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How to start Jiffy Lube Franchise in USA

Complete guide to start Jiffy Lube Franchise in USA

 




 

Jiffy Lube franchise Overview

 

Jiffy Lube is the biggest chain of Oil change and preventive maintenance with a quick lube change in the United States. Cars are a big business in U.S automotive market, and all cars need oil changes and other services like repairing air filtration, transmission, air conditioning, and fuel system. With a history of success and well-known reputation they currently own over 2000 stores and is currently led by CEO, W James Hindman.

 

In 1971 Jiffy Lube’s first store came into being on 36th Street in Ogden, Utah by Edwin H. Washburn. They started franchising in 1979. In 1987, Jiffy Lube went public and by 1989 there were over 1,019 Franchises and stores. With more than 35 years of experience, currently Jiffy Lube has more than 20 million customers who rely on them yearly. It was ranked #1 in category in Entrepreneurs 2022. Its headquarters is located in Houston, Texas.

 

Jiffy Lube Franchise Benefits

 

Top benefits for joining Jiffy Lube market:

 

Automotive Services Excellent (ASE) accredited program: under this program franchise owners can win award winning online and in-store training through Jiffy Lube University.

 

Skill & Knowledge: franchise owners and their employees will be provided with skill and knowledge by Jiffy Lube University for exception service.

 

Marketing Operations: in order to make your business a huge success the franchise remains always available in order to guide you in every step.

 

12-week Onboarding Process: this benefit is for all new Franchise  owners, this process is for the welfare of every new store owner.

 

Training: they provide 40 hours of On-The-Job training and 120 hours of Classroom training.

 

Owners can enjoy other benefits like, Brand Recognition, Proven System, Network of Support and Fleet Services.

 

Jiffy Lube Franchise Requirements

 

For Jiffy Lube Franchise you need to require liquid assets of $250k, minimum fee of $35k, and average unit revenue of $822k.

 

Liquid assets $250,000
Franchise Fee $35,000
Average Revenue $822,000
Royalty 5%
Marketing fee1.5%
Local Marketing 2.5%

 

Jiffy Lube Franchise Cost

 



 

For the Jiffy Lube franchise its estimated total investment ranges from $232,000 to $442,650. Chat below includes 2022 upfront costs, one time fees, and other costs to launch the franchise.

 

Type of Expenditure Amount Payment made to 
Initial Franchise Fee $0 – $35,000US
Conversion Fee$17,500US
Rent & Security deposit- 1 month$16,000 – $40,000US, Landlord 
Equipment, signs & fixtures $125,000 – $325,000US, Vendors, Landlord 
Initial Inventory $20,000 – $30,000US, Vendors 
Opening Marketing Experience $15,000 – $20,000Advertising, media other vendors 
Insurance $10,000 – $20,000Insurance carriers 
Training Expenses (owner + employees)$1,000 – $5,000 (wages of attendees excluded)Airlines, hotels, etc
Additional Funds $45,000Employees, Suppliers, Utilities, govt, agencies, etc
Total Expenditures$207,000 – $500,000 
Growth Funding $0 – $77,350To Franchisee
Net Total $232,000 – $442,650 

 

Jiffy Lube Franchise Profit

 

For the franchisor it is a very profitable business with retained earnings of $1.9 billion in 2022 Q1 compared with a loss of $133 million in 2020 Q1.

   
Revenue20222021

Sales & other operating revenue:

Equity investment Income

Net gain (loss) on sale of assets

Interest income

Other income 

$18,408

365

150

11

37

$14,520

103

(74)

19

48

Total Revenue18,97114,616

 

Costs & Expenses 

  

Purchased raw materials & products

Operating expenses

Selling, general and administrative Expenses

Exploration

Research & Development

Depreciation, Depletion & amortization

Assets impairments & write-offs 

Interest expense 

13,710

1,123

723

39

19

1,352

8

8

10,248

1,934

644

141

20

1,622

45

75

 

Total Costs & Expenses 

16,98214,729
Income/ (loss) before income tax 1,989(113)
Income tax (expense) / benefit(444)62
Net income/ (loss)1,545(51)

For the franchisor it is a very profitable business with retained earnings of $1.9 billion in 2022 Q1 compared with a loss of $133 million in 2020 Q1. 

 

Jiffy Lube Locations

 



 

This recognized leader of the car care category has over 2000 locations in the USA and worldwide. As per 2021 data, top States in USA with most number of Jiffy Lube Locations.

 

  • California is leading with 265 stores for every 149102 people which is about 13% of all its locations.

 

  • Texas with 155 stores for every 187070 people which is about 7% of all its locations.

 

  • Illinois with 107 stores for every 118428 people which is about 5% of all its locations.

 

Jiffy Lube Services

 

In order to keep your most important asset in top shape and conditions, Jiffy Lube provides many services like manufacturing, maintenance, checkup and other services to keep your vehicle going.

 

Oil change: they provide oil change service for your engine in order to keep your vehicle clean, cool and protected.

 

Battery: in order to run efficiently they provide many different services like battery tested, new battery or the terminals cleaned.

 

Brakes: in order to keep your stopping power responsive and reliable, they provide everything from brake pads to brake fluids to get you back on the road quickly.

 

Engine: for your engine’s longevity, reliability and optimal performance they provide its services like check engine lights, spark plugs, serpentine belts and radiator hoses.

 

Exterior & Glass: for a better view, clarity and well-lit, they provide exterior & glass service.

 

Filters: they provide every kind of filter services like filtering a fluid or the air for optimal performance & vehicle longevity.

 

They also provide other important services like Fluids, Inspections, Suspension, Tires and much more.

 

Jiffy Lube Franchise Application

 

To apply for the Jiffy Lube franchise, you need to ensure meeting criteria of basic requirements. In order to establish the franchise,

 

  • You need to calculate the start-up costs.

 

  • You need to understand the required opening fees.

 

  • Evaluate your finances.

 

  • In order to know more, you can request for more information while addressing them directly.

 

  • Sign an agreement for a period of 20 years, you can also renew it later for 10 years.

 

  • Congratulations, the store is all yours.

 

Conclusion

 

Jiffy Lube has a powerful network, proven model and an opportunity providing industry. They have successfully run the automotive preventive maintenance industry for the past 35 years and are currently working on the mission to go beyond oil changes alone. They are providing other satisfactory services for their customers so they can Leave Worry Behind.

 

If you want to be a part of Jiffy Lube and are dedicated towards this profession then you need to check its required criteria and start your business, because it’s best for the long run, very profitable and worth investing in. 




Frequently Asked Questions(FAQ's)

For the Jiffy Lube franchise its estimated total investment ranges from $232,000 to $442,650

The owner can earn an average of $63,000 per-tax per year.

Yes, Jiffy Lube is a franchise and has been franchising since 1979.

It is a very profitable business with retained earnings of $1.9 billion.

They currently own over 2000 stores worldwide.