If you seek profitable and affordable business opportunities, then the lubricants industry holds a promising future in the U.S market, valued at USD 19.18 billion in 2019. Anticipations are that the CAGR will expand by 3.1% from 2020 to 2027. Many companies like SpeeDee, Jiffy Lube, Luby Dudes, Spiffy Green, Grease Monkey, Midas, Valvoline Instant Oil Change, etc., offer franchises in this niche.

Review this blog post if you're eager to know more about Jiffy Lube franchising. This informative article covers the cost of starting a franchise, a franchise fee, liquid capital operating costs, and more as per their FDD. You'll also get hints on what other profitable franchises are available near you if this one's not right for your needs.

Jiffy Lube Business Highlights

• Jiffy Lube International, Inc. is a chain of oil change shops specializing in automotive oil changes. It was founded in Utah, United States, in 1971.
• Since 2002, it has been an indirect wholly-owned subsidiary of Shell oil company, whose headquarters is in Houston, Texas.
• Jiffy Lube service centers also offer other services, some of which are compulsory, and some are approved but optional. They offer oil change and lubrication services for cars and light trucks. They also offer light repair services and other similar ancillary products.
• In 1987, Jiffy Lube went public, and by 1989, Jiffy Lube had opened 1,019 franchises and company stores. Jiffy Lube became a subsidiary of Pennzoil in 1991.
• Over 2,000 Jiffy Lube franchises in 49 states, with 183 designated market areas for potential growth.
• Your initial investment for the Jiffy Lube franchise will range from $207,000 to $422,650.

Jiffy Lube Franchise Cost

The initial investment to start a Jiffy Lube franchise is:

Jiffy Lube's franchise fee is up to $35,000, with a total initial investment ranging from $207,000 to $422,650. There are also some other expenses and fees that Jiffy Lube charges its franchise. For instance,

• Royalty Fees: 4-3% of gross sales after the first six months of operation
• POS Support Charge: $160 per month per POS System installed
• National Advertising Fund Contributions: 1.5% of gross sales.
• Local Advertising: 5% of Gross Sales; 4% if the franchisee signs the Product Supply Franchise Agreement
• Minimum Advertising Requirement: 4% of gross sales.
• BTS Development Reimbursement: $25,000

Buying a franchise can be a big decision. Before leaping, you should know your net worth and assess whether it's a good investment. Franchise financing is also available for those with lower credit ratings or who don't want to spend their money upfront.

Reviews From Existing Jiffy Lube Franchise Owners

Like every other franchise, Jiffy lube also has mixed reviews. Some existing franchise owners are very happy with it, and some are unhappy franchise owners making fewer profits.

Jiffy Lube franchise owner South Lubes Inc. has sold its 57 stores, indicating that these franchises must not have been that profitable; otherwise, nobody sells 57 franchises.

An existing franchise owner SCOTT TRENNER, S.T. LUBE, says, "My business is still growing, and my car count is growing. It's been successful and perfect for me."

“There is a need for Jiffy Lube to improve the customer experience, which will require leadership and commitment from the franchise owners and corporate management.”

Available Franchise Locations

Jiffy Lube has over 2000 stores in America and Canada. They are actively looking for new franchisees' development and growth. They invite discussion as long as your desired location is outside the 3-mile radius of an existing Jiffy Lube store. A 3-mile non-compete ring protects existing Jiffy Lube stores' interest.

How To Buy A Jiffy Lube Franchise

You can either acquire a single unit or multiple unit franchise. For a new franchisee, we recommend purchasing a single unit first.

Is Buying Jiffy Lube Franchise A Good Decision?

Buying Franchises can be tricky. Every franchise has advantages and disadvantages, so thorough research is essential. Many franchisors try to hide their disadvantages, which is why we recommend hiring an experienced consultant to help you through the process.

The pros and cons of Jiffy Lube shared below can help you make a rational business decision.

Advantages Of Jiffy Lube

• It is a leading lubricant company with over 2000 stores in America and Canada.
• As a Jiffy franchisee, you will have access to various vendors and negotiated pricing.
• You will benefit from national-level marketing and a wide range of marketing assets and tools to leverage for local store marketing.
• You will benefit from Jiffy Lube's offers, such as rent deferment and waived royalties.

Disadvantages of Jiffy Lube Franchise

• There is wariness in people because of the past conduct of its franchises.
• Many of California's Jiffy Lube franchises were fined heavily for various scams they had pulled on the customers.
• Franchisees' incompetence and the company's lack of training and control have damaged the company's franchise and business model, hurting both the business of franchises across the nation and the company's name.
• Buying jiffy lube can be very expensive, and the returns are also not that good.

Conclusion

Jiffy Lube is a leading lubricant franchise in America with over 2000 stores. But this does not make this franchise a profitable one as it has a lousy reputation because of scams some franchisees had pulled on the customers.

Frequently Asked Questions

Q.What is the length of the initial franchise term?

The Jiffy Lube franchise agreement is valid for 20 years, with a 10-year renewal option.

Q.Do Jiffy Lube offer any franchise financing options?

They offer financial assistance programs that provide upfront funding to help offset costs. For example, if you are constructing a new Jiffy Lube® location, you could be eligible to receive a grant of approximately $77,350 to offset initial setting up costs.

Q.Do Jiffy Lube gives protected territory?

Yes, Jiffy Lube provides a 3-mile radius of protected territory. In that 3 miles, no other Jiffy Lube franchise can be opened until the franchisee agrees.

Q. Are all the Jiffy Lube franchises expected to offer Jiffy Lube Multicare services?

A Jiffy Lube Multicare service must be offered at all new developments. The only anomaly would be an existing service center conversion that does not fulfill the requirements of a Jiffy Lube Multicare service center and has a strong enough business case.