Grease Monkey Franchise Cost & Fees
Date of Incorporation: 1978
Franchising Since: 1978
Headquarters: Greenwood Village, Colorado
Business Description: Grease Monkey Franchising, LLC is offering franchises for the operation of businesses that provide automotive lubrication and other approved automotive maintenance and repair services.
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.
Financial Assistance: If the franchisee is purchasing a single, first franchise for a Grease Monkey Center and otherwise qualifies, the $30,000 initial franchise fee may be paid in installments. If the franchisee is purchasing a single first franchise as a veteran of the United States military and qualify under the franchisor’s Veteran Discount Program, the $20,000 initial franchise fee may be paid in installments. Grease Monkey Franchising, LLC has been approved for its franchisees to be eligible for expedited and streamlined Small Business Administration (SBA) loan processing through the SBA's Franchise Registration Program. Except as set forth above, neither the franchisor, nor any agent or affiliate, offers direct or indirect financing to franchisees. Grease Monkey Franchising, LLC does not guarantee a franchisee’s note, lease or other obligations.
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 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 Pit Crew Certification. The franchisor may present seminars, conventions or continuing development programs for the benefit of franchisees. Attendance at most 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: 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. 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.
Term of Agreement and Renewal: The length of the franchise term is 15 years. One renewal term of 15 years is available if requirements are met.
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. The franchisee must keep the Center open and in normal operation for the minimum hours and days Grease Monkey may specify.
Estimated Number of Units: 290
|Name of Fee||Low||High|
|Initial Franchise Fee||$15,000||$30,000|
|Lease, Real Estate and Improvements||$10,000||$18,000|
|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 (Grease Monkey Center)||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, plus $2,000 for each undeveloped franchise right under a TD Agreement; may increase annually based on increases in the Consumer Price Index.|
|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.|
|Local Advertising Allocation||5% of Gross Receipts.|
|Local or Regional Cooperative Advertising||Will vary, but the franchisee is not required to pay more in total advertising costs to the Co-op than 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 depending on the nature of the claim against the franchisor.|
|Insurance Premiums||Will vary under circumstances.|
|Cost of Product Testing and Investigation||Will vary depending on investigation necessary.|
|Resale Assistance Program||$3,600|
The above information has been taken from the FDD of Grease Monkey. Year of FDD: 2015
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