Victory Lane Oil Change
Date of Incorporation: September 1980
Franchising Since: 2007
Address: Michigan
Description: Victory Lane Oil Change Centers offer franchises that provide quick oil change, associated automobile products and services and car wash services using the unique and distinctive Business System developed by Victory Lane. All Victory Lane Centers are built to meet Victory Lane's specifications as to size, location and interior and exterior décor.
Franchise Offer: 3 types of franchises;
i) Oil Change Center: For oil change franchises only
ii) Oil Change/Car Wash Center: Combination oil change and car wash franchises
iii) Car Wash Center: For car wash franchises only
Financial Assistance: Victory Lane does not offer direct or indirect financing. Victory Lane does not guarantee notes, leases or other obligations.
Training and Assistance: Training will be provided for a minimum of 10 days for Oil Change and Oil Change/Car Wash Centers and 4 days for Car Wash Centers. The training program will include classroom and on-the-job instruction on topics selected by Victory Lane. Training is provided at no additional cost.
Territory: The franchisee will operate out of a single "Franchised Location" within an "Exclusive Area." The Exclusive Area will be the area within a one-mile radius of the franchised location. Victory Lane will not franchise, license, develop, own or operate another Victory Lane Center in the Exclusive Area.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years and the renewal or extension of the term is for one additional period of 10 years. The franchisee must give 180 days notice; have complied with all material terms and conditions of the current Franchise Agreement for the renewal or extension of the term.
Obligations and Restrictions: Victory Lane recommends that the franchisee participates in the operation of the Victory Lane Center. The franchisee and the Manager must successfully complete the training program. The Center must be open during the business hours as specified in the Operations Manuals.
Total Number of Units: 34 franchised units at the end of the year 2007
Investment Table:
Initial Investment:
| Name of Fee |
Low |
High |
|---|---|---|
| Initial Fee |
$30,000 |
$30,000 |
| Initial Package Fee |
$5,000 |
$5,000 |
| Leasehold Improvements |
$10,000 |
$30,000 |
| Architectural and Engineering Fees |
$8,000 |
$25,000 |
| Wages, Travel and Living Expenses During Training |
$2,000 |
$4,000 |
| Furniture, Fixtures and Equipment |
$60,000 |
$80,000 |
| Computer System |
$18,000 |
$21,000 |
| Signs |
$8,000 |
$30,000 |
| Initial Inventory and Supplies |
$9,000 |
$14,000 |
| Lease Payments - 3 Months |
$9,500 |
$21,000 |
| Employee Salaries - 3 Months |
$18,000 | $25,000 |
| Insurance - 3 Months |
$1,200 | $2,500 |
| Miscellaneous Fees |
$2,000 |
$5,000 |
| Opening Advertising |
$4,000 |
$4,000 |
| Additional Funds - 3 Months these figures have not been offset by operating revenues |
$35,000 |
$65,000 |
| Total if premises leased |
$219,700 |
$361,500 |
| Total if land and building purchased |
$410,500 |
$1,211,500 |
Ongoing Costs:
| Name of Fee |
Amount |
|---|---|
| Royalty Fees (Oil Change and Oil Change/Car Wash) |
The greater of 6% of weekly Revenues or $250 |
| Royalty Fees (Car Wash only) |
6% of weekly revenues for an in-bay automatic car wash, and $100 per month per self serve bay |
| Advertising Fund Contributions |
2% of weekly Revenues |
| Advertising Fund Contributions (Car Wash) |
1% of weekly Revenues for in-bay automatic car wash. |
| Local Advertising |
5% of monthly Revenues |
| Audit Fees |
Amount incurred by Victory Lane to audit Center, estimated to range from $500 to $1,000 |
| Assignment Fee |
$5,000 |
| Collection Costs |
Amount incurred by Victory Lane to collect unpaid fees, estimated to range from $500 to $1,000 |
| Interest Charges |
The lesser of 18% per annum or the maximum legal rate allowable by applicable law |
| Administrative Fees |
$50 per delinquent payment |
| On-site Training |
If the training is conducted at the Franchised Location, then the franchisee muct pay the then-current training fee, which is currently $325/day |
| Relocation Fee |
$5,000 |
| Reacquisition Fee |
15% of then-current Franchise Fee |
| National Convention Registration Fee |
Then-current registration fee; currently $500 |
| Review of Unapproved Supplier |
Reimburse Victory Lane for the expenses it incurs inspecting an unapproved supplier, estimated to range from $300 to $3,250 |
The above information has been taken from the UFOC/FDD of Victory Lane Oil Change Inc.
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