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Learn about how to open up a Shell service station franchise or dealership.
Total automotive fuel sold through Shell service stations account for a major share of the retail fuels market. Over 900 Shell service stations are found throughout the country, with about half of them company-owned and the other half, dealer-owned. Shell dealers are valued members of the Shell family.
Quality products, customer focus, strategic locations, facilities and services have continued to draw motorists around the country to Shell.
Many of the stations operate 24-hours a day, offering Shell's full range of world-class quality fuels and lubricants, as well as vehicle lubrication and car washing services.
Shell V-Power, Shell Premium Unleaded, Shell Super Unleaded and Shell Diesoline are the core products channelled through the retail outlets.
A convenient, clean and safe retail environment thus awaits each customer in every Shell retail station. SELECT convenience stores and Shell Shops in Shell retail sites complete Shell's offering to customers.
What 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
Who can apply for a Shell dealership
Dealers are business-minded individuals who have become partners of Shell in the retail fuel business. To apply, interested parties must first secure a "pre-screening checklist." The checklist outlines the qualifying criteria for a Shell dealership.
What 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.
What are the qualifications of a Shell retailer?
- Can motivate his people towards agreed business targets.
- Willing to devote time to oversee the day to day operations of the business
- Willing to undergo full time training on service station operations
- Able to fund the investment requirements
Can a corporation 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.
Who will provide the manpower to operate the service station business?
Retailer will provide the manpower. However, Shell will assist the franchisee in recruiting the members of his management team. This team will be employed by the franchisee who shall then be responsible for their salaries and benefits while on training.
How long would it take for an applicant to be pre-screened?
Two to three months.
Do I need a site/lot to apply for a franchise?
There are two types. For Company-owned sites: No, Shell will provide the site. For Dealer-owned sites, yes.
Will Shell provide training for retailers/dealers?
Yes, all training for the retailer and its staff will be provided by Shell at cost for the account of the retailer.
Is there a franchise fee?
There is no franchise fee to be collected. There are, however, application processing fees to be collected.
What other fees will I be paying Shell?
Retailer will pay Shell his monthly Royalty and Retailer Fees. The fees are all based on a mutually agreed Business Plan for the service station.
What is a Business Plan?
It contains financial (e.g. profit and loss) and non-financial (marketing activities) plans of the service station business.
What will the initial investment of Php3.0 Mn. to Php5.0 Mn. cover?
This will basically cover: fuels inventory (2-3 day stock cover), lubricants inventory(1 month stock cover), merchandise in the Shell Shop/Select, lube/wash bay equipment (change oil equipment, car washer, tools, vacuum cleaner and others), initial operating expense (salaries, utilities, uniforms, business permit and others), power generator. This may vary from site to site.
Do I need to purchase a lorry/tank truck to operate a service station?
No, there is an accredited hauler to deliver fuels and lubricants to our retailers.
Where will I get my supply for my Select and/or Shell Shop?
There are accredited Shell Suppliers who will supply goods and services to our Retailers.
Once awarded with a license to operate a Shell service station, will I operate all businesses present in the station (e.g. Forecourt, Select, Lube and Wash bay)?
The license to operate for each Business is awarded separately to the Retailer.
How long is the contract of a Retailer?
Retailer will have to sign Shell's "Retailer Agreement" and this will be good for three (3) years. Renewal of the agreement will be based on Retailer's performance.
Who will maintain the Shell-owned equipment (pumps, tanks, lifters, signages, and compressors)?
It will be for the account/ responsibility of the Retailer through Shell's accredited contractors.