In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Grease Monkey franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Grease Monkey franchise, based on Item 7 of the company’s 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Grease Monkey franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Grease Monkey outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Grease Monkey’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average and median number of vehicles serviced per day for the 161 franchised, 51 affiliate-owned, and 212 franchised and affiliate-owned (combined) Grease Monkey centers located in the United States that had been open at least one year as of December 31, 2017
- 2017 average vehicle count; ticket; net sales; cost of goods sold; salaries, wages, and benefits; gross profit; retail operating expenses; office and G&A expenses; and EBITDAR for the 117 franchised, 52 affiliate-owned, and 169 franchised and affiliate-owned (combined) Grease Monkey centers located in the United States that had been open at least one year as of December 31, 2017 and have provided complete profit and loss statements to the franchisor
Section I – Background Information
14 Things You Need to Know About the Grease Monkey Franchise
Parent Company Acquired by CenterOak Partners
1. In early November 2017, Grease Monkey International, LLC, doing business as FullSpeed Automotive, announced that it had been acquired by CenterOak Partners, LLC, a Dallas-based private equity firm with a focus on making control-oriented investments in middle-market companies. In addition to Grease Monkey, FullSpeed Automotive’s brands include SpeeDee, LubePro’s, and Monkey Shine car wash.
2. At the time of the announcement, CenterOak said that the current FullSpeed Automotive management team would continue to serve under the leadership of their president and CEO John B. Adams.
3. Chester Stokes, outgoing chairman of the board and, formerly, the primary shareholder of FullSpeed Automotive, said, “FullSpeed Automotive has grown tremendously in the last five years under the leadership of President and CEO John B. Adams and I am very proud of the team’s accomplishments. The company has proven that it is ready for even greater growth with the successful acquisition of SpeeDee Oil Change & Auto Service this past February.”
Appoints New Chief Operating Officer
4. At the beginning of March 2018, Grease Monkey International, LLC, doing business as FullSpeed Automotive, announced that Kevin Kormondy, longtime senior auto aftermarket industry executive, was appointed as president and chief operating officer of franchising for both Grease Monkey and SpeeDee.
5. Kormondy, who spent 20+ years with Big O Tires in various positions including executive vice president/COO, commented, “The Grease Monkey and SpeeDee Brands offer a terrific platform for growth. I am excited about the opportunity and eager to work with the Support Center Team and Franchisees to increase each brand’s annual unit volume and to drive franchisee profitability.”
6. John B. Adams, CEO of FullSpeed Automotive, added, “I have known Kevin for over 30 years and greatly admire his commitment to achieving “win-win” outcomes for the Company and Franchisees. This change will allow the FullSpeed Automotive leadership team to focus on business growth goals, and continue to live up to its Mission: “Driven to perform, so our customers and their vehicles can too!”
Opened First Store in Minnesota
7. In late August 2018, Grease Monkey announced that it would open its first Minnesota store in the town of Savage after Labor Day in September. The new Grease Monkey is the 285th location for the brand in the United States. The center is owned and operated by Curtis and Casey Romano of Savage, Minnesota.
8. The three-bay center was remodeled to offer more services that area drivers need, with greater comfort and lobby amenities for guests. Grease Monkey had a special pre-opening promotion, where customers had a chance to win free oil changes and car washes for one year.
9. Curtis Romano, owner of the Grease Monkey in Savage, said, “We’re excited to provide the communities of Burnsville, Savage and Prior Lake with convenient, quality vehicle preventive maintenance ‘Service Done Right, On Time Guaranteed’, and are looking forward to building upon our reputation for excellence among local residents.”
10. Grease Monkey was founded in 1978 in Denver, Colorado. The company is an automotive service center franchise that offers oil changes, preventative maintenance, and other car care services. Franchising started in 1979.
11. Grease Monkey was initially operating under the Grease Monkey Holding Corporation. In 2013, Grease Monkey Holding Corporation was merged with Grease Monkey International (GMI). That same year, Grease Monkey acquired the assets and franchise contracts of LubePro’s International, a 30-store chain of fast lubrication and automotive maintenance centers located in Illinois, Minnesota, Tennessee, Wisconsin, and South Africa.
12. Grease Monkey is owned by Grease Monkey International, which is doing business under the name FullSpeed Automotive. GMI has remained a privately-owned company and it says that this means that Grease Monkey can focus on properly helping customers instead of trying to sell a particular brand of oil.
13. In early November 2017, Grease Monkey International announced that it had been acquired by CenterOak Partners, LLC, a Dallas-based private equity firm. Today, Grease Monkey is still growing across the U.S. and is seeking franchisees around the world.
Entrepreneur’s Franchise 500
14. Grease Monkey ranked No. 278 on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Grease Monkey franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Grease Monkey’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 169
- Outlets at the End of the Year: 176
- Net Change: +7
- Outlets at the Start of the Year: 176
- Outlets at the End of the Year: 160
- Net Change: -16
- Outlets at the Start of the Year: 160
- Outlets at the End of the Year: 170
- Net Change: +10
- Outlets at the Start of the Year: 28
- Outlets at the End of the Year: 33
- Net Change: +4
- Outlets at the Start of the Year: 33
- Outlets at the End of the Year: 48
- Net Change: +15
- Outlets at the Start of the Year: 48
- Outlets at the End of the Year: 48
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
Part 1 – Average and Median Number of Vehicles Serviced (Centers Operated at Least One Year – Fiscal Year 2017)
- The following charts compile the number and percentage of franchised and affiliate-owned Centers’ average daily vehicle-count ranges and median daily vehicle-count ranges during January 1, 2017 to December 31, 2017.
- As of December 31, 2017, 212 franchised and affiliate-owned Centers located in the United States had been open at least one year.
- Grease Monkey determined the average and median vehicle count per day for each of these Centers and placed each Center in one of four categories.
- The vehicle counts include all vehicles entering a Grease Monkey Center for service.
- Approximately 95% of a Center’s customers purchase the Center’s full-service oil, filter, and lubrication. Customers also purchase air filters, wiper blades, transmission, radiator, differential, and other services.
A. Franchised and Affiliate-Owned Centers (212 Centers)
- Number of Vehicles Serviced: 1,938,085
Center Average Per Day: 20 or Less