Jiffy Lube franchise

Hassle-free business loans to start your Jiffy Lube franchise.

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.

Jiffy Lube business details

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:

  • US stores: Approximately 2000
  • Required Investor net worth: $500,000
  • Required investor liquid cash: $250,000
  • Min. investment: $232,000
  • Max. investment: $443,000
  • Standard franchise term: 20 years

Can I start a Jiffy Lube franchise?

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.

How much does a Jiffy Lube franchise cost?

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:

  • Royalty fee: 0% of gross sales in first six months, then 3% to 5% per month onwards
  • POS support fund: $160 per month
  • Hardware support: $68 per month
  • Data delivery fee (optional): Depends on number of stores operated by the franchisee (currently $200 per month for 1 to 25 stores, $400 for 26 to 99 stores, or $850 for more than 99 stores) plus operational and maintenance expenses
  • Training expenses: $75 per person
  • Fleet processing charge: $1.25 per fleet invoice processed
  • National advertising fund: 1.5% of gross sales
  • Local advertising co-operative fund: 2.5% gross sales
  • Local advertising: 5% of gross sales
  • Minimum advertising requirement: 4% to 5% gross sales

Estimated key costs to open a Jiffy Lube franchise:

Key Costs GuideLowHigh
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
Working capital – six months$45,000$45,000
Growth fund$0$77,350

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Are Jiffy Lube franchises profitable?

Yes. Average annual gross income for US Jiffy Lube centers is $923,000, with a typical net profits of 10%, or $90,000. This is above the average net income for US franchises (all franchised businesses) of $60,000 per year and ranks Jiffy Lube profitability as moderate.

What is the failure rate for a Jiffy Lube franchise?

Low. The failure rate for Jiffy Lube franchises is 1% in the first year, rising to 3% by year three.

Why should you start a Jiffy Lube franchise?

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 278 million registered cars and trucks in the US, 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.

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What are the franchise territory policies for Jiffy Lube?

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.

What franchise resources does Jiffy Lube offer?

Jiffy Lube support for franchisees includes:

  • Training: Before opening their service center, franchisees or their designated manager must successfully complete the franchise training boot camp that is hosted in Houston, Texas. The content and duration of the boot camp can vary and is determined and updated by the company. All training must be completed within the number of days or months outlined under the relevant ‘certification timeline’. The training process is ongoing and requires the support and involvement of the franchisee, managers and employees. Recertification is required within two to five years of completion depending on the certification level.
  • Marketing support: Jiffy Lube provides promotional and other marketing support for their franchisees.
  • Third-party financing: Jiffy Lube provides limited financial support for investors seeking franchise funding. Alternatively you may be able to obtain more economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

What is the process for starting a Jiffy Lube franchise?

It begins with an application. Start the process here.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new car care business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://sharpsheets.io/blog/jiffy-lube-franchise-costs-profits/

Jiffy Lube franchise application: https://franchise.jiffylube.com/howitworks

Jiffy Lube: https://franchise.jiffylube.com/index

Failure rate: https://www.vettedbiz.com/franchises/jiffy-lube/

Average set-up cost: https://sharpsheets.io/blog/jiffy-lube-franchise-costs-profits/

Set-up costs: https://www.franchisedirect.com/automotivefranchises/jiffy-lube-franchise-07076/ufoc/

Cars on US roads: https://www.forbes.com/advisor/car-insurance/car-ownership-statistics/

Customers per year: https://www.jiffylube.com/news-and-press/jiffy-lube-scores-top-rank-in-fast-lube-industry-survey

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