This annual list of the best automotive oil change franchises was revised and updated on January 6, 2022.
Servicing cars is big business, both in the US and globally. With growing numbers of people driving, and businesses reliant on cars and trucks for transport, there’s always business to be had. The number of vehicles in use has risen in recent decades, with over 280 million registered vehicles in the US, and every one of them needs its oil changed to avoid costly wear on the engine.
While most auto repair and maintenance is carried out by general purpose businesses covering everything a car might need, oil change has remained as a separate sub-sector of this industry. Oil change businesses, also referred to as fast-lube, let customers get this one part of regular car maintenance done quickly and with the minimum of fuss. There are over 25,000 businesses in the American oil change industry, employing over 76,000 people, all of them working toward providing quick, easy oil changes.
These are often drive-thru businesses and will usually provide an oil change without the need for an appointment. This helps to keep the process quick and easy for customers, and so keeps business flowing. In 2019, there were over 7,000 oil change and lubrication shops in the US, with average sales of over $900,000 per year.
The US oil change market was worth over $8 billion in 2019, with annualized growth of 1.3% from 2016 to 2021. One of the drivers for this growth was declining oil prices, which encouraged people to drive their own cars rather than use public transport or share rides. This led to greater vehicle use and so more need for oil changes.
But the industry also benefited from a change in attitudes to oil changes. As recently as the mid-1990s, 65% of American drivers changed their own oil. This was still regarded as something you did for yourself, a holdover from the days when cars were simpler and much more maintenance took place at home.
Over the past twenty-five years, attitudes have shifted. Home maintenance is the exception, not the rule. Drivers want to avoid the hassle not just of the oil change itself but of disposing of the used oil, which can be a dangerous pollutant. Oil change shops take away all of this hassle. You can drive in, get your oil changed, and drive away at the end, without a need to provide your own time, tools, or expertise.
The frequent use of a drive-thru business model meant that oil change shops could easily stay open during the COVID-19 pandemic, as customers could have their oil changed without any close human contact. Businesses moved toward this model, more frequently using drive-thru and drop-off oil change services to reduce the risk of infection, and expenses to adjust to the pandemic were small compared with other industries.
Despite this, the slowdown in travel and caution about non-essential contact led to a significant drop in the industry’s earnings. Revenues for oil change businesses across the US fell by nearly $2 billion in 2020, to around $6.5 billion. Predictions that the industry would return to pre-pandemic levels within a year proved overly optimistic. It only reached $7 billion in revenues in 2021, and though it’s expected to grow by a further 6% in 2022, this will still leave the industry nearly a billion dollars behind where it was three years before.
The state of the economy, and its effect on disposable income, is clearly the key driver here. Some repairs and maintenance can be postponed when money is short, and oil changes are among them. With so many jobs lost, prices rising, and economic uncertainty, people are making savings where they can, and for many that means fewer oil changes. The fact that people are traveling less, both for work and for leisure, adds to this. If a car owner is working from home and has reduced leisure activities then the car might be sat idle most of the time, and so there seems little need for an oil change.
That said, cars are such an essential part of American life that maintenance work can only be delayed so long, and the longer an oil change is put off, the more likely that the engine will suffer costly damage. 64.5% of auto mechanic customers are individual households, many of whom are reliant on their cars to get to work, shop, carry kids to school, and engage in leisure activities. As they return to regular driving, delayed oil changes will be carried out and normal maintenance routines restored. Vaccinations, changing restrictions, and economic growth will all help the oil change industry to reach for its old revenues; this change is just taking longer than expected.
Improvements in how cars are built have created a more long-term challenge for the industry. Many cars can last far longer than before without needing an oil change. This means less frequent visits to lube shops. While old cars are staying on the road for longer, keeping up the work for a while, this can’t prop the industry up forever. The need for these businesses remains, but their core work may see a decline.
To counter this and provide growth opportunities, lube chains have added a lot of extra service options to their agenda, including fluid drain and flushes, wiper blades, taillights, turn signals, tire rotations, differentials, and more. They are becoming more useful to customers, and less distinct from auto repair and maintenance shops, while still avoiding the parts of that job involving a wide range of experience and expertise or specialist supply chains. By catering to the lower effort end of the auto maintenance market, they provide a less complex business and a more accessible customer service.
