Grease Monkey Franchise: Average Sales ($1.02M) vs. Cost ($248K to $761K)

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Grease Monkey franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Grease Monkey franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Grease Monkey outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Grease Monkey franchise opportunity

Section V – Presentation and analysis of Grease Monkey’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 average, median, highest, and lowest daily vehicle count and ticket range for the 130 franchisee-owned Grease Monkey centers that operated for the entire calendar year 2022 and provided complete profit and loss statements to the franchisor, grouped by net sales ranges

• 2022 average net sales, cost of goods sold, gross profit, salaries, wages and benefits, retail operating expenses, office and G&A expenses, and EBITDAR for the 130 franchisee-owned Grease Monkey centers that operated for the entire calendar year 2022 and provided complete profit and loss statements to the franchisor, grouped by net sales ranges

• 2022 average net sales, gross profit, and EBITDAR, by quartile, for the 130 franchisee-owned Grease Monkey centers that operated for the entire calendar year 2022 and provided complete profit and loss statements to the franchisor

Section VI – Key ratios, comparables, computations, and analyses for the Grease Monkey franchise opportunity (exclusive content for Platinum subscribers)

Section I – Grease Monkey Franchise Costs

• Grease Monkey franchise costs (single Brownfield location), based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $10,000 to $39,900
• Lease and Real Estate:  $14,000 to $36,000
• Leasehold Improvements:  $60,000 to $300,000
• Equipment, Furniture, Tools, and Installation:  $69,000 to $200,400
• Grand Opening Costs:  $10,000
• Initial Inventory:  $14,500 to $25,000
• Signs:  $10,000 to $35,000
• Supplies:  $2,000 to $4,000
• Initial Training – Travel and Lodging Expenses:  $2,500 to $5,000
• Computer Hardware and Software:  $12,500 to $19,500
• Point of Sale Maintenance Fee:  $2,316 to $4,152
• Prepaid Expenses:  $2,000 to $3,000
• Additional Funds (3 months):  $40,000 to $80,000
• Total Estimated Grease Monkey Franchise Costs:  $248,816 to $761,952

• These estimated initial expenses are Grease Monkey’s best estimate of the costs you may incur in establishing and operating your Grease Monkey Franchise if you are able to find an existing or former automotive repair center to lease that currently has a basement or existing service pits (“Brownfield” locations).

Section II – Grease Monkey’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Grease Monkey’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $39,900
• Royalty:  6.0% of Gross Revenues
• Advertising Contribution:  0.5% of Gross Revenues
• Local Advertising Commitment:  4.0% of Gross Revenues
• Local and Regional Advertising Cooperatives:  established by cooperative members

Section III – Number of Franchised and Company-Owned Grease Monkey Outlets

Franchised

2020

• Outlets at the Start of the Year:  181
• Outlets at the End of the Year:  186
• Net Change:  +5

2021

• Outlets at the Start of the Year:  186
• Outlets at the End of the Year:  185
• Net Change:  -1

2022

• Outlets at the Start of the Year:  185
• Outlets at the End of the Year:  187
• Net Change:  +2

Company-Owned

2020

• Outlets at the Start of the Year:  54
• Outlets at the End of the Year:  55
• Net Change:  +1

2021

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  116
• Net Change:  +61

2022

• Outlets at the Start of the Year:  116
• Outlets at the End of the Year:  150
• Net Change:  +34

Section IV – News Updates on the Grease Monkey Franchise

• FullSpeed Automotive Paves the Way for a Strong 2023 with Major Brand Acquisition and Revolutionary New Store Models Set to Accelerate Growth

• Grease Monkey and SpeeDee Oil Change Enter New Era

• FullSpeed Automotive Appoints VP of Operations – Grease Monkey

• FullSpeed Automotive Announces Opening of New Corporate Locations in Minnesota and Illinois

• New Grease Monkey Ruskin Offers Years of Experience, Knowledge and High-quality Service

• FullSpeed Automotive Celebrates Milestone 700th Store

• Grease Monkey Ranked No. 182 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Grease Monkey Franchise (Item 19, 2023 FDD)

• The charts include a historic financial performance representation for the calendar year 2022 from franchisee-owned Centers located in the United States that, in each case, were in operation for more than one year as of December 31, 2022, operated the entire calendar year 2022, and who provided complete Profit and Loss Statements to Grease Monkey (“Subset”). Only those Centers that fall within the Subset are included in the Part 1 and Part 2 charts.

• The charts include a historic financial performance representation from 130 franchisee-owned Centers. The total number of franchisee-owned Centers located in the United States as of December 31, 2022 was 187. Centers that are not shown in the charts include Centers that commenced operations during calendar year 2022 or otherwise did not operate for the entire calendar year 2022, Centers that were involved in transfers during calendar year 2022 and thus the current owners did not operate for the entire calendar year 2022, and Centers for which complete Profit and Loss Statements were not provided to Grease Monkey. Three franchisee-owned Centers closed during the year 2022, none of which was open for less than 12 months.

