Grease Monkey Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$252,000

-

$821,000

LOCATIONS

351

Adam

Updated

April 11, 2024

Is

Grease Monkey

a franchise?

Yes,
Grease Monkey
currently
accepts
franchise
applications

Grease Monkey stands as one of the United States' largest independent franchisors of automotive oil change centers, extending its operations not only within the US but also reaching out to China, Mexico, Saudi Arabia, and Colombia.

The inception of this company dates back to 1978, and since then, it has dedicated itself to offering a comprehensive array of preventive vehicle maintenance services and products.

These encompass an extensive range, covering air conditioning, air filters, alignments, batteries, brakes, diagnostic services, check engine lights, diesel exhaust fluid, differential service, fuel and emission system cleaning, headlights, and power steering solutions.

Grease Monkey operates as a subsidiary of FullSpeed Automotive with its headquarters in Greenwood Village, Colorado.

With a rich history in franchising that commenced in 1979, Grease Monkey has expanded its footprint to include a remarkable global presence of over 475 locations, with approximately 340 centers situated across the United States.

How many

Grease Monkey

franchises

are there?

In 2022, there were
351
outlets in
the United
States, of which
201
are franchises, and
150
are corporate-owned.

What are the

Grease Monkey

franchise

fees?

Advertising fee

4.50%

Initial Franchise Fee ($10,000 - $39,900)The initial franchise fee for a Grease Monkey franchise ranges between $10,000 and $39,900. This fee is fully earned when paid and is not refundable.

For those who are Veterans or first responders, there's an option to pay a $15,000 deposit upon signing the Franchise Agreement, with the remainder due either within twelve months from the date of the Franchise Agreement or upon signing a letter of intent, lease, sublease, or purchase agreement for a site for the Center.

Royalty Fee (6% of Gross Revenues)Franchisees are required to pay an ongoing monthly royalty fee equal to 6% of their Gross Revenues.

Advertising Fee (4.5% of Gross Revenues)Franchisees are obligated to contribute to the marketing efforts. This includes:

  • National Materials Fund: Up to 1% of the total amount of Monthly Gross Revenues. This contribution is used for a system-wide National Materials Fund for promoting and building the Grease Monkey brand.
  • Local Advertising: A minimum average of 4% of the total amount of monthly Gross Revenues on local advertising that has been pre-approved by Grease Monkey.

The total advertising fees amount to 4.5% of Gross Revenues.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Grease Monkey

franchise?

It costs between
$252,000
and
$821,000
to start a
Grease Monkey
franchise.

There are two primary investment avenues. The estimated initial investment for a Single Greenfield Location ranges between $275,316 and $542,452, encompassing costs such as the initial franchise fee, lease and real estate expenses, equipment, and more.

On the other hand, for a Single Brownfield Location, the estimated initial investment lies between $187,316 and $688,452, covering similar expenditure categories. Detailed breakdowns of these costs are provided in the respective tables below.

Single Greenfield Location

Expenditure Type Cost Range Paid To
Initial Franchise Fee $10,000 - $39,900 Franchisor
Lease and Real Estate $36,000 - $64,000 Third Parties
Leasehold Improvements $0 - $50,000 Third Parties
Equipment, Furniture, Tools and Installation $110,000 - $190,400 Third Parties
Grand Opening Costs $10,000 Third Parties
Total Estimated Initial Investment $275,316 - $542,452

Single Brownfield Location

Expenditure Type Cost Range Paid To
Initial Franchise Fee $10,000 - $39,900 Franchisor
Lease and Real Estate $14,000 - $32,000 Third Parties
Leasehold Improvements $0 - $250,000 Third Parties
Equipment, Furniture, Tools and Installation $69,000 - $190,400 Third Parties
Grand Opening Costs $10,000 Third Parties
Total Estimated Initial Investment $187,316 - $688,452

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Grease Monkey

provide

training

to its

franchisees?

Yes,
Grease Monkey
provides
training

Grease Monkey, a renowned name in the automotive service industry, offers a comprehensive training program for its franchisees.

Training Overview:

  • Initial Training: Before opening a Grease Monkey Center, franchisees or their principal owners are required to undergo an Initial Training Program. This program is meticulously designed to cover both classroom and hands-on training. The classroom sessions span approximately three to four days, while the hands-on training extends for about five days. The content and length of the training can be adjusted based on the experience and skill level of the attendees.
  • Training Subjects: The Initial Training Program covers General Center Operations, Vendor Training, Sales/Presentation Techniques, Lubricants and Fluids, Certification Programs, Fleet Accounts Sales and Processing, Key Performance Indicators/Financial, and Management/Leadership Skills.
  • Ongoing Training: They also have an online training platform called "FullSpeed University" which offers various courses, some of which might be mandatory for certification.

Expenses and Other Details:

  • For those acquiring their first Grease Monkey Center, the company generously offers to reimburse reasonable travel and lodging expenses for up to two people attending the Initial Training Program. This reimbursement can go up to a total of $5,000. However, for those acquiring subsequent centers or purchasing from another franchisee, this reimbursement is not available.
  • While the company does not charge for the training of up to two people, franchisees are responsible for other costs incurred during the training, such as meals and other personal expenses.

Does

Grease Monkey

provides

territory

protection?

Franchisees of Grease Monkey are not granted an exclusive territory. They are, however, provided with a designated geographic area, referred to as the "Designated Area," in which a site will be located for their Grease Monkey Center and Monkey Shine Facility. This Designated Area is determined to select a proposed suitable location for the franchisee's Center and Facility.

It's important to note that this Designated Area does not grant any exclusive rights or imply any other territorial rights either before or after the execution of the Franchise Agreement. The area is typically designated by city, county, or other physical boundaries.

The franchisee does not have any option, right of first refusal, or similar contractual right to acquire additional Grease Monkey Centers, Monkey Shine Facilities, or Franchises in areas adjacent to their Franchised Location.

Can a

Grease Monkey

franchise

be run as

a passive

investment?

The Grease Monkey franchise model offers some flexibility in terms of management and daily operations. While franchisees or their designated "Principal Owner" are not obligated to participate personally in the direct operation of the center, it is recommended that they do so.

If the franchisee or the Principal Owner chooses not to be involved in the day-to-day operations, they must appoint a manager ("Manager") who has been approved by Grease Monkey to be responsible for the direct on-premises supervision of the center and facility.

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