Detailed Estimates of Grease Monkey Franchise Costs Based on Item 7 (Estimated Initial Investment) of Grease Monkey’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $5,000 to $30,000
- The reduced Franchise Fee of $5,000 is for existing franchisees who are eligible to participate in the 2018 Incentive Program.
- The Initial Franchise Fee may be payable in two installments if Grease Monkey permits it.
2. Lease, Real Estate, and Improvements: $10,000 to $18,000
- A common arrangement utilized by franchisees is to secure a “build-to-suit” lease. In this type of a lease, the landlord pays some or all of the lease improvement costs. Your rent rate is based in part on those costs.
- If property is owned by a third party and leased to you, Grease Monkey estimates the rent for the first month to be in a range of $5,000 to $9,000 for a three-bay to six-bay unit and the security deposit is usually equal to one or two months’ rent.
- The chart shows one month’s rent and a security deposit equal to one month’s rent.
- The estimated cost to purchase a site for a Grease Monkey Center ranges from approximately $250,000 to $500,000 for land and $450,000 to $700,000 for a three-bay to six-bay building.
- You need a site of approximately 20,000 square feet, but smaller sites may be acceptable. Smaller sites may be used if there is adjoining common usage space such as a shopping center.
- The standard three-bay to six-bay building is approximately 71 feet by 32 feet and contains approximately 2,272 square feet on the main level of the building (the basement is not included in the 2,272 square foot estimate).
- Your building should have drive-through capability and an in-ground car service basement area unless Grease Monkey authorizes you to use a different configuration, such as “zip pits” and/or “auto-service pits” rather than an in-ground car service basement area.
3. Center Development Program/Other Development Services: $0 to $16,000
- If you desire assistance in finding a location and developing the site for your Grease Monkey Center, you can participate in Grease Monkey’s optional development program (“Development Program”). Under the Development Program, Grease Monkey’s designated supplier will assist you in locating and developing the site. The cost for this program ranges from $5,000 to $16,000.
- You may also elect to request development services from a developer, broker, or other supplier.
- The low range for this cost ($0) is if you elect not to participate in the Center Development Program or incur development costs from another supplier.
4. Equipment, Furniture, Tools, and Installation: $58,195 to $97,350
- This amount includes storage tanks.
- Assuming you can establish a creditworthiness acceptable to third parties, financing through third parties may be available.
- Certain of these prices may vary due to fluctuations in the price of steel.
5. Grand Opening: $10,000 to $15,000
- You must plan to spend a minimum of $10,000 on your Grand Opening, not including labor, cost of goods, and discounts or special offers.
- You will plan the Grand Opening with Grease Monkey or its designee, and it will include advertising and promotional campaigns to be conducted at or around the time your Center opens or within 30 days of opening, and will last for as long as four to six months.
- Within 30 days after the completion of your Grand Opening, you will submit a summary of your expenditures for the Grand Opening.
6. Initial Inventory: $14,500 to $25,000
- The initial inventory typically includes filters, bottle/bulk oil, plug kits, uniforms (towels, mats, and covers), window wash, automotive specifications software or publications, new store opening kit, and miscellaneous supplies.
7. Signs: $10,000 to $30,000
- All signs must meet Grease Monkey’s graphic standards and be approved in writing by it in advance of production. The estimated cost in the chart assumes channel letters on four sides of the building and one monument sign. The estimated cost in the chart may increase due to zoning or installation factors.
8. Initial Training – Travel & Lodging Expenses: $1,000 to $5,000
- Grease Monkey currently pays the reasonable travel and lodging expenses for up to two people to attend initial training up to a maximum total amount of $5,000. The estimated amount in the chart represents the travel and living expenses you would incur if you bring more than two people to Grease Monkey’s initial training program and for any travel and living expenses you incur above $5,000 for the initial two people attending.
- This amount will vary depending on the number of additional people attending, the length of your instruction, the distance you must travel, and the standard of living you desire while you attend the program.
9. Computer Hardware and Software: $5,000 to $19,500
- The estimated initial investment includes costs related to the purchase of computer hardware and software. Grease Monkey reserves the right to require that you purchase hardware and proprietary software from a vendor approved by it and which has been developed for use in the operation of Grease Monkey Centers.
10. Prepaid Expenses: $2,000 to $3,000
- This estimated amount includes utility deposits; fees for city, state, and local business licenses; a 25% deposit of the first year’s insurance premiums for liability, replacement property, garage-keepers liability, and umbrella insurance; and other prepaid expenses.
- If you are approved to open and operate a Monkey Shine Facility as part of your Grease Monkey Center, your estimated prepaid expenses may increase above the prepaid expense estimate in the chart.
11. Additional Funds for 3 Months: $40,000 to $80,000
- This amount includes estimated operating expenses you should expect to incur during the first three months of operations. It includes payroll costs (but not a draw or salary for you), taxes, utilities, advertising, rent, accounting and other professional fees, and other operational expenses that are not covered by sales revenue.
- You may have additional expenses starting your business. This is only an estimate. There is no guarantee that the amounts specified will be adequate or that additional investment will not be necessary during the first three months of operations or afterwards.
12. Total Estimated Initial Investment: $156,695 to $340,850