• The charts do not show any financial information from any of Grease Monkey’s affiliate-owned outlets. The affiliate-owned Centers are those Centers owned and operated by Grease Monkey’s affiliate GMI.

Part 1 – Operational Results of Grease Monkey Centers Based on Net Sales Ranges – Franchisee-Owned Centers

• The Centers included in Part 1 were classified into five separate categories based on Net Sales during calendar year 2022 with Category A being Centers with annual Net Sales of up to $400,000, Category B being Centers with annual Net Sales between $400,001 and $600,000; Category C being Centers with annual Net Sales between $600,001 and $800,000; Category D being Centers with annual Net Sales between $800,001 and $1,000,000; and Category E being Centers with annual Net Sales in excess of $1,000,000.

• The statistical and financial averages and median ranges shown in Chart 1 were then compiled within each category for each chart.

Category A:  Less Than $400,000 in Sales

• Number of Centers:  3
• Daily Vehicle Count Range:  11 – 14
• Ticket Range:  $86.60 – $104.95
• Average Daily Vehicle Count:  12
• Average Ticket:  $93.97
• Median Daily Vehicle Count:  11.84
• Median Ticket:  $90.37

• Average Net Sales:  $348,904 (100%)
• Average Cost of Goods Sold:  $103,542 (29.7%)
• Average Gross Profit:  $245,362 (70.3%)
• Average Salaries, Wages, and Benefits:  $205,042 (58.8%)
• Average Retail Operating Expenses:  $92,427 (26.5%)
• Average Office and G&A Expenses:  $13,923 (4.0%)
• Average EBITDAR:  $(66,031) (-18.9%)

• Net Sales Range:  $299,673 – $382,643
• Median Net Sales:  $364,396
• Number and Percentage of Centers Exceeding Average Net Sales:  2 / 66.67%

Category B:  $400,001 to $600,000 in Sales

• Number of Centers:  13
• Daily Vehicle Count Range:  10 – 23
• Ticket Range:  $75.42 – $144.70
• Average Daily Vehicle Count:  17
• Average Ticket:  $100.33
• Median Daily Vehicle Count:  16.73
• Median Ticket:  $95.96

• Average Net Sales:  $509,092 (100%)
• Average Cost of Goods Sold:  $150,332 (29.5%)
• Average Gross Profit:  $358,760 (70.5%)
• Average Salaries, Wages, and Benefits:  $174,981 (34.4%)
• Average Retail Operating Expenses:  $109,095 (21.4%)
• Average Office and G&A Expenses:  $9,139 (1.8%)
• Average EBITDAR:  $65,545 (12.9%)

• Net Sales Range:  $421,371 – $597,839
• Median Net Sales:  $507,579
• Number and Percentage of Centers Exceeding Average Net Sales:  6 / 46.15%

Category C:  $600,001 to $800,000 in Sales

• Number of Centers:  22
• Daily Vehicle Count Range:  6 – 33
• Ticket Range:  $68.60 to $298.49
• Average Daily Vehicle Count:  20
• Average Ticket:  $116.30
• Median Daily Vehicle Count:  19.29
• Median Ticket:  $108.88

• Average Net Sales:  $698,019 (100%)
• Average Cost of Goods Sold:  $190,090 (27.2%)
• Average Gross Profit:  $507,929 (72.8%)
• Average Salaries, Wages, and Benefits:  $243,934 (34.9%)
• Average Retail Operating Expenses:  $133,031 (19.1%)
• Average Office and G&A Expenses:  $13,627 (2.0%)
• Average EBITDAR:  $117,336 (16.8%)

• Net Sales Range:  $610,508 – $797,602
• Median Net Sales:  $685,861
• Number and Percentage of Centers Exceeding Average Net Sales:  10 / 45.45%

Category D:  $800,001 to $1,000,000 in Sales

• Number of Centers:  43
• Daily Vehicle Count Range:  14 – 47
• Ticket Range:  $64.63 – $233.97
• Average Daily Vehicle Count:  28
• Average Ticket:  $108.67
• Median Daily Vehicle Count:  27.56
• Median Ticket:  $105.05

• Average Net Sales:  $904,059 (100%)
• Average Cost of Goods Sold:  $253,527 (28.0%)
• Average Gross Profit:  $650,532 (72.0%)
• Average Salaries, Wages, and Benefits:  $261,572 (28.9%)
• Average Retail Operating Expenses:  $190,768 (21.1%)
• Average Office and G&A Expenses:  $18,604 (2.1%)
• Average EBITDAR:  $179,588 (19.9%)

• Net Sales Range:  $800,636 – $997,512
• Median Net Sales:  $910,760
• Number and Percentage of Centers Exceeding Average Net Sales:  25 / 58.14%

