Grease Monkey
Date of Incorporation: January 6, 2006
Franchising Since: April 1, 2006
Address: Colorado
Description: Grease Monkey International, Inc., a Colorado corporation that was incorporated on September 28, 1978, was the franchisor of the Grease Monkey franchise system from approximately September 1978 through March 2006. Grease Monkey International remains the franchisor of all Grease Monkey franchises granted before April 2006. Grease Monkey International owns the marks and licensed methods to Grease Monkey Franchising.
Each Grease Monkey Center offers the general public automotive oil and lubrication services, along with a preventive check and fill of fluid levels in a vehicle and other authorized services. In addition, selected automotive products are offered for sale. Customers are serviced without prior appointment.
Franchise Offer: Grease Monkey Franchising LLC offers franchises for the operation of quick service automotive oil and lubrication centers. Grease Monkey Centers are generally built to the franchisors specifications as to interior and exterior style. Most Grease Monkey Centers are free standing structures with drive through capability.
Grease Monkey franchising also offer a Conversion Franchise, which is a franchise established at the site of an operating automotive lubrication center owned by the franchise applicant.
Financial Assistance: Grease Monkey franchising has been approved for our franchisees to be eligible for expedited and streamlines Small Business Administration (SBA) loan processing through the SBA’s Franchise Registration Program.
Grease Monkey franchising does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: Before the opening of the Grease Monkey Center, the franchisee and/or the Manager are required to attend and complete to the franchisors satisfaction the initial training program conducted at the times and location designated by the franchisor. The initial training program consists of approximately five days of classroom and hands-on training. If the additional initial training is conducted at a Certified Training Center, the franchisee must pay to the operator of the Certified Training Center tuition equal to $150 per week. Otherwise, the franchisor does not charge the franchisee for training for up to two persons.
Territory: The franchisee does not receive an exclusive territory under the Franchise Agreement, nor the assurance of a specific distance between Franchised Locations. The franchisee may face competition from other franchisees, from outlets that the franchisors or their affiliates own, or from other channels of distribution. The franchisee may solicit customers using the Internet, telemarketing or other direct marketing from any geographic area.
Term of Agreement and Renewal: The term of the franchise agreement is 15 years with an option to renew for an additional 15 years if certain conditions are met. There is a renewal fee of $5,000.
Obligations and Restrictions: The franchisee (or the managing shareholder or partner) is not obligated to participate personally in the direct operation of the Grease Monkey Center. However if the franchisee does not participate in the day-to-day operation of the Center, the franchisee must designate a manager to be responsible for the direct on-premises supervision of the Center.
The franchisee must use the franchised location solely for the operation of the Grease Monkey Center. Under the Franchise Agreement the franchisee must sell or offer for sale only those services and products which meet or exceed the franchisors standards and specifications and must sell or offer for sale all types of services and products specified by Grease Monkey Franchising.
Total Number of Units: The total number of franchised units for 2007: 234
Investment Table:
Initial Investment:
| Name of Fee | Low |
High |
|---|---|---|
| Initial Franchise Fee |
$18,000 |
$30,000 |
| Lease, Real Estate and Improvements |
$10,000 |
$17,000 |
| Equipment, Furniture, Tools and Installation |
$66,000 |
$106,700 |
| Grand Opening |
$7,500 |
$10,000 |
| Initial Inventory |
$16,000 |
$20,000 |
| Signs |
$10,000 |
$30,000 |
| Supplies |
$1,000 |
$2,000 |
| Initial Training- Travel and Lodging expenses |
$1,000 |
$3,000 |
| Computer Hardware and Software |
$10,000 |
$19,500 |
| Prepaid Expenses |
$2,000 |
$3,000 |
| Additional Funds |
$40,000 |
$80,000 |
| Total Estimated Initial Investment |
$81,500 |
$321,200 |
Ongoing Fees:
| Name of Fee |
Amount |
|---|---|
| Royalty |
5% of Gross Receipts |
| Advertising Contribution |
Up to 1% of Gross Receipts |
| Audit Fee |
Cost of inspection or audit and cost of re-audit within one year of current audit |
| Transfer Fees |
$5,000 |
| Renewal Fee |
$5,000 |
| Product and Equipment Purchases |
Will vary (See current published price list) |
| Interest |
Lesser of 1.5% per month or highest rate of interest allowed by law |
| Late Charges |
$50 |
| Local Advertising Allocation |
5% of gross receipts |
| Local or Regional Cooperative Advertising |
Will vary, but you are not required to pay ore in total advertising costs to the Co-op then the Local Advertising Allocation |
| Additional and refresher Training and Expenses |
Then current published rate |
| Costs and Attorneys’ Fees |
Will vary under circumstances |
| Indemnification |
Will vary under circumstances |
| Insurance Premiums |
Will vary under circumstances |
| Cost of product Testing and Investigation |
Will vary depending on investigation necessary |
The above information has been taken from the UFOC/FDD of Grease Monkey Franchising LLC .
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