How to Franchise: Shell Gas Station in the Philippines
Fuel is undeniably one of the essential commodities of our times. With the increase in vehicle production and consequently increase in oil demand, it’s a great opportunity to grab the chance to be part of the oil business in the country.
One of the trusted names to consider in the Philippine oil industry is Shell. Know more if franchising this gas station is the suitable business path for you.
About Pilipinas Shell
Shell Philippines started in 1914 as a distributor of kerosene in the country. Over time, the company has grown and expanded its product lines to include wide range of fuels, lubricants, bitumen and other specialty oil-based products.
In the 1960s, Shell built its first crude refinery in Batangas making the company an established manufacturer and refiner of petroleum products in the Philippines. It was 1986 when Pilipinas Shell acquired the majority of the Philippine Petroleum Company, the country’s only lube refinery then.
At present, Shell Philippines is involved in oil and gas exploration, production, oil refinery, distribution, and sales to retail and institutional consumers.
Franchise Dealership Packages
Pilipinas Shell’s franchises, also called dealerships, may either be: (1) company-owned or (2) dealer-owned. Whether you’ll choose a company-owned or dealer-owned franchise, the Shell dealership includes the following benefits:
- Use of Shell brand and other trademarks
- Location and market study
- Layout and fitting out of service station
- Building and equipment
- Operating standards
- Training for retailer and staff
- Procurement programs
- Pre-opening assistance
- Grand opening assistance
- Marketing strategies
- Research and development
- Business counseling
Pilipinas Shell Franchise Fee
How much is the Shell franchise fee to operate a gas station?
Now this is where it gets interesting. What’s unique with the Shell dealership is that it actually doesn’t charge a franchise fee. You heard it right, there is no franchise fee.
But of course, there are still fees that you need to pay in order to be allowed to acquire and operate a Shell dealership. These fees include:
- Processing fee
- Royalty fee
- Retailer fee
All in all, be prepared to shell out an initial investment cost of P3 Million to P5 Million for every Shell gas station that you will own.
This initial investment will cover:
- fuels inventory (2-3 day stock cover)
- lubricants inventory (1 month stock cover)
- merchandise in the Shell Shop/Select
- lube/wash-bay equipment
- initial operating expense (salaries, utilities, uniforms, business permit, and others)
- power generator
Take note that the Shell Select convenience store and Shell auto-repair automotive shop will have to be applied separately from the gas station franchise.
Dealership Eligibility and Requirements
Here are additional dealership details that you need to know if you’re interested to franchise Shell gas station.
First, the Shell dealership in the Philippines is awarded initially only to a person or an individual. Once the franchise application is approved, the individual may then organize a “closed corporation” provided that he or she proves to be the majority owner of the corporation.
Second, make sure you pass the “pre-screening checklist” required by Pilipinas Shell when evaluating dealership applicants. These application criteria include:
- Ability to motivate his or her people towards agreed business targets
- Willingness to devote time to oversee day-to-day operations of the business
- Willingness to undergo full time training on service station operations
- Ability to fund investment requirements
Earnings and Return on Investment (ROI)
If approved, the dealer franchisee will sign a 3-year Retailer Agreement with Pilipinas Shell. Renewal of said dealership contract will be dependent on the business performance of the gas station.
According to Shell, the average payback period for a gas station is around 2-3 years, with the Return On Investment (ROI) expected to be 30%-40%.
Shell Franchising Contact Details
Interested to be a franchisee / dealer / retailer of a Shell gas station? Contact them directly using the details below:
+63 2 878 8888 (Metro Manila Line)
1800-10000-1111 (PLDT Toll Free Line)
1800-5888-1111 (Bayantel Toll Free Line)
1800-8111-1111(Globelines Toll Free Line)
If you’re looking for other franchise opportunities, check out PinoyMoneyTalk’s Complete list of Philippine companies available for Franchising
Information and Image Sources: Official Company Website (shell.com.ph)
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