Franchise Deep Dive: Jiffy Lube Franchise Costs, Fees, Profit and Data

LAST UPDATED: 12/2022

FRANCHISE WEBSITE: https://franchise.jiffylube.com/index

NUMBER OF LOCATIONS: 2,000+

REPORTED COST TO GET IN: $232,000–442,650

REPORTED ROI (Item 19): $871,764.17 (System Median)

Jiffy Lube® is a leading provider of automotive preventive maintenance. With a national footprint of more than 2,000 franchisee-owned service centers across the United States, the company offers a range of services from oil changes and tire rotations–and everything in between.

Jiffy Lube is said to have pioneered the fast oil change industry more than 35 years ago. And today, its highly-trained technicians serve over 20 million customers every year. 

How Many Jiffy Lube Locations Are There?

The Jiffy Lube network is 100% franchise owned and operated. The brand has over 2,000 service centers around the United States with a nationwide database that keeps customers’ service records on file so they can have “a quick, consistent and quality experience every time,” says the company. 

Existing Jiffy Lube stores are protected by a three-mile non-compete ring. As long as a prospective location is outside of that three-mile radius, the area is open for new development discussion.

In addition to the United States, Jiffy Lube also has service centers in Canada, and the brand says it is “always open to discussions regarding expansion.”

What Is the Business Model?

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

Jiffy Lube uses a signature four-step plan when performing an oil change: Change, Inspect, Check/Fill, and Clean. Customers often opt to have other areas of their car checked out while having their oil serviced.

A minimum of four employees are required during operating hours. Additionally, the service center is required to have an ASE A5 or Jiffy Lube University® A5 certified technician on staff.

How Much Can Jiffy Lube Franchise Owners Make? 

According to the brand’s Item 19, the following data includes sales of franchised stores for the full 2021 calendar year. All franchised service centers which were open for 12 full months in 2021 are included in the data below.

Annual Sales (2021)

• First Quartile (473 stores) 
  • Low: $218,596.24
  • Average: $526,895.31
  • High: $659,681.79
  • Median: $542,589.31
  • Number/Percent Above Average: 261/55.2%
• Second Quartile (473 stores)
  • Low: $660,025.98
  • Average: $766,934.86
  • High: $870,466.22
  • Median: $770,125.69
  • Number/Percent Above Average: 246/52%
• Third Quartile (473 stores) 
  • Low: $873,062.12
  • Average: $1,006,711.47
  • High: $1,165,600.09
  • Median: $1,000,689.20
  • Number/Percent Above Average: 228/48.2%
• Fourth Quartile (473 stores)
  • Low: $1,166,018.65
  • Average: $1,546,159.56
  • High: $3,089,902.27
  • Median: $1,451,441.49
  • Number/Percent Above Average: 182/38.5%
• System (1,892 stores)
  • Low: $218,596.24
  • Average: $961,675.30
  • High: $3,089,902.27
  • Median: $871,764.17
  • Number/Percent Above Average: 770/40.7%

How Much Does It Cost To Open a Jiffy Lube? 

Qualified candidates should possess a minimum net worth of $500k and a minimum liquidity of $250k. Costs to open a Jiffy Lube location include: 

Initial Investments

• Initial Franchise Fee: $35,000
• Conversion Fee: $17,500
• First Month’s Rent and Security Deposit: $16,000–$17,500
• Equipment, Signs and Fixtures: $125,000–$325,000
• Initial Inventory: $20,000–$30,000
• Opening Marketing Expense: $15,000–$20,000
• Insurance: $10,000–$20,000
• Training Expenses Incurred By Franchisee or Employees: $1,000–$5,000
• Additional Funds (Working Capital) - 6 Months: $45,000
• Growth Funding: $77,350
• Estimated Total: $232,000–442,650

Other Fees

• Royalty
  • For new-to-system locations: 
    • 0% of gross sales for the first 6-month period of operation and 2.4% for the 7th month of operation onward.
  • In addition, the monthly royalty fee will be reduced by 1% on all tire rubber revenue for Jiffy Lube Multicare service centers.
• POS Support Charge: The then-current fee, which will not exceed $160 per month per POS System installed, unless approved by TSAB or required under contract with Jiffy Lube’s POS System support provider that has been approved by the franchisor and the TSAB.
• Hardware Support: Currently $68 per month (prices are subject to change on 30 days’ notice upon the approval of TSAB).
• Training Expenses: Currently, $75 per person, depending on the type of training elected.
• Fleet Processing Charge: An amount the franchisor may specify at times during the term of the Franchise Agreement. Currently, $1.25 per national fleet invoice is billed by the franchisor. 
• Auto Integrate Processing Charge: Any amount the franchisor may specify at times during the term of the Franchise Agreement. Currently, $0.065 per fleet invoice is automatically approved by the Auto Integrate fleet invoice verification program. 
• Jiffy Lube Multicare National Warranty Program: $7 a month
• Audit Expenses: Expenses the franchisor incurs in the course of auditing the franchisee’s books or financial records.
• Service Charges: The lesser of (a) 2% per month or (b) the highest rate permitted on all past due amounts.
• Transfer Fee: $3,500 plus the franchisor’s actual expenses.
• Renewal Fee: $10,000 for the renewal term, subject to adjustment using the Consumer Price Index. 
• Relocation Fee: $7,500
• National Advertising Fund: $1.5% of gross sales
• Local/Cooperative Advertising: 2.5% of gross sales
• Local Advertising: 5% of gross sales
• Min. Advertising: 4% of gross sales
• BTS Development Reimbursement: $25,000What Is the Franchise Fee for Jiffy Lube?

The franchise fee for Wingstop is $35,000.

Who Is the Leadership of Jiffy Lube?

• Edward Hymes, President
• Ed Norris, VP of Operations

What Helpful Articles Can I Read To Learn More?

• Jiffy Lube Franchise Costs & Fees 
• What does it take to be a Jiffy Lube® Franchisee?
• FDD Talk: Jiffy Lube Franchise Costs, Fees, Average Revenues and/or Profits
• How to Succeed as a Multi-Unit Franchisee: Steve Isom, Jiffy Lube

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