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Here’s The Real Jiffy Lube Franchise Cost
In the US alone, there are more than 270 million vehicles registered. Just imagine the profitability of businesses that provide car maintenance and services. It’s no wonder that a lot of people consider franchising Jiffy Lube. If you are one of them, this post should help you identify if you can meet the requirements. Likewise, we will share with you detailed information on Jiffy Lube franchise cost.
Franchise Description
Jiffy Lube started in 1979 and began to offer franchises that same year. To date, they have around 2,095 units and is headquartered in Houston, Texas.
The franchisor of the company is Jiffy Lube International Inc. This is a wholly-owned subsidiary of Pennzoil-Quaker State Company or dba SOPUS Products. SOPUS Products is a wholly-owned subsidiary of Shell Oil Company. And the Shell Oil Company is a wholly-owned subsidiary of the world-renowned group, Shell Petroleum Inc.
Jiffy Lube offers lubrication and oil change services for various vehicles. It also covers other automotive repair requirements.
Franchisee Training
Before you can start your operations, the franchisees or the decision-makers for the daily operations should complete the entire training course. The Franchise Boot Camp is held in Houston, Texas.
The franchisor will offer regular management training courses for service center managers. The franchisees and the managers must be able to complete training every five years. If the franchisor believes that there is a need for additional training, they will recommend these to the franchisees.
Territory
Generally, the franchisor will not grant another franchise within three miles of the service center. Likewise, they cannot operate another Jiffy Lube service center within the aforementioned proximity. Franchisees will not have any rights of first refusal to obtain a new franchise outside the three-mile radius.
Franchisee Obligations
The franchisee will need to comply and abide by the Policies and Procedures Manual and Franchise Agreement. The center must be supervised by the franchisee or designated persons approved by the franchisor. The designated persons must undergo the necessary training.
If they would like to offer the Jiffy Lube Multicare, there must be one technician who has obtained ASE A5 certification.
The franchisee should not offer nor provide products and services that are not according to the Jiffy Lube concept. The franchisor is particular with the offerings that the franchisees could provide, which should be followed at all times. It is mandated that everything must be pre-approved by the franchisor.
Term of Agreement
The term of the initial agreement is good for 20 years. If the requirements are met, it could be renewed for another 10 years.
Financial Assistance
There are several financing options offered by the franchisor. These can be discontinued without prior notice.
Did You Know?
When you are looking for a company to franchise, you should not only look at the capital or financial investment. You must also consider its reputation and even culture. After all, you are going to represent the brand, and it will directly reflect your own beliefs and principles. So before we provide the estimated Jiffy Lube franchise cost, here are a few interesting things about the company.
‘Do More’ Program
The Jiffy Lube sure knows how to pay it forward. They have created this amazing program called ‘Do More’ to help volunteers who drive their vehicles for a greater purpose. For example, these people use their cars to drive cancer patients to the hospital, or they provide hot meals to a family who needs them. As part of their social responsibility, Jiffy Lube gives them a year of vehicle maintenance services.
They support volunteers from several organizations, including Kids’ Meal, Ride Connection, Houston Ground Angels, and the American Cancer Society, to name a few.
MyJiffyLube App
The company is also keeping up with the times as they now have their app intended for drivers. With this app, you can properly schedule your vehicle’s maintenance. You can even find your car’s history so you can plan your visit. You can download it from the App Store and Google Play. Plus, you can access it via the website.
2000 Locations Nationwide
You do not have to doubt the credibility of the Jiffy Lube franchise. To date, they have 2000 locations nationwide. This proves the caliber of the business and the support you can get as a franchisee. And with 35 years of experience under its belt, they sure know how to lead the market.
Fleet Programs Available
There are also fleet programs available for companies. They will be provided by highly trained professionals and your clients will always get outstanding services. A dedicated account manager will also be assigned. As for you, the franchisee, you will get profits on a massive scale.
Jiffy Lube Credit Card
You can also offer Jiffy Lube Credit Cards to your clients where they can enjoy more promos and discounts. This includes 6-months of special financing, flexible payment options, and online access to account information.
Jiffy Lube Franchise Cost
It’s time to assess if you are financially capable of starting a franchise. Below is a detailed list of the estimated Jiffy Lube Franchise Cost.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $35,000 |
| Conversion Fee | $17,500 | $17,500 |
| First Month’s Rent and Security Deposit | $16,000 | $17,500 |
| Equipment, Signs and Fixtures | $100,000 | $305,000 |
| Initial Inventory | $20,000 | $30,000 |
| Opening Marketing Expense | $15,000 | $20,000 |
| Insurance | $10,000 | $20,000 |
| Training expenses incurred by franchisee or employees (does not include wages or salaries of attendees) | $1,000 | $5,000 |
| Additional Funds (working capital) – 6 months | $45,000 | $45,000 |
| Growth Funding | $0 | $77,350 |
| ESTIMATED TOTAL | $207,000 | $422,650 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | For new-to-system locations:0% of gross sales for 1st 6-month period of operation, and4% (or 3% of gross sales if franchisees pay the Royalty on or before the due date), for 7th month of operation onward (5% if the Pacesetter Supply Agreement is terminated and attachment to the Franchise Agreement has been executed). |
| Remedial Expenses | An amount that the franchisor specifies if the franchisee has breached a provision of the Franchise Agreement and such breach results in harm to the Jiffy Lube brand or the franchisor or other Jiffy Lube franchisees. |
| POS Support Charge | The then-current fee, which will not exceed $160 per month per POS System installed, unless approved by TSAB or required under contract with Jiffy Lube’s POS System support provider that has been approved by the franchisor and the TSAB. |
| Hardware Support | Currently $68 per month (prices are subject to change on 30 days’ notice upon the approval of TSAB). |
| Data Delivery Service (optional) | Monthly fee based on the number of stores operated by the franchisee (currently $200 for 1 to 25 stores, $400 for 26 to 99 stores, or $850 for >99 stores) plus operational and maintenance expenses. |
| Training Expenses | Expenses the franchisor incurs when it offers training for franchisees or their managers; this does not include wages or salaries of attendees for which the franchisee is responsible. |
| Product Testing Expense | Expenses the franchisor incurs in testing a product the franchisee wants to use, but which the franchisor has not included in a list of similar products that meet its standards. |
| Fleet Processing Charge | An amount the franchisor may specify at times during the term of the Franchise Agreement. Currently $1.25 per national fleet invoice billed by the franchisor. |
| Auto Integrate Processing Charge | Any amount the franchisor may specify at times during the term of the Franchise Agreement. Currently, $0.065 per fleet invoice automatically approved by the Auto Integrate fleet invoice verification program. |
| Jiffy Lube Multicare National Warranty Program | $7.00 per month. |
| Audit Expenses | Expenses the franchisor incurs in the course of auditing the franchisee’s books or financial records. |
| Service Charges | The lesser of (a) 2% per month or (b) the highest rate permitted on all past due amounts. |
| Transfer Fee | $3,500 plus the franchisor’s actual expenses. |
| Renewal Fee | $10,000 for the renewal term, subject to adjustment using the Consumer Price Index (utilizing 1982-84 = 100 as a base year). |
| Relocation Fee | $7,500 |
| National Advertising Fund (the “Ad Fund”) Contributions | 1.5% of gross sales. |
| Local/Cooperative Advertising | 2.5% of gross sales. |
| Local Advertising | 5% of Gross Sales; 4% if the franchisee signs the Product Supply Franchise Agreement. |
| Minimum Advertising Requirement | 4% of gross sales. |
| BTS Development Reimbursement | $25,000 |