Jiffy Lube franchised service centers provide oil change and lubrication services for cars and light trucks, as well as basic repair services and other similar or ancillary products and services. The company operates across the US and Canada and claims to serve approximately 27.5 million customers per year.
Launched in 1979 and with headquarters in Houston, Texas, Jiffy Lube is a wholly owned subsidiary of the Pennzoil-Quaker State Company, who in turn are a wholly owned subsidiary of global oil giant, Shell Petroleum. Famous for pioneering the ‘fast oil change’ industry by creating the world’s first drive-thru car care centers to provide professional mechanic services, they have offered franchise opportunities since inception.
Jiffy Lube at a glance:
If you have at least $250k in liquid cash and a net worth of $500k and you can meet the start-up costs that can range close to half a million dollars, then yes, you can start a Jiffy Lube franchise. The company says no automotive experience is necessary to operate a service center, although they do point out that their most successful franchisees have previous experience running a business. Jiffy Lube demands that the franchisee or their designated manager must take the necessary training and be responsible for managing the day to day operations of the business. This means this opportunity may be suitable for passive investment.
Typical of all businesses that require large quantities of technical equipment and purpose-fitted premises, the cost to start a Jiffy Lube franchise is not cheap. Expect to spend anywhere from $232,000 to $443,000 to get your service center firing on all cylinders. This cost ranks as moderate to high.
The initial franchise fee is $35,000. The fee may be waived for qualified military veterans at the company’s discretion.
After opening, you are required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $35,000 | $35,000 |
| Conversion fee | $17,500 | $17,500 |
| First month’s rent and security deposit | $16,000 | $17,500 |
| Travel and living expenses while training | $1,000 | $5,000 |
| Equipment signs and fixtures | $125,000 | $325,000 |
| Initial inventory | $20,000 | $30,000 |
| Opening marketing expenses | $15,000 | $20,000 |
| Insurance | $10,000 | $20,000 |
| Working capital – six months | $45,000 | $45,000 |
| Growth fund | $0 | $77,350 |
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Yes. Average annual gross income for a Jiffy Lube centers is $923,000, with a typical net profits of 10%, or $90,000. This is above the average net income for Canadian franchises (all franchised businesses) of $60,000 per year and ranks Jiffy Lube profitability as moderate.
Low. The failure rate for Jiffy Lube franchises is 1% in the first year, rising to 3% by year three.
Jiffy Lube claims to be the #1 national fast car care brand and with more than 27 million annual customers they are clearly very popular. However, despite a moderate average initial investment of $337,000 and net profits of $90,000 per year, it will still take almost 4 years to get your money back. Against this backdrop, there are more than 26 million registered cars and trucks in canada, and they all have to get their oil changed somewhere. So, if you like gasoline, oil and the sound of engines and you’re seeking a solid business opportunity with a low failure rate and high traffic flow, a Jiffy Lube service center could be the franchise for you.
Subject to any rights Jiffy Lube has already granted to other franchisees, the company will not permit another franchisee to open a Jiffy Lube service center within three miles of your service center, or establish or operate a Jiffy Lube service center, within three miles of your 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 this three-mile boundary. Franchisees have no right of first refusal or similar rights to acquire a new franchise outside of their existing three-mile boundary.
Jiffy Lube support for franchisees includes:
It begins with an application. Start the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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