Jiffy Lube: $1.04M Average Sales vs. $207K-$500K Franchise Cost

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

Section I – Estimated initial investment (franchise costs) for a Jiffy Lube franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Jiffy Lube franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Jiffy Lube outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Jiffy Lube franchise opportunity

Section V – Presentation and analysis of Jiffy Lube’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low net adjusted sales and vehicle count for the 2,014 franchised Jiffy Lube service centers that were open for 12 full months in 2023 (system-wide and by quartile)

• 2023 average, median, high, and low net adjusted sales and vehicle count for the 43 new franchised Jiffy Lube service centers that opened in 2022 and were open for 12 full months in 2023

• 2023 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, 54+ months, 66+ months, 78+ months, and 90+ months)

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

Section I – Jiffy Lube Franchise Costs

• Jiffy Lube franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $0 to $35,000
• Conversion Fee:  $17,500
• First Month’s Rent and Security Deposit:  $16,000 to $40,000
• Equipment, Signs, and Fixtures:  $125,000 to $325,000
• Initial Inventory:  $20,000 to $30,000
• Opening Marketing Expense:  $15,000 to $20,000
• Insurance:  $10,000 to $20,000
• Training Expenses Incurred by You or Your Employees:  $1,000 to $5,000 (does not include wages or salaries of attendees)
• Additional Funds (Working Capital) – 6 Months:  $45,000
• Total Expenditures:  $207,000 to $500,000
• Growth Funding:  $0 to $77,350
• Total Estimated Jiffy Lube Franchise Costs:  $232,000 to $442,650

Section II – Jiffy Lube’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Jiffy Lube’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $0 to $35,000

• Royalty:  for new-to-system locations (whether conversion sites or new locations) under a New Way Forward or Pacesetter Franchise Agreement, 0% of Gross Sales for 1st 6-month period of operation, and 4% (or 3% of Gross Sales if you pay the Royalty on or before the due date) for 7th month of operation onward (5% if the Pacesetter or Fast Lubes Supply Agreement is terminated). In addition, the monthly royalty fee will be reduced by 1% on all tire rubber revenue for Jiffy Lube Multicare service centers under the Jiffy Lube Multicare Franchise Agreement Addendum.

• National Advertising Fund Contributions:  1.5% of Gross Sales

• Local/Cooperative Advertising:  2.5% of Gross Sales

• Minimum Advertising Requirement:  4% of Gross Sales

Section III – Number of Franchised and Company-Owned Jiffy Lube Outlets

Franchised

2021

• Outlets at the Start of the Year:  1,920
• Outlets at the End of the Year:  1,951
• Net Change:  +31

2022

• Outlets at the Start of the Year:  1,951
• Outlets at the End of the Year:  1,684
• Net Change:  -267

2023

• Outlets at the Start of the Year:  1,684
• Outlets at the End of the Year:  1,710
• Net Change:  +26

Company-Owned

2021

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  55
• Net Change:  +22

2022

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  359
• Net Change:  +304

2023

• Outlets at the Start of the Year:  359
• Outlets at the End of the Year:  359
• Net Change:  0

Section IV – News Updates on the Jiffy Lube Franchise

• Jiffy Lube Names Bronco Lube Franchisee of the Year

• Checking in with Jiffy Lube 2023 Franchisee of the Year: Bronco Lube

• Jiffy Lube Collaborates with Meals on Wheels America and Senior Nutrition Programs for National Drive to Do More Fundraising Event

• How a Jiffy Lube Franchisee with 500 Locations Used Machine Learning to Fine-Tune Their Finance Tech Transformation

• Jiffy Lube Honors STC Management as Franchisee of the Year

• Jiffy Lube Ranked No. 119 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Jiffy Lube Franchise (Item 19, 2024 FDD)

• This Item 19 sets forth certain historical data. The following tables show sales and vehicle counts of franchised stores for the full 2023 calendar year. All franchised service centers which were open for 12 full months in 2023 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 Vehicle 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 – Annual Sales (2023)

First Quartile (504 stores)

• Low:  $139,217.68
• Average:  $528,006.12
• High:  $688,471.71
• Median:  $559,638.46
• Number/Percent Above Average:  293/58.1%

Second Quartile (503 stores)

• Low:  $689,862.85
• Average:  $817,616.35
• High:  $940,261.63
• Median:  $811,036.32
• Number/Percent Above Average:  240/47.7%

Third Quartile (502 stores)

