Strickland Brothers
Strickland Brothers offers quick oil change services with additional maintenance checks. Known for speed and convenience, it operates in the automotive service center industry.
Strickland Brothers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Strickland Brothers 10 Minute Oil Change Business is between $247,900 and $391,900 under a full development option or $756,936 to $1,899,334 under a ground lease option. This includes a mandatory payment of between $64,849 and $69,139 to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $54,900 and it is fully earned by the franchisor once paid; this fee is not refundable under any circumstances. [p.91, p.18]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Revenues, payable on or before the 15th day of every month [p.91]. Additionally, Franchisees must contribute 2% of their Gross Revenue to the Brand Fund for advertising and marketing purposes, which must be paid together with each payment of Royalty Fees [p.37, p.94].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you have the option to renew the agreement for one renewal term of 15 years following the end of the initial term, subject to certain conditions being met [p.88].
Can I sell or transfer my franchise, and what does that require?
The franchise agreement permits a transfer of ownership only for good cause as determined by the franchisor [p.6]. Additionally, during the term of the franchise, your territory may not be modified except through a written agreement between you and the franchisor [p.46]. This means any sale or transfer would likely require negotiation and approval from the franchisor based on their criteria for good cause.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.242]. Additionally, the franchisor may terminate the agreement if you fail to comply with lawful provisions in the franchise agreement and do not cure such failure within a reasonable time frame [p.6(c)]. This isn't specified in the excerpts for other specific grounds of termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a transferee, you must meet the franchisor's then-current requirements for new system franchisees, which include possessing sufficient net worth and sources of capital. [p.110] However, specific minimum net worth or liquid capital figures are not provided in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.46]. However, your location is within a designated territory as specified in Sections 4.1 and 4.2 of the Franchise Agreement [p.125], but this does not provide exclusivity from competition by other franchisees or Service Centers owned by the company [p.46].
What training and ongoing support does the franchisor provide?
The franchisor provides both initial [p.89] and continuing [p.90] training programs to maintain brand standards and protect goodwill. Initial training is mandatory for key personnel before opening, with no charge for the Principal Owner, General Manager, and one additional participant [p.89]. Continuing training may be offered on an optional or mandatory basis at Franchisor's discretion, and participants must complete it to Franchisor's satisfaction [p.90]. Expenses related to these trainings are typically borne by the franchisee, including travel, lodging, meals, and other incidental expenses for both initial and continuing programs [p.90].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that as of December 31, 2022, there were 3981 Affiliate-owned Strickland Brothers 10 Minute Oil Change locations [p.62]. However, the number of closed or terminated outlets is not specified in the provided excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations except for providing actual records of an existing outlet if a franchisee is purchasing one. [p.72] However, they may provide financial performance information if there is a reasonable basis and it is included in the disclosure document. [p.62]
What am I restricted to selling, and where must I buy supplies?
You are not restricted in the customers to whom you may sell approved services or products [p.28], but you must buy all business operational items from suppliers designated or approved by the franchisor [p.4, p.28]. This includes finding these names in the Operations Manual or other written communications from the franchisor [p.28].