how to make money oil change franchise

Start an Oil Change Business by following these 10 steps:

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How much profit does an oil change make?

What is an oil change business?

How to market a garage?

How much does an oil change cost?

Do you need a CO before leasing?

Do businesses have to pay sales tax?

Is this Business Right For You?

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Is a oil change business profitable?

Starting an oil change business is one of the most profitable businesses that one could ever open. With clear proof with statistics, we have proved why. Although profitable, like any other business, the risks in running a business successfully will definitely apply in this case as well.

How much money does a Jiffy Lube franchise make?

2021 Jiffy Lube Median Franchise Sales: $542,589 Based on the median sales provided by Jiffy Lube's franchise locations, at the industry standard of a 5% profit margin it will take around 14 years to recoup your investment.

What is the profit margin for oil changes?

Key Takeaways: Oil and gas production profit margins are volatile, varying widely with energy prices. The average net profit margin for oil and gas production was 4.7% in 2021 and 31.3% in Q4 2021.

How much does a Mr Lube franchise cost?

I understand the cost of opening a Mr. Lube flagship store is approximately $1,800,000 - $2,200,000. The cash equity requirement of the franchisee is approximately $600,000 - $800,000. Exceptions include conversions of existing automotive stores or the landlord building the shell, both of which may reduce costs.

What is the highest paid franchise?

What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.

What's the highest paying franchise?

Top 14 Most Profitable FranchisesMcDonald's. Units in operation: 39,360. ... Dunkin Donuts. Units in operation: 12,800. ... Taco Bell. Units in operation 12,800. ... Subway Franchise. Offers Financing: Yes. ... Anytime Fitness Franchise. Units in operation: 4,904. ... Sonic. Royalty: 2.5% - 5.0% ... Planet Fitness. Royalty 7.0% ... Orangetheory Fitness.More items...

How much do oil owners make?

As of Oct 20, 2022, the average annual pay for a Crude Oil Owner Operator in the United States is $263,522 a year. Just in case you need a simple salary calculator, that works out to be approximately $126.69 an hour. This is the equivalent of $5,067/week or $21,960/month.

Do oil companies make a lot of money?

Exxon alone reported a profit of $17.9 billion – the highest quarterly profit reported by any oil company in history – while Chevron reported $11.6 billion, Shell reported $11.47 billion, and BP reported $8.45 billion.

Is $100 alot for an oil change?

The cost of an oil change can range from $20 to $100 at a lube shop (and around $30 to $45 if you do it yourself).

How much do franchise owners pay themselves?

Percent fees are based on total gross sales and are usually between 5 – 9%.

How much do franchise owners make?

When researchers accounted for the inflations caused by the few top franchises, it was established that the average annual income of 51 percent of franchisees is less than 50,000 dollars. The study also found that only 7 percent of franchise owners earn over 250,000 dollars a year.

Do franchises make a lot of money?

Buying a franchise might seem like easy money, but those royalties and fees will quickly cut into profit margins. The majority of franchise owners earn less than $50,000 per year.

How much do franchise owners make a year?

about 80,000 dollarsAccording to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars.

How Much Does owning a franchise make?

Franchise Business Review found that the average annual pre-tax income of franchise owners in America is $80,000. Only 7% of franchise owners make more than $250,000 annually, and 51% earn less than $50,000. Legally, franchisors cannot give income amounts or forecasts of future income.

How much do franchise owners get paid?

The largest fee is made upon initial buy-in of the franchise and requires a large sum of upfront cash. Then, most franchisors will collect royalty fees in percent or fixed form. Percent fees are based on total gross sales and are usually between 5 – 9%.

How much does 1 Chick-fil-A franchise make a year?

Plus, QSR Magazine released a report that the average Chick-fil-A makes about $4.4 million in sales per year - $1.7 million more than the next best restaurant, Whataburger. In fact, Chick-fil-A makes more per restaurant than McDonald's, Subway and Starbucks combined, even while being closed every Sunday.

Due to the spread of the coronavirus, is this business essential?

Yes. Based on current information across multiple states with emergency orders, this business provides essential goods and services.For more inform...

What are the costs involved in opening an Oil Change Business?

In order to get off the ground, your largest investment will be for the equipment in your garage bays. Expect to invest at least $250,000 for a two...

What are the ongoing expenses for an Oil Change Business?

The equipment in the garage such as lifts and pumps must be maintained by a qualified service company. You will need to maintain a stock of a varie...

Who is the target market?

Everybody who drives a car is a potential customer. The most lucrative areas are situated at the edge of urban markets, as suburban families own mo...

How much can you charge customers?

You will want to shop your competitors to ensure your price is appropriate to your neighborhood. A simple oil change averages between $25 and $55....

How much profit can an Oil Change Business make?

With many oil franchises bringing in nearly $250,000 a year, as the owner, it is possible to see a net profit of $75,000 to $80,000 a year. If your...

How can you make your business more profitable?