This limits the range of skills that a franchise needs to provide staff for, making this an easier way into auto work than running a repair shop. Even when oil change shops expand their range of services, they generally steer clear of mechanical and electronic repairs and maintenance, as well as body, paint, interior, and glass work. By focusing on the simpler parts of car maintenance, a franchise can keep down costs while providing a swift service for customers.
The Top Automotive Oil Change Franchises of 2022
1. Jiffy Lube International
Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil.
As with most quick-lube chains, the range of services offered has expanded over the years and now includes all kinds of operations in the categories of battery, brakes, engine, exterior and glass, filters, fluids, inspections, suspension, and tires.
Founded by Jim Hindman in 1979 and franchising since that same year, the number of locations has expanded recently after holding steady for several years and currently stands at 2,157 (up from the previously reported total of 2,104), of which 45 are company-owned and 161 are located outside the US.
2. Valvoline Instant Oil Change
Valvoline Instant Oil Change isn’t as old as the company that started it. Valvoline itself dates all the way back to 1866 as a maker of engine oil (for steam engines in the beginning), additives, and lubricants.
In addition to fast, affordable oil changes, a variety of other services are offered, including transmission fluid, radiator coolant, headlight/tail light replacement, air filter replacement, fuel system cleaning, serpentine belt replacement, battery replacement, air conditioning replacement, tire rotation, displacement fluid replacement, and windshield wipers.
For most services, including oil changes, customers remain in their car during their visit, which has become a key feature during the COVID-19 pandemic. Valvoline sponsors NASCAR racecars, as well as a couple of its own car races.
Founded in 1986 and franchising since 1988, the number of locations has continued marching upwards in recent years from 868 in 2012 to the current total of 1,433 (up from the previously reported total of 1,327), of which 663 are company-owned and all are located in the US. It’s interesting to note this chain’s recent growth is largely in company-owned locations.
3. Take 5 Oil Change
Take 5 Oil Change took a cue from Valvoline and offers what it calls “contact-free” service because customers can stay in their car during an oil change – an added benefit during a global pandemic when you don’t want to leave your vehicle or touch anything or spend time in any kind of waiting room.
Take 5 is similar to the other companies on this list in terms of being founded in the 1970s-1980s, but is the new kid on the block when it comes to franchising, which it didn’t roll out until 2016.
When changing the oil, they also do a quick check of other under-hood fluids and replenish as needed, but they don’t offer the dizzying array of other services being offered by their competitors. It will be interesting to see how much the company can grow in a competitive market with its pared-down concept and business model.
Founded in 1984 but franchising only since 2016, the number of locations has expanded rapidly from just 77 in 2016 to the current total of 636 (up from the previously reported total of 551), of which 508 are company-owned and 32 are located outside the US.
4. Grease Monkey
Grease Monkey is the only company on this list where each location tends to also have a carwash (Monkey Shine). Its previous motto of Less Hassle, More Hustle has been replaced with Get in. Get out. Get going.
Besides oil changes, the extensive list of other car-care services includes air conditioning, air filters, alignments, battery, brakes, check engine light, diagnostic services, diesel exhaust fluid, differential service, fuel and emission system cleaning, fuel filter replacement, headlights, lighting, power steering, radiator services, serpentine belt, state inspection, tire rotation, tire services, transfer case service, transmission/transaxle services, washer fluid check and fill, wheel balancing, wiper blade replacement, and windshield repair.
Founded in 1978 and franchising since 1979, the number of locations has risen in recent years from 245 in 2011 to the current total of 500 (up from the previously reported total of 369), of which 241 are company-owned and 73 are located outside the US.
5. SpeeDee Oil Change and Auto Service Center
SpeeDee Oil Change and Auto Service Center offers customers its signature 17-point oil change, but includes an extensive menu of other car-care options, including tune-up services, a/c services, brake services, radiators and fluids, tire services, alignments, fluid exchange, manufacturer’s maintenance, state inspection, smog check, brake tags, maintenance and repairs, filters, lighting, check engine light, and wiper blades.
For nearly a decade, SpeeDee operated as a subsidiary of Midas, but in 2017 it became a subsidiary of Grease Monkey International.
Founded in Metairie, Louisiana in 1980 and franchising since 1982, the number of locations currently stands at 98 (no change from the previously reported total), of which one is company-owned and 21 are located outside the US.
An Important Note About Our Methodology
The franchises on this list were ranked according to the number of units in the franchise system. If you are a prospective franchisee searching for franchise opportunities that meet or exceed certain performance benchmarks for sales, profits, and return on investment, please check out this list of America’s Most Lucrative Franchises.
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