Hello guys!!!!!!!!!

i am new to this forum but i have heard through a friend of mine that the people in this forum really do help by providing useful information.

My question is about "Canadian Tire" gas station can anybody in this forum tell me about them.I have read there facts and figures and they seem to be impressive.

Are "Canadian tire" gas stations popular in Canada.Are there convenient stores modren and do there stores make profit???

According to the website the investment required is $20,000 to $50,000.
My cousin is getting an opportunity to apply for a "Canadian Tire" Franchise.I want to ask from the people of this forum should my cousin invest in canadian Tire or not.

I hope that you people help me with my question.I would love to hear some advice from you people......

Bye tc!!!!!!!!!!!!!!!!!!

Canadian Tire is not only a gas station but a super-store. They do have gas stations.

All you need to know is numbers! Gas station is a certain kind of business and if you have experience running it you can easily know weather they are profitable or not. Second not all business of a kind having same profit level. It depends on location, community, weather and lot of other factors.

As they are modern stores for sure (Now it is upto you to define what is modern)

I am surprised to know the investment requirement is such a low. Is it true?

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A Proud Indian Canadian

Yep....I am surprised too that Canadiantire offers franchise for that low 20K to 50K investment. First of all they do not count the money that is to be financed as your investment. Secondly it is much higher than that when I inquired from them. But for sure they give you project report and work out time phase profitability. You are safer with them compare to a grocery store or something similar which is the only option with that kind of investment you are looking at.

What place they are offering franchise for that low investment?

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Check for pervert's database here http://www.perverted-justice.com

Hi again

Thanks for the info Garvo Gujarati & Charlie i really do appreciate it.I would like to share with you guys a link i read it yesterday which shows the investment required.

http://www2.canadiantire.ca/CTenglish/petroleum/ctcpt_bizopps_opp.htm

On this site they are saying that "depending on the complexity of the site, the value of non-gas inventory can be between $5,000 and $30,000".I want to know what do they mean when they say "non-gas investory".

My other question is if you buy a running gas station or a convenient-store(which is present on a gas station)will the new buyer go through the interview phase before taking over or will he be going through a routine training program which the company offers?

Garvo Gujarati you are absolutly right it depends on location, community, weather and lot of other factors.

looking forward to your response
Thanks bye tc..........

Quote:

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Originally posted by maxmac


On this site they are saying that "depending on the complexity of the site, the value of non-gas inventory can be between $5,000 and $30,000".I want to know what do they mean when they say "non-gas investory".

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Check for pervert's database here http://www.perverted-justice.com

I did do some research into this venture some time ago. (7yrs or so) One of the things that struck me was that this is not a franchise - but a dealership. So you do not have to actually buy the as suggested by someone here. You just need a enough creditworthiness to secure the gas in the tanks.

Some of the differences between a dealership and franchise are:-

1) The corporation owns the inventory in a dealership. In a franchise, the franchisee owns the inventory.

2) The property is owned or leased by the franchisee. The franchisor acts as a guarantor. In a dealership, the corporation owns /leases the property.

3) The revenue from the business is collected by the corporation and the dealer gets a certain fixed amount - either % of sales or $ per liter. On the other hand, in a franchise, the franchisee collects and books revenue, and pays the franchisor a % of sales.

I hope that helps.

BV

Yes, Garvo Gujararti and Charlie are quite right. If its an investment of $20000-50000 ,then its the site location, its annual convenience business potential , its historical sales, car wash- if any, number of competitors around... everything needs to be considered and that too with a pragmatic approach. Sometimes, the mere impatience and the haste of getting into business can lead to unwarranted trouble.

Remember, its like riding a tiger! If you are seated on it, you shall end up going exactly where the tiger goes. If you get down prematurely, then you know what a tiger does!

Anyways, does this include the Bank Guarantee sum that normally all Oil Companies ask for? Seems, its overlooked. You may ask for all the historical sales figures and their revenue projections from the Company. Training may be a neccessity, I guess.

I am mentioning this because I am in this very field for the past many many years.... even in Canada... in Ontario.

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Lead, Kindly Light!!