Valvoline Instant Oil Change Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$205,000

-

$396,000

LOCATIONS

1573

Adam

Updated

April 11, 2024

Is

Valvoline Instant Oil Change

a franchise?

Yes,
Valvoline Instant Oil Change
currently
accepts
franchise
applications

Valvoline Instant Oil Change is a prominent American chain of preventive maintenance service centers, with its headquarters situated in Lexington, Kentucky.

Founded in 1986 by the Valvoline Company, Valvoline Instant Oil Change specializes in operating quick-service engine oil change facilities. In addition to oil changes, they provide services such as chassis lubrication, routine maintenance checks, and various other automotive services.

The Valvoline Instant Oil Change franchise opened up to franchising opportunities in 1988. As of the latest available data, it has successfully expanded its footprint to encompass 1,573 locations worldwide, including 817 units operating within the United States.

How many

Valvoline Instant Oil Change

franchises

are there?

In 2022, there were
1573
outlets in
the United
States, of which
817
are franchises, and
756
are corporate-owned.

What are the

Valvoline Instant Oil Change

franchise

fees?

Advertising fee

3.00%

Initial Franchise Fee ($30,000)

You must pay VIOCF a license fee of $30,000 for your first Center. Half of the license fee is paid upon signing the License Agreement, and the other half is paid on the date your first royalty payment to VIOCF is due. If you open a second Center, the fee varies depending on whether it's a new construction or a conversion of a non-Valvoline Instant Oil Change facility.

Royalty Fee (6% of Adjusted Gross Revenue)

Franchisees are required to pay a monthly royalty fee equal to 6% of the Adjusted Gross Revenue.

Advertising Fee (3% of Adjusted Gross Revenue )Franchisees are obligated to contribute 2% of Adjusted Gross Revenue towards the General System Fund until the cap amount has been reached. Additionally, franchisees must spend at least 3% of their Adjusted Gross Revenue on local advertising. VIOCF has the right to require franchisees to contribute this amount to an advertising fund or cooperative.

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

Valvoline Instant Oil Change

franchise?

It costs between
$205,000
and
$396,000
to start a
Valvoline Instant Oil Change
franchise.

For individuals or entities considering a Valvoline Instant Oil Change franchise, the estimated initial investment varies based on certain choices. If you opt to lease the real property and signage, the estimated initial investment ranges between $204,750 to $395,550. This encompasses various costs, including the development fee, land and improvements for three months, grand opening expenses, and more.

However, if you decide to purchase the real property and signage, the estimated initial investment significantly increases, ranging from $1,810,750 to $3,270,550. This higher range accounts for the costs of land and improvements, among other expenditures.

A detailed breakdown of these costs is provided in the table below:

Type of Expenditure Cost Range Paid To
Development Fee $30,000 VIOCF
Land and Improvements Purchased $1,550,000 to $2,750,000 Varies
Land and Improvements Leased for Three Months Varies Varies
Grand Opening Expenses and Advertising $33,000 to $58,500 Various
Training $7,500 to $10,000 Suppliers of transportation, food, lodging, and wages
Security Deposits $5,000 to $10,000 Utilities, Landlord
Insurance $12,000 to $17,000 Insurers
Start-up Supplies $22,000 to $30,000 Third-party suppliers
Initial Inventory of VALVOLINE® Products $28,750 to $62,050 VIOCF, VIOCF’s affiliates or other vendors
Equipment and Service Systems $8,500 to $80,000 VIOCF, VIOCF’s affiliates or other vendors
Signage Leased for Three Months $1,000 to $1,500 VIOCF or its affiliates or other suppliers
Signage Purchased $90,000 to $185,000 VIOCF, VIOCF affiliate or designated supplier
Point-of-Sale System $6,500 to $20,000 VIOCF, VIOCF affiliate or designated supplier
Additional Funds for Three Months $50,000 to $65,000 Various
TOTAL $204,750 to $395,550 (If Real Property Leased and Signage Leased)
TOTAL $1,810,750 to $3,270,550 (If Real Property Purchased and Signage Purchased)

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

Valvoline Instant Oil Change

provide

training

to its

franchisees?

Yes,
Valvoline Instant Oil Change
provides
training

Valvoline Instant Oil Change (VIOCF) provides a detailed and structured training program for franchisees and some of their employees, covering various aspects of the business. The training program includes several segments:

  1. Real Estate & Development Training: This segment focuses on site selection criteria, the real estate diligence process, and store prototype plan review. It includes 1 day of orientation and 1-3 days of site visits.
  2. Administration Training: This program provides business and center management training, covering human resources, compensation, fleets, marketing, legal, environmental health & safety (EH&S), credit, security, training, point of sale, and pricing. It includes approximately 3 days of classroom instruction and 3 days of on-the-job training.
  3. Operations Training: Intended for the initial manager, this training focuses on center management and includes about 5 days of classroom instruction and 20 days of on-the-job training. It is required before the center opens.
  4. Center Opening Training: Designed to assist in the opening of a new center, this training includes operational training and assistance, held at the franchisee's center about 1 week before opening.
  5. Follow-Up Training: Conducted 3-6 months after the first center opens, this training is a review and reinforcement of operational practices.

Does

Valvoline Instant Oil Change

provides

territory

protection?

Valvoline Instant Oil Change franchisees are granted the right to operate within a designated territory. This territory is defined as the area within a two-mile radius of the most central point of the approved location.

During the term of the License Agreement, Valvoline Instant Oil Change (VIOCF) commits not to operate or license other individuals to operate any center within this designated territory that uses the System and the Proprietary Marks.

However, it's worth noting that franchisees do not receive an exclusive territory. This means they may face competition from other franchisees, outlets owned by VIOCF, or other distribution channels or competitive brands controlled by VIOCF.

Can a

Valvoline Instant Oil Change

franchise

be run as

a passive

investment?

The Valvoline Instant Oil Change franchise model emphasizes the importance of direct involvement in the management and operation of the franchised unit. If the franchisee is a corporation, limited liability company, or partnership, they must designate an individual as the "Designated Owner" to manage the Franchised Unit.

This Designated Owner is required to be actively involved in the on-premises management and operation of the Franchised Unit.

Furthermore, if the Designated Owner is responsible for supervising the day-to-day operations, the franchisor will communicate directly with them regarding day-to-day operational matters.

In essence, the Valvoline Instant Oil Change franchise does not support a purely passive investment approach. Active involvement, either directly by the franchisee or through the designated Designated Owner, is crucial for the successful operation of the franchise, ensuring that the brand's standards and customer expectations are consistently met.

Related Posts