Jiffy Lube Franchise Cost & Fees

Date of Incorporation: 1979

Franchising Since: 1995

Headquarters: Houston, Texas

Business Description: The basic Jiffy Lube Signature Service includes: changing a vehicle's oil with up to five quarts of top quality motor oil and replacing the oil filter with a top quality filter; inspecting the brake fluid level, the air filtration system and wiper blades; vacuuming the interior floors and cleaning the exterior windows. If needed, Jiffy Lube service centers also will lubricate the chassis, check and fill the transmission, differential, power steering and window washer fluids, check and fill the battery water, and check the vehicle's tire pressure. Customers are not required to make an appointment for services at Jiffy Lube service centers. The franchisor is Jiffy Lube International, Inc.

Franchise Offer: Jiffy Lube International sells franchises to operate "quick lube" service centers under the name "Jiffy Lube." Quick lube service centers offer oil change and lubrication services for cars and light trucks. Jiffy Lube service centers offer these services along with other similar products and services, some of which requires to be offered and some of which are approved, but optional.

Financial Assistance: The franchisor does not offer direct or indirect financing, except in some instances involving the sale of company operated centers. The franchisor will not guarantee a franchisee's payment of notes or other obligations. In extremely limited situations, franchisor agreed to limited lease guarantees.

Training and Assistance: The franchisee training program consists of 3 full week's instruction. Week one will require the attendance of the franchisee and his/her day-to-day decision-maker. Weeks two and three are required for the day-to-day decision-maker. In addition to the operations training course the franchisor provides computer based training software and associated documents for service center employees covering (a) Jiffy Lube J-Team Service Standards procedures, (b) Health, Safety, Security and Environment (HSSE) and (c) various ancillary services.

Territory: The franchisor will not permit another franchisee to open a Jiffy Lube service center within three miles of the service center; or establish or operate a Jiffy Lube service center, within three miles of the service center. Jiffy Lube can license another franchisee to open a Jiffy Lube service center or establish or operate a service center at any location outside of a three-mile ring; the franchisee won't have any rights of first refusal or similar rights to acquire a new franchise outside of the three-mile ring.

Term of Agreement and Renewal: The length of the term of the franchise agreement is 20 years. Renewal or extension of the term is for two 10-year renewal terms. For the Company Store franchise agreement, the renewal term will not extend beyond the termination or expiration date of the premises lease or sublease.

Obligations and Restrictions: A franchised Jiffy Lube service center must be under the personal supervision of franchisee, or under the personal supervision of a manager who has successfully completed the operations training course. The franchisees cannot sell or offer to perform any product or services that would detract from the Jiffy Lube concept. That is, the franchisee cannot offer tune-ups, major engine overhauls, transmission overhauls, brake adjustment, repair or alignment, muffler installation or automobile painting. The franchisee cannot sell any automobile parts or supplies that are not related to the services offered or any non-automobile related products or services, unless the parts or supplies or products or services are approved.

Estimated Number of Units: 1,985

Selected Investment Costs:

Franchise Fee: $10,000 - $35,000

Estimated Initial Investment Range: $229,000 - $323,000 (doesn’t include real estate development)

Royalty: 4%
 

The above information has been compiled from the FDD of Jiffy Lube along with other sources.

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