While an oil change in itself makes very little profit, the addition of extra services and parts for each customer raises the average profit margin...

Is this Business Right For You?

If you enjoy working with cars, customers, and providing a valuable service to the community, this might be the right business opportunity for you....

What happens during a typical day at an Oil Change Business?

You and your employees will have a fairly regular schedule that includes: Maintaining the garage bays, lifts, and pumps Neatening up the customer w...

What are some skills and experiences that will help you build a successful Oil Change Business?

If you are going to be doing the oil changes yourself, then you should have completed basic automotive maintenance courses at your local technical...

How much does it cost to get a start in the oil change services industry?

Franchises on average have a $30,000 franchise fee. Owners will need from $100,000 to $300,000 to purchase inventory along with tools/equipment the...

Are oil change franchises profitable?

Revenue for franchises is about $7 billion annually, shared by 4,000 franchises. An individual franchise typically takes in about $600,000 in annua...

How do you start an oil change business?

Starting the business begins with your research into the market for these franchises, including new technology, equipment, industry trends and more...

How much does it cost to get a start in the oil change services industry?

Franchises on average have a $30,000 franchise fee. Owners will need from $100,000 to $300,000 to purchase inventory along with tools/equipment the industry demands.

How long does it take to become a franchise owner?

All of the franchises offer extensive training at special centers and include field support. A new franchise owner can expect to spend a minimum of 6 weeks in training.

How many states does Jiffy Lube have?

Like SpeeDee, Jiffy Lube has been in the franchises industry since 1980. Jiffy Lube has franchises in 47 states.

How much does a Merlin franchise cost?

Merlin offers complete vehicle care. The franchise fee for a new Merlin is $30,000, plus $110,000 cash. The company has special Motivation and Achievement programs for employees.

What is Valvoline oil change?

Valvoline Instant Oil Change includes additional services such as all repairs and tires. The business includes a specialized point-of-sale system that tracks customers’ service histories and maintenance records.

What is Express Oil Change?

As the name implies, Express Oil Change and Tire Engineers provide oil change and a full selection of tires. The dual focus leads to a simpler operation for these franchises.

What is fleet services?

Fleet Services includes oil change services and repairs for both automotive and heavy-duty (trucks). The heavy-duty truck aspect of Fleet Services includes commercial and government fleets. The commercial and government fleet work is the backbone of these franchises.

How long does it take to open a Valvoline oil change?

The company has over 30 years of experience as a business owner and franchisor. Almost a third of 900+ franchise locations belong to VIOC. Franchisees can rely on the support of the franchisor in every aspect of the business. Opening of the location will take 3-6 months.

How long does it take to change oil at Luby Dudes?

Customers don’t come to Luby Dudes, Luby Dudes come to customers! On-site oil change only takes about 20 minutes.

What is a Speedee oil change?

SpeeDee Oil Change & Auto Service Center franchise offers full-service car care. They have more than 150 locations for 40 years of work. The franchisor offers to clients an individual approach provided by qualified specialists, innovative computerized diagnostic equipment. The company provides franchisees with comprehensive assistance in business planning, as well as technical and marketing support.

Where is Valvoline oil change located?

and was created in 1986 with the purchase of quick-lube centers throughout New York, Minneapolis and Michigan. The public company began franchising in 1988 and is based in Lexington, Kentucky.

Who owns Jiffy Lube?

Jiffy Lube Int'l. Inc. was acquired by Pennzoil-Quaker State Co. in the 1990s, which was then acquired by Shell Oil Company in 2002. Jiffy Lube has franchised locations throughout the U.S. and Canada.

Who owns Victory Lane Quick Oil Change?

Victory Lane franchise is a rare franchise owned by a former franchisee. Since 2014 Justin and Lauren Cialella, who were the majority franchisees owning 10 locations, acquired the entire franchise. And that is solid proof of how successful franchisees of that company can become. The franchisor has a discounted franchise fee program for multiple location owners.

Who is the founder of Dipstx?

Dipstx is one of the first mobile oil change franchises, founded by veteran Kris Logsdon and David Hadle. Customers love the company because of the convenience: no need to go somewhere and wait. Dipstx provides oil and filter changes, brake pad replacement, windshield wiper replacement, and tire rotations at the customer’s location.

How much does an oil change franchise make?

A typical oil change franchise location can expect to perform about 1,200 jobs per month.

What is an oil change franchise?

Oil change franchises change the oil in all motor vehicles; not just cars. So, that includes motorbikes and scooters, vans and trucks, and recreational vehicles such as coaches and trailers.

What is grease monkey franchise?

Rev Up Your Revenue Potential With A Grease Monkey® Franchise! The Grease Monkey platform guides franchisees through every aspect of running a profitable quick lube and preventive maintenance business!

How much does it cost to franchise an oil change?

Like all franchise opportunities, oil change franchises require an initial investment ranging from around $50,000 upward of several hundred thousand dollars. Of course, most people looking to start up a business wouldn’t be able to enter their chosen industry without funding from a moneylender.

