2016 Guide to. FAST Lube Programs and Franchises AUTO-LAB CHEVRON CASTROL (BP LUBRICANTS) HAVOLINE XPRESS LUBE

Transcription

1 2016 Guide to FAST Lube Programs and Franchises Opening a new fast lube or changing a fast lube s operating plan can be a daunting task because of the large number of programs available. Potential operators or those looking to shake up the way they re currently doing business can choose to operate their facilities independently, as part of a larger signage agreement with an oil company, as a turnkey operation or as a franchise. Those are only a few of the many ways in which operators and prospective operators might choose to run their facilities. To help our readers better understand some of the options available to them, we have assembled the following list of fast lube programs. We compiled this list by contacting the top chains listed in the National Oil & Lube News TOPS in the Fast Lube Industry rankings to find out what options they offer, as well as contacting companies that offer other options. All information supplied by the responding companies is believed to be accurate and correct as of press time. Additional facts courtesy of the 2015 National Oil & Lube News Oil Change and Oil Change-Plus Surveys. AUTO-LAB Territory: Regional - Midwestern & Southeastern States Franchise fee: $27,500 Royalty percentage required: 6% Individual Qualifications: Working capital $10,000 to $50,000 Advantages of Auto-Lab plan: At Auto-Lab, we provide a professional approach to today s automotive technology. By combining proper diagnoses, excellent repair work and total commitment to the customer, Auto-Lab Complete Car Care Centers has established itself as a reputable, efficient and professional automotive repair organization. For more information, contact: Ted Price, tedprice@autolabusa.com CASTROL (BP LUBRICANTS) BP Lubricants USA Inc. builds business partnerships with its independent lube center customers by delivering premium products, unparalleled marketing efforts, extensive training and value-added programs. The Castrol portfolio of quick lube programs includes Castrol Premium Lube Express for operators interested in harnessing the power of a nationally consistent image and the highest level of programs and support. The Castrol Co-Branding Program is also available for customers who want to identify with the Castrol brand. Fast lube option: License agreement, signage agreement Advantages of Castrol plan: Castrol s portfolio of quick lube programs means you can find the right program to meet your needs. The Castrol brand name means you offer a full line of leading, premium synthetic and conventional motor oils, as well as a wide range of automotive ancillary products and heavy-duty lubricants. All of this means you have a partner to help grow your business. For more information, contact: Kate Weis, kate.weis@bp.com CHEVRON HAVOLINE XPRESS LUBE Chevron s Havoline xpress lube is a fully-branded, nationally recognized and supported oil change program without franchise/royalty fees. It is one of the most attractive fast lube images available on the street today. Fast lube option: License agreement 1 NOLN

2 Advantages of Havoline xpress lube plan: Chevron s Havoline xpress lube is the sharpest quick lube on the street. We offer a relationship with people and a company you can trust; a fully-branded image and a program without franchise or royalty fees; endorsement by the Chevron master brand; and access to Havoline, Delo, and Techron product lines. This program is comprehensive, competitive, costeffective and easy to implement. It features the resources, products, promotions, merchandising materials, brand support, credit card program, training, and warranty for an installer to run a successful quick lube. Chevron supports an active Havoline xpress lube Operator Council to provide input for further program growth and success in the marketplace. For more information, contact: Larry Russell, lrus@chevron.com n A Chevron Company Service Chevron U.S.A. Inc. All rights reserved. All trademarks are the property of Chevron Intellectual Property LLC or their respective owners. IN PERCENT OF OIL CHANGE-PLUS FACILITIES WERE FRANCHISED VERSUS 33 PERCENT IN CITGO PETROLEUM CORP. CITGO offers specially designed opportunities for operators who have an established name in the market but also want the backing and support of a national brand without a long term commitment and agreement. CITGO provides simple support platforms and signage along with technical support to continue to build your business. Your