum Capital for initial investment
is around Php 3 - 5 million Pesos )
(6) Knowledge of the Trading Area
(7) need a site/lot to apply for a franchise
There are two types.
For Company-owned sites: No need, Shell will provide the site.
BUT For Dealer-owned sites,
yes. it need a site/lot to apply for a franchise
To apply, interested parties must first secure a "pre-screening checklist."
The checklist outlines the qualifying criteria for a Shell dealership.
for more further details or inquiries :
A. for Global.....
1. contact Shell headquarters
Carel van Bylandtlaan 16, 2596 HR The Hague, The Netherlands
2. mail Postal address:
PO box 162, 2501 AN The Hague, The Netherlands
3. Tel. +31 70 377 9111
B. for Philippines
1. may visit Shell House
156 Valero Street, Salcedo Village, Makati City 1227, PHILIPPINES
2. email SCIPemail@example.com
3. contact Me...
Source(s):4 years ago