Category E:  Greater Than $1,000,000 in Sales

• Number of Centers:  49
• Daily Vehicle Count Range:  19 – 79
• Ticket Range:  $80.65 – $172.27
• Average Daily Vehicle Count:  37
• Average Ticket:  $120.32
• Median Daily Vehicle Count:  33.38
• Median Ticket:  $121.05

• Average Net Sales:  $1,455,183 (100%)
• Average Cost of Goods Sold:  $396,197 (27.2%)
• Average Gross Profit:  $1,058,986 (72.8%)
• Average Salaries, Wages, and Benefits:  $424,223 (29.2%)
• Average Retail Operating Expenses:  $267,323 (18.4%)
• Average Office and G&A Expenses:  $13,783 (0.9%)
• Average EBITDAR:  $353,658 (24.3%)

• Net Sales Range:  $1,001,838 – $2,525,728
• Median Net Sales:  $1,437,055
• Number and Percentage of Centers Exceeding Average Net Sales:  23 / 46.94%

Part 2 – Operational Results Based on Quartiles of Average Sales – Franchisee-Owned Grease Monkey Centers (130 Centers)

• The Centers in Part 2 are the same Centers shown in Part 1, but classified into quartiles based on Net Sales. There are 33 Centers shown in the top and bottom quartiles, with 32 Centers shown in the second and third quartiles.

Top Quartile of Sales Revenue Averages (33 Centers)

• Average Net Sales:  $1,615,814 (100.0%)
• Average Gross Profit:  $1,180,276 (73.0%)
• Average EBITDAR:  $391,264 (24.2%)

Third Quartile of Sales Revenue Averages (32 Centers)

• Average Net Sales:  $1,040,723 (100.0%)
• Average Gross Profit:  $750,172 (72.1%)
• Average EBITDAR:  $214,960 (20.7%)

Second Quartile of Sales Revenue Averages (32 Centers)

• Average Net Sales:  $858,680 (100.0%)
• Average Gross Profit:  $618,941 (72.1%)
• Average EBITDAR:  $165,244 (19.2%)

Bottom Quartile of Sales Revenue Averages (33 Centers)

• Average Net Sales:  $578,699 (100.0%)
• Average Gross Profit:  $414,449 (71.6%)
• Average EBITDAR:  $77,637 (13.4%)

• Net Sales mean the aggregate amount received from all sales of services, products, or merchandise of every kind or nature, performed or sold from, at, or in connection with the operation of the Center or arising out of the operation or conduct of the Center, whether for cash or credit, but excluding (i) the amount of the discount given off the regular retail price of such services or products in connection with the use of coupons or other discount promotions; and (ii) federal, state, or municipal sales or services taxes collected from customers and paid to the appropriate taxing authority.

• Cost of Goods Sold includes only inventory items (oil, filters, greases, fluids, etc.). Franchisee-owned Centers are able to purchase products at national account prices available to you and may purchase in sufficient quantities (approximately one month’s supply) to earn volume discounts.

• Gross Profit is Net Sales minus Cost of Goods Sold.

• Salaries, Wages, and Benefits includes the salaries, wages (including overtime), benefits, payroll taxes, worker’s compensation, training, and payroll processing fees for all employees, including managers.

• Retail Operating Expenses include the following items: advertising, sales promotions, National Materials Fund fee, Royalty fee, customer satisfaction, customer warranties, mystery shopper program, equipment rental, equipment maintenance and repair, computer maintenance and support, laundry and uniforms, building maintenance and repairs, security service, operating supplies, small tools, over and short cash drawer, utilities including water, gas and sewer, trash disposal, bank charges, late charges, merchant card fees, and other miscellaneous operating expenses.

• Office and G&A Expenses include the following items: office supplies and expenses, bad debt expense, charitable contributions, licenses and fees, postage and freight, property taxes, telephone, accounting, legal and professional fees, beverage service, dues and subscriptions, general insurance, and other miscellaneous overhead expenses.

• EBITDAR means Earnings before Interest, Taxes, Depreciation, Amortization, Occupancy Costs, and Non-Operating Income/Expense. This figure is not an actual amount earned.

• Your occupancy costs will vary based on the location of your Center, whether you secure a build-to-suit lease, purchase the property and construct a building, or select another rental or ownership arrangement, as well as other factors relating to your occupancy.

• Your interest expense will depend on your borrowing requirements.

• Non-Operating Income/Expenses include: travel and entertainment expenses, interest income, owners’ compensation, draws and life insurance expenses, overhead expense allocations by multi-unit operators, and other non-operating income/expense items.

• The compiled statistical and financial information in Part 1 and Part 2 (collectively referred to as the “Statement”) are based on the Profit and Loss Statements provided to Grease Monkey by the franchisee-owned Centers and have not been audited or reviewed by an independent certified public accountant.

• The Statement does not include any estimate of the federal income tax that would be payable or the state or local income tax that may be applicable to the particular jurisdiction in which a Center is located. In addition, the Statement does not include any information or estimate regarding the occupancy expenses which will be incurred at a particular location.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance you will sell as much.

Section VI – Grease Monkey Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️