store and name our products, support and backing, for operators looking to completely brand their facility, CITGO also offers a complete signage package with a limited product agreement. Fast lube option: Limited agreements Territory: International, national Advantages of CITGO Lube plan: CITGO prides itself in customer service and focuses on providing business tools and flexibility to build long-term, profitable business relationships. For more information, contact: Todd McLemore, tmclemo@citgo.com n 2 NOLN EXPRESS OIL CHANGE Express Oil Change was founded in 1979 and is based in Birmingham Alabama. Territory: Regional; Southeast, Southwest, Midwest, Atlantic Coast, West to include Arizona Franchise fee: $35,000 Average start-up cost: $1,500,000 to $2,000,000 Royalty percentage required: 5% Individual qualifications: $350,000 liquid capital, $500,000 net worth. No previous automotive experience necessary. Advantages of Express Oil Change plan: Our combined buying power for all parts is significant, particularly for bulk oil, which is very impactful to the franchisees bottom lines. Franchisees pay the same price for bulk oil delivered to their store as all of our company owned stores, and we do not collect any sort of fee or rebate from franchisees purchases. Our business model includes full mechanical repair in additon to a 10-minute oil change, which provides a more convenient one stop shop for the customer, more reasons to visit by customers and overall higher sales volume of the stores. For more information, contact: Don Larose, dlarose@expressoil.com n EXXONMOBIL Discover Mobil 1 Lube Express one of the fastest growing quick lube chains in the United States and part of one of the largest quick lube networks in the world and benefit from an exciting business opportunity. In addition to leveraging Mobil 1, Mobil Super and Mobil Delvac brands, we offer hands-on product and sales training and a solid marketing program to provide you with all the tools needed to help increase tickets and profits. Fast lube option: License agreement, signage agreement Territory: International Average start-up cost: $15,000 - $20,000+ Individual qualifications: Two drive-through bays (pits preferred), the location not be within a three mile radius of another Mobil 1 Lube Express and a minimum of 30 cars per day for new operators and a minimum of 25 per day for existing operators. Advantages of ExxonMobil plan: Mobil 1 Lube Express can help independent installers grow their businesses by enabling them to leverage the power of Mobil 1 the world s leading synthetic motor oil brand as customers synthetic and premium lubricants needs increase. For more information, contact: Tinuke Adeyemi, Ask-Mobil ( ) n mobil1lubeexpress@exxonmobil.com

3 GO GREEN OIL CHANGE CENTER Fast lube option: Partnership Territory: International Franchise fee: $25,000 Average start-up cost: $100,000 with existing location. Individual qualifications: Experience, green conscience and a good track record in the quick lube industry. Advantages of Go Green Oil Change Center plan: Go Green Oil Change Center will offer a complete line of earth-friendly motor oils, with the main objective always being as green as possible. For more information, contact: Cole Hutcheson, or cole@gogreensmokelessoil.com GREASE MONKEY FRANCHISING The Grease Monkey concept was founded in 1978 and is based in Greenwood Village, Colorado. Grease Monkey currently has 308 locations. The company s plan is available in the United States, Columbia, Saudi Arabia and Mexico., license agreement, signage agreement Territory: International, national Franchise fee: $30,000 license fee - 15 year agreement, $20,000 for Veterans with valid DD214 Average start-up cost: $125,000-$140,000 for a three-bay center Royalty percentage required: 5% of gross sales Individual qualifications: $60,000-$70,000 liquid capital, $250,000 minimum net worth, 675 or higher credit score Advantages of Grease Monkey plan: Turnkey quick lube franchise opportunity with fast growth. For more information, contact: Jeff King, jking@greasemonkeyintl.com JIFFY LUBE INTERNATIONAL Jiffy Lube International, Inc., with more than 2,000 franchised service centers in North America, serves approximately 22 million customers annually. Territory: U.S. Franchise fee: $10,000 upon signing the Franchise Agreement, $25,000 on the 15th day of the first full month after the service center opens. Average start-up cost: $219,000 - $400,000, not including real estate Royalty percentage required: 0% of gross sales for the 1st 6-month period of