Opening a Jiffy Lube Business
When it comes to getting some quick generalized service for your car, the name Jiffy Lube is sure to ring a bell with many people.
Because it has been around a while, many people are familiar with both the name and the service. With more and more gas stations that do mechanical work closing, this type of service will become much greater in demand in the next few years.
Jiffy Lube first opened in 1979, which was about the time when the convenience store began to strongly replace the gas stations that worked on cars. In the next ten years from now, Jiffy Lube believes that there will be a demand to service over 120 million cars per year, compared to the 80 million now. This is an added 50% more.
This reveals the great franchise business potential that you may have in the near future with this type of service center.
There are now about 2,000 Jiffy Lube franchises in the United States and about another 45 in Canada. The company is seeking to establish more service centers throughout the US and Canada. At this time, the Company does not own any stores, but has reduced them to zero and sold them to franchisees in the past few years.
Jiffy Lube has changed hands a couple of times, but its current owner is Shell Oil Co., which purchased it in 2002. There are 60 employees now working in the franchise department handling business matters. The company gives to a couple of charities and asks the franchisees to do the same.
Training for franchisees takes place at their headquarters in Houston and lasts from two to four weeks. Further training is available at the franchisee’s location, and additional training can be obtained, as well. The franchisor will also train the new employees at your service center when you open.
Getting into the business will involve a $35,000 franchise fee. The personal net worth requirement is $450,000, and it will cost between $214,000 and $273,000 to get your store up and running. Buildings already used for a similar purpose may be converted at a much lower cost – around $17,500. Agreement terms are for a 20-year period.
Jiffy Lube does allow for third-party financing for some of the start-up costs and equipment. Franchisees may buy more than one store, and they should also be willing to actively participate in its operation. Visit their franchise website for more information.