In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Jiffy Lube franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Jiffy Lube franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Jiffy Lube franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned Jiffy Lube outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Jiffy Lube’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average, median, high, and low net adjusted sales and vehicle count for the 1,897 franchised Jiffy Lube service centers that were open for 12 full months in 2019 (system-wide and by quartile)
- 2019 average, median, high, and low net adjusted sales and vehicle count for the 11 new franchised Jiffy Lube service centers that opened in 2018 and were open for 12 full months in 2019
- average sales revenue, cost of goods sold, labor, operating expenses, and net income for the 73 franchised Jiffy Lube service centers that offered a variety of light automotive repair services, including repairs such as brakes, suspension, spark plugs, and tires, that are a complement to Jiffy Lube’s core business, measured during the pilot from December 2015 to December 2016
- 2019 average, median, high, and low net adjusted sales for the new Jiffy Lube Multicare service centers (open 7+ months, 18+ months, 30+ months, 42+ months, and 54+ months)
Section I – Background Information
14 Things You Need to Know About the Jiffy Lube Franchise
Continues Expansion in Southwest
1. In late September 2019, Jiffy Lube announced that Bove Group was continuing the momentum of Jiffy Lube growth with two new service centers opening in the Greater Phoenix Area. The Jiffy Lube franchisee opened a location in Queen Creek, Arizona, the entity’s second new store in 2019. The 4-bay Jiffy Lube Multicare facility provides expanded services including brakes, tires, and engine diagnostics as well as the brand’s Jiffy Lube Signature Service Oil Change.
2. Not long after, Bove Group opened another Jiffy Lube Multicare service center in Cave Creek. In addition to quick, convenient oil change services, this location too will offer expanded automotive maintenance services. The opening of the Cave Creek store marks the 52nd Jiffy Lube location in Arizona that is owned and operated by Bove Group.
3. A long-time resident of Phoenix, Bob Bove, president and CEO of Bove Group, sees significant business potential in the market. According to Bove, “We’ve experienced great performance at our locations and are committed to further growth. Jiffy Lube is an iconic brand – a brand that drivers rely upon to help keep their vehicle in top shape. As a franchisee since 1996, I take great pride in delivering quality automotive service to the community.”
Teams Up with Muscular Dystrophy Association for Annual MUSCLE UP! Campaign
4. In early August 2019, Jiffy Lube and the Muscular Dystrophy Association (MDA) teamed up for the eighth annual MUSCLE UP! campaign. The campaign raises funds to help send kids ages 8 to 17 who are living with neuromuscular diseases to MDA Summer Camp at no cost to their families, and also to support family services and research.
5. Throughout the month of August, Jiffy Lube customers were invited to make a donation of $3 or more to MDA at participating locations. In return, customers received a MUSCLE UP! savings book containing offers totaling more than $100 from Jiffy Lube and other national retailers, including Men’s Wearhouse, Fuddruckers, and Office Depot.
6. Sara Smith, director of marketing for Jiffy Lube International, Inc., said, “Jiffy Lube and its franchisees are committed to giving back to the communities in which we live and operate. We take pride in our long-standing relationship with MDA. The MUSCLE UP! campaign enables us to come together with our valued customers to support those living with muscle disease.”
7. Since launching MUSCLE UP! in 2012, the campaign has raised more than $6.5 million in support of MDA Summer Camp, research, and family services, all making a difference as MDA continues to be a leader in the neuromuscular disease community.
8. Lynn O’Connor Vos, president and CEO of MDA, added, “We are very proud of our partnership with Jiffy Lube as it makes it possible for MDA to continue our work to transform the lives of children and adults living with muscular dystrophy, ALS, and related neuromuscular diseases. The impact of this funding is clear when you see kids learning vital life skills, gaining independence and confidence, and making life-long friendships at an MDA Summer Camp especially for their needs. We are thankful for the unwavering support of everyone at Jiffy Lube including the franchisees, service center employees, and customers.”