operation, and 3% of gross sales thereafter (includes a 1% prompt pay discount) Individual qualifications: Net worth of $450,000 without personal residence, $150,000 liquid. Advantages of Jiffy Lube plan: Jiffy Lube offers a secure, proven business model and the support needed to help you grow your business, from national advertising and marketing support to a robust point-of-sale system and on-the-ground operational expertise. Additionally, Jiffy Lube International offers your employees a comprehensive training program. Jiffy Lube also offers customers premium quality lubricants including Pennzoil motor oils, the No. 1 Preferred Brand among DIFMs and the most trusted motor oil brand in America. For more information, contact: Jiffy Lube, jiffy-lube-development@shell.com NORTH AMERICAN LUBRICANTS North American Lubricants is a premier bulk lubricant supplier to the professional installed market. NAL was founded in 1999 with a focus on providing lube operators with high-quality, licensed products. Fast lube option: Signage agreement Average start-up cost: Varies by region Advantages of North American Lubricants plan: Our company was founded by quick lube operators, and we offer the fairest and most flexible programs in the industry. Our goal is to structure each plan to suit the individual needs of each customer. We offer a diverse product line, including conventional, synthetic, eco friendly, chemicals and a host of other premium products. For more information, contact: Brian Davis, bdavis@nalube.com OIL CAN HENRY S IN PERCENT OF OIL CHANGE-PLUS CUSTOMERS CHOSE PRODUCTS BASED ON BRAND LOYALTY. An innovative quick lube industry leader, Oil Can Henry s was founded in 1988 and is based in Tualatin, Oregon. Oil Can Henry s, which has built a strong brand as The One You Can Trust, has 90 centers. Franchise fee: $25,000 Average start-up cost: $237,000-$300,000 Royalty percentage required: 5.5% Individual qualifications: $300,000 liquid; $750,000 net worth without residence For more information, contact: Marsha Emerson, info@oilcanhenry.com January 2016 NOLN 3

4 OILSTOP, INC. OilStop, Inc. was founded in 1988 and is based in Petaluma, California. Territory: Regional; West Coast & Southwest Franchise fee: $35,000 Average start-up cost: $250,000 Royalty percentage required: 5% Individual qualifications: No experience preferred; net worth of $1M Advantages of OilStop plan: High level of guest satisfaction. High level of business management and control. Excellent service process and training materials. For more information, contact: Gary Woo, oilstopinc.com THE AVERAGE LENGTH OF EMPLOYMENT FOR FAST LUBE AND OIL CHANGE-PLUS MANAGERS IN 2015 WAS 8.4 YEARS. QUAKER STATE Quaker State offers a program that can help grow your business, the Quaker State We Feature Installer program. The We Feature Installer program gives you competitive pricing and signage support, as well as the backing of Quaker State technology and marketing programs to help you drive traffic, retain customers and increase your profitability. Fast lube option: Sales agreement, signage agreement Territory: U.S.; Regional focus Average start-up cost: Not applicable Individual qualifications: Flexible Advantages of We Feature program: The We Feature Installer program includes competitive pricing; signage lease funding; media/ promotional support; and award-winning training support, as well as the opportunity to leverage your association with Quaker State, one of the nation s top lubricant brands. For more information, contact: Quaker State Brand Management QUICKCHANGE QuickChange was founded in 1997 and is based in Cleveland, Ohio. Turnkey modular oil change units are also available. Territory: Regional Franchise fee: $25,000 Average start-up cost: $225,000 Royalty percentage required: 6% Individual qualifications: Ability to invest $250,000 and liquid assets of $75,000 Advantages of QuickChange plan: More than 20 years of experience in the fast lube business; 11 operating stores in the Cleveland, Ohioarea and two operating franchises. For more information, contact: Tim LaGanke, Jr., gank@quickchangeoil.com SERVICE PRO All Service Pro products are designed to provide professional installers with exceptional quality and performance, coupled with the expertise and the support of a national network of licensed and approved distributors. Service Pro is based in Montrose, Colorado. Fast lube option: License, signage agreement Territory: International, national Average start-up cost: To be determined with the AIOD member and operator. Individual qualifications: