Jiffy Lube
Jiffy Lube offers convenient oil changes and light repairs for cars and light trucks. Known for quick service, it operates freestanding service centers in the automotive maintenance franchise industry.
About Jiffy Lube
Jiffy Lube International, Inc. is an American chain of automotive oil change specialty shops founded in Utah, United States, in 1971. It has been a subsidiary of Shell since 2002, and is headquartered in Houston, Texas.
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Jiffy Lube franchise FAQ
How much does it cost to open one — the total initial investment?
The initial investment necessary to begin operation of a new freestanding Jiffy Lube service center ranges from $236,000 to $452,650 (excluding real estate costs), as mentioned in [p.1]. This includes the required payment to the franchisor or its affiliate of $35,000 to $85,000, among other expenses.
What is the initial franchise fee?
The initial franchise fee for a new Jiffy Lube service center is $35,000, of which $10,000 is paid upon signing the Franchise Agreement and the remaining $25,000 is due on the 15th day of the month after the service center opens. This fee may be waived under certain conditions as described in the FDD [p.26-27].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is four percent (4%) of Gross Sales for a new or relocated/replacement Jiffy Lube franchise center. Royalty payments are due on the 15th day of each month, based on the preceding month's sales [p.132]. Additionally, franchisees must contribute to the Jiffy Lube National Advertising Fund as part of their advertising contribution requirements [p.12]. The specific amount for this contribution is not detailed in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 20 years, plus one additional 10-year renewal term [p.287]. Therefore, the total initial franchise agreement duration is 30 years before any potential renewal [p.287].
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, a transfer fee as described in Section 10.2.4(h) of the Agreement must be paid to the franchisor [p.131]. This fee may vary depending on whether it's replacing an existing agreement being transferred to a new owner and doesn't override any other transfer fees required by this or previous agreements [p.131].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.587]. However, certain provisions for termination may not be enforceable if they do not constitute 'reasonable cause' as defined under Virginia Retail Franchising Act or Virginia laws [p.589].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you do get an exclusive right to locate, acquire, open, and operate a Service Center within the defined Site or Area. However, this exclusivity is subject to certain conditions and may expire if not acted upon diligently by you [p.281]. Additionally, territorial protection depends on the continuation of the Product Supply Agreement [p.61].
What training and ongoing support does the franchisor provide?
The franchisor provides initial operations training and training on using their point of sale computer system for new employees at the opening of the Franchised Center [p.135]. For ongoing support, they offer software support from 6:00 a.m. to 10:00 p.m. central time, Monday through Friday, with extended hours on weekends [p.50]. Additionally, management training courses are provided every five years for managers and assistant managers [p.50], and there is ongoing support available via remote technical assistance during the conversion process to their new POS system [p.183].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual or potential financial performance information of its outlets if there is a reasonable basis for it and it meets certain conditions. This includes providing actual records of existing outlets being considered, or supplementing the information in Item 19 with additional details [p.73]. However, the franchisor does not make any financial performance representations other than those specified, nor do they authorize their employees to make such representations [p.81].
What am I restricted to selling, and where must I buy supplies?
You are required to buy 100% of bulk motor oil and 85% of all non-bulk Qualifying Products from the franchisor or their designee [p.51]. Additionally, you may have to purchase items from a limited group of suppliers designated by the franchisor, which could be more expensive than other options [p.3]. There are no specific restrictions mentioned on what you can sell, but operating restrictions might control your location and access to customers [p.3].