Questions & Answers
The following should provide more details about our corporate leasing model. There are some differences in operating arrangements and requirements in our independent retailer model. If you own a facility and want to work with Husky as an independent retailer, contact us for more information.
- What equipment at the store would I have to provide, and what does Husky provide?
- What if I discover being a Husky retailer just doesn't appeal to me and I want to get out. Can I terminate the agreement, or am I obliged to stay at the station until the contract expires?
- What about other operating expenses, such as utilities, taxes and business license fees? Do I pay for these, or does Husky?
- How much rent do I have to pay?
- How much do I pay my staff?
- What's the arrangement for buying the products I sell at the store?
- How much freedom do I have to run the business the way I want? In other words, can I choose the products I wish to sell, or set my own prices, or set up the store the way I think is best?
- What is my day-to-day working relationship with Husky? Am I dealing with head office on every detail, or does Husky assign someone who works directly with me?
- What level of income can I expect to receive?
- Where does my income come from? Does Husky pay me a salary?
Q: What equipment at the store would I have to provide, and what does Husky provide?
Husky generally provides and owns permanent fixtures such as shelving, displays and the point-of-sale system. Retailers provide movable equipment such as brooms, squeegees and various consumable items.
At a service bay location, Husky owns the hoists, air pumps and similar equipment; Retailers provide tools, instruments, scopes and consumables such as grease, cleaning solutions and paper towels.
Q: What if I discover being a Husky retailer just doesn't appeal to me and I want to get out. Can I terminate the agreement, or am I obliged to stay at the station until the contract expires?
The contract entitles either Husky and/or the retailer to terminate the lease on 90-days' notice without being liable to the other party for damages or compensation. Your prospective District Manager can explain the process in greater detail.
Q: What about other operating expenses, such as utilities, taxes and business license fees? Do I pay for these, or does Husky?
Retailers are responsible for all business-related operating expenses, including utilities, business tax and employment tax. Husky pays property taxes.
Q: How much rent do I have to pay?
For each facility, rent is assessed on a percentage basis for each product category relative to the gross profit opportunity for that category. For restaurants, rent is assessed on a percentage basis of gross sales on a twice monthly basis.
Q: How much do I pay my staff?
You decide staff salaries, based on the revenue available after rent and expenses, in line with labour costs in your area.
Q: What's the arrangement for buying the products I sell at the store?
Gasoline and diesel are purchased from Husky on consignment terms for leased Husky-owned facilities. Terms for merchandise purchased from third-party suppliers (e.g., confectionary, dairy and other food products) are set by the suppliers at their discretion; payment is made directly to the supplier. A relatively small number of suppliers may have different payment arrangements, which they determine at their own discretion.
Q: How much freedom do I have to run the business the way I want? In other words, can I choose the products I wish to sell, or set my own prices, or set up the store the way I think is best?
Husky has a number of plans and programs designed to maximize efficiency and profitability through the 4 Ps of marketing: Product selection, Promotion, Placement and Price. These include supplier programs and merchandising information. Husky also has core supplier program and, as part of their lease agreement with Husky, retailers agree to make purchases from these suppliers. By purchasing through these companies, volume-based savings reduce costs for every retailer in the network. Husky also provides an Every Day Value Price program designed to provide customers with consistent, competitive pricing on key products within our outlets. With these programs, Husky wants to assist you in maximizing the profit margins on the products sold in your store.
Q: What is my day-to-day working relationship with Husky? Am I dealing with head office on every detail, or does Husky assign someone who works directly with me?
Husky has a system of District Managers, whose sole responsibility is to work with Retailers to help them manage their stores as efficiently and profitably as possible.
Q: What level of income can I expect to receive?
It is not possible to guarantee the income-generating power of any given Husky outlet. Income depends on external factors such as location, competition, retail margins, product mix, market share and shrinkage - as well as your own ability and motivation. To be successful as a Husky retailer you must make a commitment to provide and maintain a superior standard of service to your customers. You must also operate your station according to sound business practices, including monitoring the site's financial performance on an ongoing basis.
Q: Where does my income come from? Does Husky pay me a salary?
You collect a commission on each litre of fuel sold. Also, all the profits in the store and car wash - after rent and cost-of-product - belong to you. You pay for operating costs such as utilities, labour and other expenses. Everything else goes into your pocket.
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