How to Open a Jiffy Lube Franchise
Jiffy Lube was founded in 1979 by Jim Hindman with seven locations in the western part of the United States. Today, Jiffy Lube is owned by the Pennzoil-Quaker State Company and has thousands of franchises all over United States and Canada.
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Instructions
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Call Jiffy Lube's franchising office to discuss opportunities in your state and decide if you are eligible to apply. They will send you an application to fill out if they decide that you qualify.
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Fulfill Jiffy Lube's requirements. You must have a net worth of at least $450,000 (without including your personal residence), cash liquidity of $150,000, general business experience and management ability. You must also commit to a twenty-year renewable agreement.
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Understand that you will need a total investment of $214,000 to $273,000 to start your franchise, including an initial franchise fee of $35,000.
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Apply for a business loan from the Small Business Administration (SBA). The SBA reports that out of the 16 loans for Jiffy Lube stores taken out through the SBA since 2001, 6.25% have failed to pay back the loan. The SBA has not completely charged off anyone who has received such a loan.
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Know your yearly costs. You will need to pay Jiffy Lube 5% of all royalties on top of an annual $17,500 fee.
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Receive two to four weeks of training at the Jiffy Lube headquarters before opening your store. You also will receive additional training in your store.
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Receive ongoing support in the way of newsletters, company meetings, a toll-free help phone line, Internet assistance, a grand opening, and security and safety procedures. Field operators will also evaluate your store. You can participate in co-op advertising, receive national media exposure and you'll be provided with reminder mailings to current customers for tune ups and oil changes.
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Tips & Warnings
Jiffy Lube was ranked #7 in a list of best franchises by "Entrepreneur" magazine in the "Franchise 500 rank" in 2007.
You may hire a manager to run the shop for you. However, 90% of franchises are owner-operated.
80% of Jiffy Lube franchise owners own more than one.