Determined by the local Service Pro distributor Advantages of Service Pro plan: Service Pro combines premium quality products, exceptional value and local distributor support to enable professional installers to operate more efficiently and profitably. Our plan is very open to the individual needs and circumstances of the operator because the AIOD member company who will be servicing the operator is key to determining the bulk of the agreement. This flexibility takes in all the necessary parts and pieces rather than a onesize-fits-all agreement like many other companies enforce. For more information, contact: Sherry Burr, sburr@newwestmarketing.com SHINN BUILDINGS Albert Shinn has been in the business of building glass carwash and quick lube structures and equipment since Our companies have the most value-packed lube and carwash buildings available anywhere. Fast lube option: Pre-engineered 4 NOLN

5 buildings and Equipment Territory: International, national, regional Franchise fee: N/A Average start-up cost: $95,000-$750,000 Royalty percentage required: N/A Individual qualifications: None Advantages of Shinn Buildings plan: Pre-engineered buildings have a lower cost, better quality and save time. For more information, contact: Albert Shinn, alshinn@aol.com operator. As an Express Care owner, you have access to an Express Care Advisor who can coach you and your team at your facility. The Advisor reviews your store performance, compares it against industry benchmarks, then assists you in establishing short-and long-term goals that grow your profitability. They help you pick from Express Care s selection or marketing and training tools in order to provide a tailored solution that achieves your goals. For more information, contact: Gayle McMillin, or lgmcmillin@ashland.com SINCLAIR DINO LUBE The Sinclair Dino Lube program was founded in Fast lube option: License Average start-up cost: None Individual qualifications: Operators interested in the Sinclair Dino Lube program should be highly motivated, sufficiently capitalized and have expertise in the fast lube industry. Advantages of Sinclair Dino Lube plan: The Sinclair Dino Lube program offers opportunities to independent quick lube operators looking for extra support from a trusted brand. Sinclair s wellrecognized and nearly 100-year-old brand and dinosaur trademarks add prestige and confidence to any location, but without the pressure of big name lube centers. Because we trust our independent operators to successfully maintain their business, we offer flexibility and limited support to Dino Lubes. The Dino Lube program does assist locations with POS materials, co-op advertising and connects every location to the vast, nationwide Sinclair credit card network. Enjoy a strong brand image combined with quality products at competitive pricing. For more information, contact: Tanner Bickley, VALVOLINE VALVOLINE EXPRESS CARE The Valvoline Express Care program now has over 330 stores open within the U.S. and Canada. Valvoline and Valvoline Express Care are based in Lexington, Kentucky. IN PERCENT OF OIL CHANGE-PLUS FACILITIES WERE INDEPENDENTLY OWNED VERSUS 67 PERCENT IN VALVOLINE INSTANT OIL CHANGE Valvoline Instant Oil Change was founded in 1986 and is based in Lexington, Kentucky. We currently have 929 locations in 41 states, with room to grow in many markets. Franchise fee: $30,000 initial franchise fee Average start-up cost: $134,925 to $1,961,000 depending on whether real property and equipment are purchased or leased. Royalty percentage required: 4-6% on a graduated scale Individual qualifications: Net worth: $600,000 - $1,000,000, $300,000 liquid Experience: Successful business person, already a multi-unit operator or independent quick lube operator Advantages of Valvoline Instant Oil Change plan: We are not just a franchisor; we are actually in the quick lube business. We own 280 plus quick lube locations, which enables us to test and refine programs in our own stores and share best practices with franchisees. For more information, contact: Gayle McMillin, lgmcmillin@ashland.com Fast lube option: Signage agreement Territory: International, U.S. and Canada Average start-up cost: Valvoline Express Care is an independent quick lube conversion program Individual qualifications: Current quick lube operator and/or retail business background. Business financial and credit reviews are required. Advantages of Valvoline Express Care plan: The Valvoline Express Care program provides a premium retail image, business consultation and the strength of the Valvoline brand to the professional quick lube 5 NOLN