• Low:  $940,936.70
• Average:  $1,084,334.21
• High:  $1,263,813.32
• Median:  $1,071,410.78
• Number/Percent Above Average:  233/46.4%

Fourth Quartile (505 stores)

• Low:  $1,204,157.77
• Average:  $1,728,692.10
• High:  $4,723,993.96
• Median:  $1,606,817.16
• Number/Percent Above Average:  203/40.2%

System (2,014 stores)

• Low:  $139,217.68
• Average:  $1,040,070.20
• High:  $4,723,993.96
• Median:  $940,599.17
• Number/Percent Above Average:  807/40.1%

Part 2 – Annual Vehicle Count (2023)

First Quartile (504 stores)

• Low:  1,524
• Average:  4,846
• High:  6,269
• Median:  5,062
• Number/Percent Above Average:  287/56.9%

Second Quartile (504 stores)

• Low:  6,278
• Average:  7,306
• High:  8,367
• Median:  7,256
• Number/Percent Above Average:  239/47.4%

Third Quartile (502 stores)

• Low:  8,370
• Average:  9,700
• High:  11,116
• Median:  9,701
• Number/Percent Above Average:  251/50%

Fourth Quartile (504 stores)

• Low:  11,118
• Average:  14,723
• High:  29,038
• Median:  13,714
• Number/Percent Above Average:  194/38.5%

System (2,014 stores)

• Low:  1,524
• Average:  9,143
• High:  29,038
• Median:  8,367
• Number/Percent Above Average:  845/42%

Part 3 – Annual Net Adjusted Sales of New Stores (2023)

• Except as described below, the following tables describe sales and vehicle counts of all new service centers established in the 2023 calendar year.

• A new service center is a service center that is newly constructed, and not converted from a pre-existing service center or similar automotive service business.

• The charts provide sales and vehicle information only for those new service centers which were in operation for all of 2023.

• Number of Stores:  43
• Low:  $271,197.66
• Average:  $619,107.80
• High:  $1,130,162.73
• Median:  $646,016.87
• Number/Percent Above Average:  24/55.8%

Part 4 – Annual Vehicle Count of New Stores (2023)

• Number of Stores:  43
• Low:  2,855
• Average:  4,897
• High:  8,583
• Median:  4,792
• Number/Percent Above Average:  21/48.8%

Part 5 – New Jiffy Lube Multicare Service Centers

• Beginning in 2014, Jiffy Lube began offering Brakes and Services. This was followed by the deployment of a new store layout to support the implementation of the full Jiffy Lube Multicare business model. These new service center prototypes featured a minimum of four bays, an expanded service offering, and enhanced customer lounges.

• The net sales of these new stores are as follows:

7+ Months Open

• Number of Stores:  175

• Average Year 1 Sales:  $675,084
• High Year 1 Sales:  $1,404,010
• Low Year 1 Sales:  $264,352
• Median Year 1 Sales:  $638,956

18+ Months Open

• Number of Stores:  147

• Average Year 1 Sales:  $687,201
• High Year 1 Sales:  $1,404,010
• Low Year 1 Sales:  $264,352
• Median Year 1 Sales:  $642,817

• Average Year 2 Sales:  $838,807
• High Year 2 Sales:  $1,905,548
• Low Year 2 Sales:  $269,942
• Median Year 2 Sales:  $786,796

30+ Months Open

• Number of Stores:  106

• Average Year 1 Sales:  $699,641
• High Year 1 Sales:  $1,262,130
• Low Year 1 Sales:  $264,352
• Median Year 1 Sales:  $748,888

• Average Year 2 Sales:  $858,299
• High Year 2 Sales:  $1,905,548
• Low Year 2 Sales:  $269,942
• Median Year 2 Sales:  $846,133

• Average Year 3 Sales:  $973,329
• High Year 3 Sales:  $2,102,114
• Low Year 3 Sales:  $269,290
• Median Year 3 Sales:  $931,870

42+ Months Open

• Number of Stores:  63

• Average Year 1 Sales:  $746,126
• High Year 1 Sales:  $1,262,130
• Low Year 1 Sales:  $265,698
• Median Year 1 Sales:  $748,888

• Average Year 2 Sales:  $903,442
• High Year 2 Sales:  $1,783,752
• Low Year 2 Sales:  $437,094
• Median Year 2 Sales:  $889,096

• Average Year 3 Sales:  $1,013,450
• High Year 3 Sales:  $2,069,053
• Low Year 3 Sales:  $499,611
• Median Year 3 Sales:  $982,405

