For someone with a strong work ethic, an entrepreneurial spirit and a commitment to sticking with a winning formula, running a franchise can offer the best of all worlds.

The thought of operating a business with the power of an internationally recognized brand proved very compelling for George Sousa of Langley, British Columbia. Sousa worked part time for an independent business owner at a Shell service station, as he studied to become a lawyer in the 1990s. He quickly rose through the ranks after accepting a full-time Manager position and didn't think twice when offered the opportunity to become an independent business owner himself in 1997.

Piloting the shift from single to multiple sites
Over 10 years later, in December 2008, Sousa became one of Shell's first independent business owners to run a number of sites - a cluster - in his region. His cluster is currently comprised of four sites in the Langley and Surrey markets, with plans for a fifth to open soon. Cluster Retailers (independent business owners) run from two to six sites each in the newly launched program.

"I perform better and am more motivated when I am working under pressure with a number of things going on," he says. "The cluster model lets me delegate much of the day-to-day operations to my two Assistant Managers who float between sites, allowing me to manage the business and assemble and retain the right team."

	Shell Retailer George Sousa at one of his service stations in Langley, B.C.

Sousa participated in a pilot to assess the new delivery model and his feedback from the front line has helped to shape the program as the concept is implemented across Canada. For example, his advice led to changes as to how costs for expired and 'about to expire' product are allocated during the owner changeover process.

Taking on multiple sites not only requires an increased focus on the big picture, but a significant investment to purchase convenience store inventory like milk and potato chips, not usually eligible for bank financing as perishable goods.

Innovative program provides financing to qualified candidates
Shell Canada and Scotiabank created an innovative Scotiabank program that recognizes an investment of this size may be a stretch for some otherwise qualified candidates. Once accepted into the program, Cluster Retailers across Canada can get access to a line of credit to fund general requirements, working capital and inventory, and a term loan with the option to fix the rate. Loans can be refinanced upon renewal of the Retailer Business Agreement with Shell Canada.

"Although individuals must qualify for the program on their own merits, they don't have to convince us of its viability or put up personal collateral such as their residences because we already understand the business and the power of the Shell brand," says John Dykeman, Director, Franchising, Scotiabank.

Sousa, who now employs 38 people, experienced this first hand. "I approached another financial institution on my own and they quickly closed the door," he says. He reinforces that with Scotiabank he had to "sell myself but not the business."

The program is a major value-added benefit for those considering this type of venture, according to David Saint-Laurent, General Manager, Retail Sales and Operations, Shell Canada.

"As benchmarked against the franchise industry, this model provides a greater average return on capital employed," he states. "The combination of financing and ongoing cash management features makes it accessible to many people who have the right attributes to be successful but simply require financial backing and access to banking services."

Cluster Retailers own the convenience food store inventory and receive commissions on all other lines of business including petroleum product sales. With leading fuels and lubricants, innovative advertising plans and long-standing arrangements with loyalty programs like AIR MILES, the earning potential for business owners can be quite attractive.

Cash management features allow owners to oversee the business remotely
The shift to overseeing multiple sites means spending time "managing and communicating with people instead of getting in there and doing everything myself," says Sousa, adding that cash management features in the program allow this to happen.

Cluster Retailers have access to a suite of banking and cash management services at a preferred price. Cash from each location can be conveniently deposited at any Scotiabank branch, or any other financial institution in Canada, and transferred by a service, known as Consolidated Cash Plan (CCP), into one central business account. This helps to accelerate cash flow by receiving immediate credit for deposits without Sousa or his Assistant Managers having to personally pick up cash from the sites. Night deposits also offer next-day availability, which can provide added convenience to quickly and safely make deposits any time to any Scotiabank branch.

Each deposit along with credit and debit card receipts can also be monitored online using ScotiaConnect® electronic banking or by a daily electronic file of all the account transactions. The ScotiaConnect platform also lets Cluster Retailers transfer funds, pay bills and make payments, including delivering each employee's pay directly into their bank account on payday.

By monitoring their cash flow and maximizing the use of their cash resources, Cluster Retailers are able to take advantage of opportunities to reinvest in the business, improve sales performance and reduce administration. The package developed by Shell and Scotiabank, along with a simple payment structure that does not strain cash flow, means that both Shell and their Retailers are positioned for success.

Sousa says that it is too early to pinpoint the return on his multi-site investment, but he is positive that things are headed in the right direction with his talented team and the combined strength of two great brands behind his business.