6 Lube-Plus Programs In addition to the many great programs available to current and prospective fast lube operators, there is an increasing number of what we call, lube-plus programs. These are companies that offer a program that focuses on holistic car care. Below is a list of those companies that responded to our request for information. HONEST-1 AUTO CARE The Honest-1 brand is developed through superior training, support and a vast array of franchise offerings. We are the country s most trusted family of automotive maintenance and repair centers and currently have 60 operating locations in the U.S. We will sell 50 franchises in 2016 and open at least 20. Keep in mind that over 40 percent of our franchises own more than one location. Franchise fee: $35,000 for 1 territory, $70,000 for 3 and $100,000 for 5 Royalty percentage required: 6% Average start-up cost: $120,000 - $450,000 Individual qualifications: Business and management skills, liquid $150k - net worth $500k Advantages of Honest-1 Auto Care plan: Customer-centric model. Exceptional service and a commitment to honesty and integrity builds customer trust and loyal relationships. 100 percent eco-friendly. As environmental responsibility becomes even more important, Honest-1 is the clear choice for consumers who prefer green options. Recessionproof. There will always be a demand for quality automotive care, no matter what the economic situation. Proven franchise model and approved SBA lender for the past 8 years. Honest-1 franchise owners benefit from a finely tuned model that helps maximize potential and profit. Comprehensive training and support. From our intensive training and certification programs to efficient marketing campaigns, we ll support you with the tools and resources you need at every step. Attractive lifestyle. With sane business hours and steady business demands, Honest-1 franchise owners can create a lifestyle that works for them. For more information, contact: Tom Miller, tmiller@honest-1.com MEINEKE CAR CARE CENTERS Meineke provides the opportunity to work with an established and proven automotive franchise company that provides extensive automotive business training and field support. Meineke Car Care Centers have nearly 1,000 automotive franchises open worldwide. Territory: International, national, regional Franchise fee: $30,000 Average start-up cost: $225,000-$275,000 Royalty percentage required: 3-7% (based on gross revenue on identified categories) Individual qualifications: No automotive experience required. $250,000 net worth, 25-30% cash injection, credit score of 675 or better. Advantages of Meineke Car Care Centers plan: The automotive repair industry is booming and Meineke continues to be one of the most trusted and recognized brands in our industry. For more information, contact: Olivia Nota, olivia.nota@meineke.com meinekefranchise.com IN PERCENT OF OIL CHANGE-PLUS FACILITIES WERE INDEPENDENTLY OWNED VERSUS 67 PERCENT IN MILEX COMPLETE AUTO CARE Milex has been repairing vehicles for 40-plus years. We offer a superior business system and customized marketing and support services that provide entrepreneurs with the means to capture their share of the billions of dollars being spent annually on automotive repairs. At Milex, we believe that being honest in the work we do and with the people around us is the only way to do business. Franchise fee: $30,000 Average start-up cost: $167,899-$251,912 Royalty percentage required: 7% Individual qualifications: Net worth of $250,000-plus with $50,000 liquid capital available. Milex is looking for people who enjoy the automotive industry but experience isn t required. They must enjoy the retail environment and have good people skills with sales ability. They need to have a good work ethic, be skilled at team building and possess integrity and ethics. They have to know basic business skills, have a positive track record in other industries and be a self-starter that takes initiative with a positive attitude. Advantages of Milex Complete Auto Care plan: Proven management system, co-branding opportunities and excellent support system. Milex has been repairing vehicles for 40-plus years. We offer a superior business system and customized marketing and support services that provide entrepreneurs with the means to capture their share of the billions of dollars being spent annually on automotive repairs. At Milex, we believe that being honest in the work we do and with the people around us is the only way to do business. For more information, contact: Ben Reist, breist@moranbrands.com 6 NOLN

