Jiffy Lube Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$232,000

-

$443,000

LOCATIONS

2069

Adam

Updated

April 11, 2024

Is

Jiffy Lube

a franchise?

Yes,
Jiffy Lube
currently
accepts
franchise
applications

Jiffy Lube is an American automotive service chain specializing in oil changes, with its headquarters located in Houston, Texas.

The inception of this renowned chain can be traced back to 1979 when W. James Hindman acquired all seven existing Jiffy Lube franchises from Edwin H. Washburn, subsequently establishing Jiffy Lube International.

Across its network of franchises, Jiffy Lube offers a comprehensive range of automotive services. These include oil change and lubrication services tailored for cars and light trucks, maintenance of air conditioning systems, brake servicing, cooling system maintenance, engine and fuel system cleaning, emissions testing and inspections, tire changes, and much more.

Today, Jiffy Lube operates as an indirect, wholly owned subsidiary of Shell Oil Company. Since commencing its franchising journey in 1979, the brand has expanded globally and now boasts over 2,100 locations worldwide.

How many

Jiffy Lube

franchises

are there?

In 2022, there were
2069
outlets in
the United
States, of which
1710
are franchises, and
359
are corporate-owned.

What are the

Jiffy Lube

franchise

fees?

Royalty fee

3% to 5%

Advertising fee

4% to 5%

Initial Franchise Fee ($35,000)

If the Franchised Center is a new Service Center, meaning that it has not been in continuous operation for at least the previous twelve-month period as a Jiffy Lube Service Center and is not otherwise a Converted or Relocated Center, the franchisee will pay Franchisor a franchise fee of $35,000.

Of this amount, $10,000 is earned by Franchisor and due upon the franchisee’s execution of the Agreement. The remaining $25,000 is earned by Franchisor and due on the 15th day of the month after the Franchised Center opens for business under the trade name "Jiffy Lube".

Royalty Fee (4-5%)

Franchisees will pay Franchisor a monthly royalty. If the Franchised Center is a new Jiffy Lube location, during the first six months in which the Franchised Center is open for business, the franchisee will pay no monthly royalty. Thereafter, the franchisee will pay a monthly royalty of four percent (4%) of Gross Sales.

If the Franchised Center is an existing Jiffy Lube location, then the franchisee will pay Franchisor a monthly royalty equal to four percent (4%) of the Gross Sales at the Franchised Center. However, in some cases, the royalty can be five percent (5%) of the "Gross Sales" at the Franchised Center.

Advertising Fee (4-5% of Gross Sales)

Franchisees are required to spend on local advertising compliant with the given guidelines an amount equal to two and one-half percent (2.5%) of the Gross Sales of the Franchised Center. This local advertising expenditure requirement can be up to 5% of Gross Sales under certain conditions.

Additionally, franchisees must contribute 1.5% of the Gross Sales of the Franchised Center to a National Advertising Fund (NAF), which is administered to enhance the goodwill and public image of the brand and system through advertising and sponsorships.

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

Jiffy Lube

franchise?

It costs between
$232,000
and
$443,000
to start a
Jiffy Lube
franchise.
Expenditure Type Cost Range Paid To
Initial Franchise Fee $0 - $35,000 Jiffy Lube
Conversion Fee $17,500 Jiffy Lube
First month’s rent and security deposit $16,000 to $40,000 Landlord
Equipment, signs and fixtures $125,000 to $325,000 Vendors, Landlord
Initial inventory $20,000 to $30,000 Vendors
Opening Marketing Expense $15,000 to $20,000 Advertising agencies, media, other vendors
Insurance $10,000 to $20,000 Insurance carriers
Training expenses incurred by you or your employees $1,000 to $5,000 Airlines, hotels, etc.
Additional funds (working capital) -- 6 months $45,000 Employees, suppliers, utilities, government agencies, etc.
Total Expenditure $207,000 to $500,000 -
Growth Funding $0 to $77,350 To Franchisee
Net Total $232,000 to $442,650 -

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

Jiffy Lube

provide

training

to its

franchisees?

Yes,
Jiffy Lube
provides
training

Jiffy Lube offers an operations training course specifically designed for Service Center managers. The content and duration of this course are determined by the franchisor. This training is conducted in venues selected by Jiffy Lube.

While the franchisor covers the costs for instructors, classroom facilities, and training manuals, there are certain scenarios where the franchisee might need to chip in. For instance, if the training is held outside the area of Jiffy Lube's main business location, the franchisee might be required to pay a share of the cost of renting classroom space and the travel expenses of the instructors.

Furthermore, franchisees are responsible for the salaries or wages of their employees attending this training. They also need to cover transportation, meals, lodging, and incidental personal expenses during the training period.

The training process at Jiffy Lube is quite comprehensive. Beyond the operations training, there's a web-based training component, which, upon completion, requires a passing test score. There's also on-the-job training (OJT) for skill-building and practice.

Jiffy Lube also offers Leadership Training certification, which is achieved by completing instructor-led training courses. There are multiple options for this, including virtual instructor-led training. The cost for this training varies, with some courses having a tuition fee.

Does

Jiffy Lube

provides

territory

protection?

Franchisees do not receive an exclusive territory. Before entering into a Franchise Agreement, an area is negotiated within which the franchisee may locate a site for their service center. This area is described in the New Construction Addendum to the Franchise Agreement.

If the franchisee does not locate a site or build a service center within the specified time, the franchisor can terminate the agreement and sell a franchise in that area to another prospective franchisee.

Once a specific site is approved and committed to within the defined area, that site will be identified in the Rider to the Franchise Agreement. Other franchisees can then develop a service center at any location in that area, including locations previously considered by the franchisee.

This means that while there is a negotiated area for the franchisee to operate, it does not guarantee exclusivity, and other franchisees can potentially operate within the same area.

Can a

Jiffy Lube

franchise

be run as

a passive

investment?

The franchise agreement stipulates that franchisees must be actively involved in the day-to-day operations of their business. This means that the franchise cannot be treated as a passive investment.

If you're thinking of investing but prefer a hands-off approach, this might not be the ideal opportunity for you. Always ensure you're fully aware of all obligations before diving into any franchise agreement.

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