Indiana Locations Launch High School Internship Program
9. In early June 2020, Jiffy Lube of Indiana announced that it was launching its new high school internship program. The company says the program will help expose students to the automotive maintenance industry. Jiffy Lube says each of its 50 Indiana service centers will take on one intern. The company says the program will also help the interns build life skills that will carry over into their professional careers.
10. Lonnie Hinkle, chief operating officer for Jiffy Lube of Indiana, said, “It is an exciting time to be part of a program like this. It’s positively impacting our business, but more importantly, it is improving our communities, inspiring our young adults, and opening alternative job opportunities to the next generation of Hoosiers across the state.”
11. The company says students will be taught from its Jiffy Lube University curriculum and will complete hands-on tasks. Jiffy Lube says the program’s in-depth training will focus on topics such as business strategy, customer experience, inspections and procedures, as well as systems, components, and product knowledge. At the time of the announcement, Jiffy Lube said the program had 10 students enrolled and planned to add more.
Company History
12. Jiffy Lube was founded in 1971 by Edwin H. Washburn in Ogden, Utah. Washburn wanted to open a specialty shop that focused solely on automotive oil changes. Over the next few years, Washburn opened a few more Jiffy Lubes around Utah. Then in 1979, W. James Hindman bought out Washburn’s seven service centers and established Jiffy Lube International – this is the year that the company cites as its official founding date. Hindman also moved Jiffy Lube’s headquarters to Baltimore, Maryland.
13. Over the next decade, Jiffy Lube continued to expand around the U.S. and by the end of the 1980s, there were over 1,000 locations in operation. In 1991, Jiffy Lube was acquired by Pennzoil. Following the merger of Pennzoil and Quaker State in 1998, the 581 Q Lube stores were merged into the Jiffy Lube brand. Pennzoil-Quaker was later purchased by Shell Oil Company in 2002. Today, there are Jiffy Lube shops around North and South America.
Entrepreneur’s Franchise 500
14. Jiffy Lube ranked No. 70 on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Jiffy Lube franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Jiffy Lube’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2017
- Outlets at the Start of the Year: 1,911
- Outlets at the End of the Year: 1,923
- Net Change: +12
2018
- Outlets at the Start of the Year: 1,923
- Outlets at the End of the Year: 1,917
- Net Change: -6
2019
- Outlets at the Start of the Year: 1,917
- Outlets at the End of the Year: 1,919
- Net Change: 2
Company-Owned
2017
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2018
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2019
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 11
- Net Change: +11
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- This Item 19 sets forth certain historical data. The following tables show sales and vehicle counts of franchised stores for the full 2019 calendar year. All franchised service centers which were open for 12 full months in 2019 are included in the tables below.
- Certain of the franchised service centers participated in optional programs, such as the Jiffy Lube Brakes & Services program and the extended automotive repair and maintenance services program.
- The sales reported is Gross Sales, which means all receipts for goods and services sold in the ordinary course of business, excluding sales tax, coupons, discounts, proceeds of sales of recovered materials, and amounts refunded to customers. This number is the basis for payment of royalty fees.
- Vehicle count reported is the total number of separate customer transactions experienced by a store. Although a store may have serviced the same vehicle on multiple occasions during the calendar year, each occasion would be reported as one vehicle.
- All data for all stores is reported daily through a point-of-sale computer system. These figures have not been audited, although Jiffy Lube believes them to be reliable.
- The Sales Tables and Vehicles Count Tables are broken into four quartiles. Each quartile displays ranges of High, Average, Low, and Median annual Gross Sales, vehicle counts, and the number and percentage of franchised service centers that exceeded the average in each quartile.
- The total system is also displayed with the ranges of High, Average, Low, and Median for each, and the percentage of service centers that exceeded the average.
- For purposes of this Item 19. “Net Adjusted Sales” are calculated as sales minus promotions, warranty, non-royalty income, and any national billed fleet discounts.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.
Part 1 – Comparative Annual Sales (2019)
First Quartile (475 stores)
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