7 PRECISION TUNE AUTO CARE We are the recognized experts in automotive systems worldwide. What started as a small tune-up shop in Beaumont, Texas, in 1976 has grown to become a recognized global leader in the auto service industry providing diagnostics, scheduled maintenance and repairs. Our brand proposition can best be described as the successful combination of customer care and car care services., license agreement Territory: International, national Franchise fee: $25,000 (domestic) Royalty percentage required: 6-7.5% plus 1.5% advertising fee. Average start-up cost: $120,000-$225,600 Individual qualifications: $300,000 net worth; potential candidates should have strong business management background; automotive background helpful. Advantages of Precision Tune Auto Care plan: PTAC offers a proven operating system, effective brand leadership, turnkey marketing and advertising programs, a 24/7 Intranet community and world-class training and certifications. For more information, contact: Lee Oppenheim, ext. 211 lee.oppenheim@precisionac.com Company: Training Equipment Signage Advertising Site Selection Honest-1 Auto Care Three weeks at opening, manager training in Arizona, owner training in Arizona, yearly national training conference, three regional conferences and on-going training and support for the life of the franchise National vendors supply equiptment and additional training National vendors with sinage built to company specs In-house marketing, training and support Corporation helps with site selection and approval ONLINE ONLY Meineke AIOD Shinn Buildings LLC Ongoing and in-center franchise training, franchise owners are invited to bi-annual conventions and periodic training concerning car repair $30 million on a yearly basis for marketing and advertising projects, national and local ads on television, billboards, internet, and more Experienced real estate team helps identify a location that meets requirements. Opening logistics and support and identifying financing opportunities, designed to reduce the barriers of opening a quality automotive franchise location quickly Specific training all over the country as well as a huge assortment of training and sales materials on a portal website * * New inground pit system,turn key * Basic signage agreement, signage individually created to incorporate the operator s logo VIOC * Online and classroom training programs for management-level employees, technicians and customer service reps Up to $45,000 in interestfree financing for store signage * * Proven marketing tools designed to help develop a strong and loyal customer base, database marketing, digital marketing, fleet marketing, review management, plus advertising templates to support local store marketing efforts * * Development support includes market development site analysis tools, demographic modeling and customer mapping programs Express Oil Change & Tire Engineers Eight weeks of training for franchisee/ operator; two weeks for store crew * Planning the initial order and installing of store equipment Plans, specs and contacts for store signage Systems and tools to help franchisees market their business Search assistance for the best store site with the franchisee Credit Cards National vendors * * * * Branded credit card January 2016 NOLN 7

8 Customer Warranty Building Design and Construction Financial Assistance Plan In-house warranty program - Three years/36,000 miles Eighty percent of locations are reconstrruction and the rest are build to suit Financial assistance plan * * * * Warranty on all work vehicles * * Preengineered buildings One complete set of not for construction building plans for use in developing the location * * * The New Center Incentive Program offers franchisees a reward for opening a new Valvoline Instant Oil Change quick lube franchise. Depending on the number of oil changes the center will perform, VIOC will pay the franchisee an incentive payment ranging from $75,000 to $150,000 Financing * Third-party financing available * * VIOC is registered on the Small Business Administration s Franchise Registry, which speeds up and simplifies the processing of SBA loan applications. VIOC has relationships with various SBA lenders that can assist franchise financing needs Other SBA financing available for franchise purchase and build out Architectural store plans for free No financial assistance or subsidies provided Lenders are familiar with VIOC * * * * * * No response received. COMPANIES NOT LISTED DID NOT RESPOND. January 2016 NOLN 8