Grease Monkey Franchise Cost & Fees
Date of Incorporation: 1978
Franchising Since: 1978
Headquarters: Greenwood Village, Colorado
Business Description: Grease Monkey Franchising, LLC is the franchisor. Grease Monkey businesses provide oil changes and preventive maintenance services for cars and trucks to the general public.
Franchise Offer: The franchisor offers franchises for the operation of businesses that provide automotive oil and lubrication and other approved automotive maintenance and repair services under the service mark and other trademarks, service marks, logos and identifying features using the franchisor’s proprietary licensed methods of doing business. Grease Monkey franchisees may also operate a Monkey Shine car wash facility which provide car wash services to the general public (additional costs apply).
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Training and Assistance: Before the opening of the Grease Monkey Center, the franchisee or the franchisee’s Principal Owner is required to attend and complete the initial training program to the franchisor’s satisfaction. The initial training program consists of approximately five days for a Center and three days for a Facility of classroom and hands-on training. The franchisor reserves the right to increase the length of the Initial Training Program by up to five additional days. The franchisor also may offer franchisees and their employees optional or required training programs to obtain certification as a specialist in certain of the services that it offers, such as obtaining Certified Pit Crew Certification. The franchisor may present seminars, conventions or continuing development programs for the benefit of franchisees. Attendance at many of these seminars is voluntary. However, the franchisee or the franchisee’s Manager or Principal Owner must attend any mandatory seminar, convention, or program Grease Monkey may offer. Franchisees and their Managers need not attend any mandatory seminar, convention or program more than once per year.
Territory: Grease Monkey Franchising, LLC designates a geographic area in which a site will be located for the franchisee’s Grease Monkey Center. The Designated Area is designated solely to select a proposed suitable location for the Center and does not give the franchisee any exclusive rights to the Designated Area nor imply any other territorial rights either before or after execution of a Franchise Agreement. Franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets the franchisor or affiliates own, or from other channels of distribution or competitive brands that the franchisor controls.
Term of Agreement and Renewal: The length of the franchise term is 15 years. If franchisees are in good standing and they meet other requirements, they have the option to renew for: (a) one renewal term of 15 years; or (b) one renewal term of five years with an automatic extension for five additional years.
Obligations and Restrictions: The franchisee (or principal owner) is not obligated to participate personally in the direct operation of the Center, although it is recommended. If the franchisee (or principal owner) does not participate in the day-to-day operation of the Center, a manager must be designated to be responsible for the direct on-premises supervision of the Center or Facility. If the franchisee is a corporation, limited liability company or partnership, the manager need not own an equity interest in the entity. The franchisee, principal owner or manager must devote full time and best efforts to the management and operation of the Center. The franchisee or, if applicable, the principal owner, must successfully complete the mandatory initial training program by demonstrating to the franchisor appropriate levels of competence in the subject matters taught in the training program, in the franchisor’s discretion. The franchisee must use the Franchised Location solely for the operation of the Grease Monkey Center (and Monkey Shine, as applicable). The franchisee must keep the Center open and in normal operation for the minimum hours and days the franchisor may specify.
Estimated Number of Units: 300
|Name of Fee||Low||High|
|Initial Franchise Fee||$15,000||$30,000|
|Lease, Real Estate and Improvements||$10,000||$18,000|
|Center Development Program||$0||$16,000|
|Equipment, Furniture, Tools and Installation||$58,195||$97,350|
|Initial Training - Travel and Lodging Expenses||$1,000||$5,000|
|Computer Hardware and Software||$5,000||$19,500|
|Additional Funds (3 months)||$40,000||$80,000|
|TOTAL ESTIMATED INITIAL INVESTMENT||$164,195||$319,850|
|Type of Fee||Amount|
|Royalty||5% of Gross Receipts.|
|Advertising Contribution||Up to 0.5% of Gross Receipts.|
|Audit Fee||Cost of inspection or audit and cost of re-audit within one year of current audit.|
|Renewal Fee||$0 to $5,000|
|Interest||Lesser of 1.5% per month or highest rate of interest allowed by law.|
|Local or Regional Cooperative Advertising||Established by cooperative members.|
|Additional and Training or Assistance Fees||Will vary under circumstances.|
|Costs and Attorneys' Fees||Will vary under circumstances.|
|Professional Fees and Expenses||Will vary under circumstances.|
|Indemnification||Will vary under circumstances.|
|Insurance||Reimbursement of the franchisor’s costs, plus a 20% administration charge.|
|Supplier and Product Evaluation Fee||Costs of inspection (estimated to be approximately $100 to $500)|
|Resale Assistance Program||$3,600|
The above information has been taken from the FDD of Grease Monkey. Year of FDD: 2016
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