• Average Year 4 Sales:  $1,101,486
• High Year 4 Sales:  $2,153,498
• Low Year 4 Sales:  $496,323
• Median Year 4 Sales:  $1,122,114

54+ Months Open

• Number of Stores:  46

• Average Year 1 Sales:  $771,545
• High Year 1 Sales:  $1,262,130
• Low Year 1 Sales:  $405,298
• Median Year 1 Sales:  $753,822

• Average Year 2 Sales:  $900,611
• High Year 2 Sales:  $1,603,537
• Low Year 2 Sales:  $469,246
• Median Year 2 Sales:  $894,977

• Average Year 3 Sales:  $997,386
• High Year 3 Sales:  $1,560,870
• Low Year 3 Sales:  $507,329
• Median Year 3 Sales:  $1,042,135

• Average Year 4 Sales:  $1,101,097
• High Year 4 Sales:  $1,798,305
• Low Year 4 Sales:  $502,891
• Median Year 4 Sales:  $1,157,121

• Average Year 5 Sales:  $1,177,951
• High Year 5 Sales:  $1,936,490
• Low Year 5 Sales:  $580,924
• Median Year 5 Sales:  $1,217,256

66+ Months Open

• Number of Stores:  34

• Average Year 1 Sales:  $767,012
• High Year 1 Sales:  $1,262,130
• Low Year 1 Sales:  $405,298
• Median Year 1 Sales:  $750,477

• Average Year 2 Sales:  $912,078
• High Year 2 Sales:  $1,603,537
• Low Year 2 Sales:  $469,246
• Median Year 2 Sales:  $901,248

• Average Year 3 Sales:  $979,509
• High Year 3 Sales:  $1,560,870
• Low Year 3 Sales:  $507,329
• Median Year 3 Sales:  $1,042,135

• Average Year 4 Sales:  $1,083,094
• High Year 4 Sales:  $1,653,392
• Low Year 4 Sales:  $502,891
• Median Year 4 Sales:  $1,198,270

• Average Year 5 Sales:  $1,171,278
• High Year 5 Sales:  $1,929,119
• Low Year 5 Sales:  $580,924
• Median Year 5 Sales:  $1,241,954

78+ Months Open

• Number of Stores:  17

• Average Year 1 Sales:  $752,052
• High Year 1 Sales:  $1,156,530
• Low Year 1 Sales:  $454,284
• Median Year 1 Sales:  $734,112

• Average Year 2 Sales:  $879,620
• High Year 2 Sales:  $1,265,398
• Low Year 2 Sales:  $469,246
• Median Year 2 Sales:  $892,394

• Average Year 3 Sales:  $947,786
• High Year 3 Sales:  $1,289,806
• Low Year 3 Sales:  $540,330
• Median Year 3 Sales:  $982,405

• Average Year 4 Sales:  $998,067
• High Year 4 Sales:  $1,528,077
• Low Year 4 Sales:  $502,891
• Median Year 4 Sales:  $1,071,807

• Average Year 5 Sales:  $1,078,287
• High Year 5 Sales:  $1,716,265
• Low Year 5 Sales:  $617,694
• Median Year 5 Sales:  $1,090,320

90+ Months Open

• Number of Stores:  10

• Average Year 1 Sales:  $855,603
• High Year 1 Sales:  $1,156,530
• Low Year 1 Sales:  $514,930
• Median Year 1 Sales:  $875,822

• Average Year 2 Sales:  $997,062
• High Year 2 Sales:  $1,265,398
• Low Year 2 Sales:  $552,507
• Median Year 2 Sales:  $1,011,835

• Average Year 3 Sales:  $1,074,990
• High Year 3 Sales:  $1,289,806
• Low Year 3 Sales:  $540,545
• Median Year 3 Sales:  $1,136,400

• Average Year 4 Sales:  $1,157,431
• High Year 4 Sales:  $1,528,077
• Low Year 4 Sales:  $564,163
• Median Year 4 Sales:  $1,214,154

• Average Year 5 Sales:  $1,198,593
• High Year 5 Sales:  $1,468,531
• Low Year 5 Sales:  $617,694
• Median Year 5 Sales:  $1,261,890

• If a store has been open for the full 12 months of any one-year period, the sales amount used in the calculation of the average net adjusted sales in the above chart is the store’s actual sales for the store.

• If a store has been open for less than a full 12 months of any one-year period, the sales amount used in the calculation of the average net adjusted sales in the above chart is derived by subtracting sales from the first month the store was open from total sales, dividing the remaining number by the number of full months the store was open, multiplied by 12.

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