Why do banks favor franchises?

Lenders calculate interest rates based on the likelihood that they'll see a safe return on their investment, and franchises often receive favorable rates because they're starting a business with the support of an established, proven partnership.

What is the most common type of service that car owners seek out?

Older cars require more maintenance, while more cars in general means more business for automotive franchise owners. 3. Oil changes are the most common type of service that car owners seek out. Oil changes account for 24% of services performed at automotive repair businesses.

Why do franchises survive?

Franchise businesses survive for much longer than indies because their business model has already been proven - there IS a demonstrable market need for the business.

How does an oil change business owner generate more revenue?

Those who serve their employees by giving them the proper tools, training and work environment earn better than those who simply “boss”. When a leader promotes and focuses on the role of the business, their driveways tend to fill and bottom lines also increase.

What is oil change business?

The oil change business is a personal service business similar to restaurants and resorts. Oil change shops are expected to sell convenience, confidence and ego gratification. There is a significant difference in the delivery, and showmanship is the key.

Why is it important to know what perception to groom in the oil change business?

Knowing what perception to groom in the oil change business is very crucial to the success of any oil change business, because any successful shop in the industry wants their customer to have confidence in what they do. Indeed the customer has absolutely no direct sensory input to convey the message.

How much does an oil change cost?

A simple oil change averages between $25 and $55. Most services at a quick oil change shop will cost under $100, but accessories and parts like windshield wipers provide excellent profit margins. With most franchises in the industry raking in nearly $250,000 a year, as the owner, it is possible to see a net profit of $75,000 to $80,000 a year.

How does location affect oil change business?

The location of an oil change business and the customers it attract will, without doubt, affects the bottom line of the business. Just like it was stated above, the most profitable areas are located at the edge of urban markets, as suburban families own more vehicles and will spend money on simple services.

Where is oil change most profitable?

The most profitable areas for this business are located at the edge of urban markets, as suburban families own more vehicles and will spend money on simple services. Rural markets have fewer customers, and some of those will want to change their own oil.

Do oil change bays increase operating income?

Any owner whose location and market can support the demand for additional bays should expect increase in operational income above the average, especially if their schedule is filled with appointments from open to close. To properly analyze the amount of profit an oil change business can make in the United States, these are factors to consider.

Choosing your location

Finding the right site is critical for your business. Grease Monkey works alongside you and local commercial real estate brokers to identify promising sites, evaluate their likely performance, and negotiate favorable terms.

Flexible Development Options

One of the ways we stand out from other franchise opportunities is that our construction and design plans are flexible, which allows you to take advantage of far more real estate opportunities (and potentially save time and money). That flexibility is especially valuable for multi-unit franchisees.

Opening your location

We will be there for your soft opening and your grand opening. We look forward to celebrating those victories with you! While you can read more about training a little lower on this page, rest assured that even after you and your team have been trained, we’ll be there to help.

Marketing Support

When you join Grease Monkey, you benefit from a growing brand that has been building relationships with customers for four decades. You also gain the support of a dedicated marketing team that manages sophisticated campaigns to drive business to your center.

Training Sets Us Apart

Some customers are nervous about taking their vehicles in to be serviced; women especially can be nervous about the automotive experience. We need to overcome that obstacle for our customers. We can, and we will show you how.

Ongoing Operations Support

Grease Monkey franchisees enjoy the support of dedicated franchise support directors who work with you when you have questions and who are available 24/7.

How much profit does an oil change make?

While an oil change in itself makes very little profit, the addition of extra services and parts for each customer raises the average profit margin up to 35% for services rendered per customer. Your technicians must walk the fine line between selling extra services just to make a buck vs. providing honest advice to your customers. In the long run, honesty will build a more loyal clientele that will be ready to pay for the extras.

What is an oil change business?

An oil change business keeps neighbors' cars maintained and on the road by offering regular services such as oil changes , windshield wiper replacement, and air conditioning recharging. Speedy service with a smile and competitive pricing encourages your customers to come back the next time.

How to market a garage?

Direct marketing campaigns that include a discount or coupon for your garage will help generate your initial flow of traffic. Since almost every automotive garage offers oil changes, price and speed will be key elements in driving customers to your door. Make sure that you are offering a good price, but one that also supports your business model.

How much does an oil change cost?

You will want to shop your competitors to ensure your price is appropriate to your neighborhood. A simple oil change averages between $25 and $55. Most services at a quick oil change shop will cost under $100, but accessories and parts like windshield wipers provide excellent profit margins.

Do you need a CO before leasing?

Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a oil change business. After a major renovation, a new CO often needs to be issued.

Do businesses have to pay sales tax?

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Is this Business Right For You?

If you enjoy working with cars, customers, and providing a valuable service to the community, this might be the right business opportunity for you. There is a sizable investment required to get off the ground, but with the right location, marketing, and constant hard work, it can be very rewarding.