In Canada, you can be in charge of a profitable business when you acquire and own a gas station. Even though a lot of factors must be considered before you decide to start one or purchase an existing company, but if this business is well-run, it can generate healthy profits that will benefit your bottom line.
But first and foremost, it is very imperative to find a location where traffic is high so that there is a significant volume of fuel purchased every month. You also need enough room for a convenience store in a bid to supplement your income.
One thing you have to understand is that this business opportunity is labour-intensive. Your ability to operate at a profit will depend largely on some factors that are often outside your control. This is why it is necessary to review all the pros and cons of owning a gas station before deciding that this opportunity is right for you.
Canada is renowned as a society where transportation is an essential need. Even when there is a recession and drivers are conserving gas by travelling less or using public transportation, there is still demand for fuel. People are going to need a way to add fuel to their vehicles in some manner in the future.
Owning a gas station also means that you have access to an opportunity to sell more items to your community. That is why many stations create a convenience store where snacks, beverages, and even souvenirs offer a potential of multiple revenue lines.
Also note that you could add a repair shop to your location as a way to provide drivers with mechanical services. Even if you purchase this business without the add-ons available, you can still add them in the future with the appropriate building permits.
Note that when you own a gas station independently, then there are no restrictions placed on how or when you can sell the business. If you are ready to retire or pursue a different opportunity, then you can place this asset for sale. This advantage is possible with franchises as well, although there are more restrictions in place that can sometimes make it a challenge to find a suitable owner. Indeed you need to ensure that the new ownership group has the net worth and available capital to meet the demands of the brand.
Companies like Parkland and Shell work with local providers to create a business opportunity that can generate jobs and profits immediately because of the consumer’s recognition of the branding. Although you must maintain your station based on the standards of the parent company, becoming a franchisee is a fast way to become a local business owner.
When you choose to run a gas station under a franchising agreement, you receive insurance and protection against possible environmental problems that may occur at the site. If inspectors determine that there are issues with your gas station, then it is the franchisor that becomes responsible for correcting the issue and cleaning up the problem. If you are interested in buying a gas station franchise in Canada, here are top choices to consider.
What Gas Station Franchise Opportunities Exist in Canada?
RaceTrac franchise is a chain of petrol stations famous for delivering quality service, convenient locations, and wide product selection. RaceTrac franchise opportunities are for entrepreneurs with business acumen, integrity, and strategic thinking.
The main requirement for a franchisee is a willingness to be actively involved in growing the business. Owning a RaceTrac convenience store & gas station franchise means being a part of a trusted brand, named a top-ranked gasoline retailer.
Petro-Canada’s core offerings include fuel, convenience items, coffee and may also include a car wash or an A&W quick-serve restaurant. All company’s Associates are knowledgeable, motivated, and energetic individuals who are service-focused and possess exceptional leadership skills.
They are expected to have pride in their business, the Petro-Canada brand, and demonstrate exceptional dedication to their community and guests. When you become a Petro-Canada Associate, you will be responsible for operating a location that includes a fuel offering and a convenience store, and may also include a Car wash and/or A&W restaurant.
Canadian Tire Corporation
First and foremost, most successful Gas+ retailers with Canadian Tire share a passion for customer service and possess excellent interpersonal skills. Being fully committed to building a solid business is critical, as well as having a hands-on, lead-by-example, management style.
Previous experience running a business, including an understanding of accounting and administrative functions is an asset but other previous experiences are also valued. Gas+ retailers are expected to also be proficient with Microsoft (Word/Excel/Outlook) and have the ability to meet Canadian Tire business standards and follow pricing guidelines.
An initial investment of $30,000 to $70,000 (to be determined by the size of operation) is required up front for merchandise and inventory. You will also need a bank letter of credit between $10,000 and $50,000 to secure the gas inventory. And to complete the legal agreement between yourself and Canadian Tire, a separately incorporated company in your name must be established.
Shell is always seeking independent business owners across Canada to join its retail network and operate groups of Shell stations, referred to as clusters (a cluster can range from two to four sites). Shell has invested significant effort into clustering its service stations to optimize returns for both Shell and the independent business owners. Note that this business opportunity features no franchise fee and a low-risk operating model.
With leading fuels and lubricants, innovative advertising and arrangements with loyalty programs like Air Miles, the earning potential can be quite appealing. The time is now and opportunities are limited for top-quality business owners with experience in front-line management of 15+ employees in the food or other industry, with P&L responsibility.
Chevron-branded retail and commercial fuel stations in Canada are now owned and operated by Parkland Fuel Corporation. By partnering with this company as a Retailer, you have the opportunity to operate one of its corporate owned stations, and they help ensure that you have everything you need to have a successful start in the retail fuel industry.
With an initial investment of between $90,000 and $190,000, you can become a Parkland Fuel Corp. Retailer, and take advantage of their expertise to make the business you operate a great success. Retailers get instant access to professional support, training, and a proven business model at an existing location.
If you have the finance, commitment, motivation and vibe, becoming a gas station franchisee with any of the above franchise companies can prove to be a very profitable business to start. Just ensure you make your research adequately to see if their vision and concepts align with yours.