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Automotive 1,721 Units

Jiffy Lube Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$230,000 – $403,000

Franchise Fee

$35,000

Royalty Rate

5.0%

Initial Investment Range

Low: $230,000 High: $403,000

The total initial investment to open a Jiffy Lube franchise ranges from $230,000 to $403,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $35,000.

Midpoint estimate: $316,500

Franchise Fee

$35,000

One-time initial fee

The Jiffy Lube franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Jiffy Lube brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

1.5%

of gross revenue

Total Ongoing Fee Burden: 6.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty 4.0 PCT 3% if paid on or before due date (prompt payment discount). Increases to 5% (or 4% with prompt payment) if Pacesetter or Fast Lubes Supply Agreement is terminated. 0% for first 6 months for new locations. 1% reduction on tire rubber revenue for Multicare service centers. Due on 15th day of each month based on prior month. First payment due 15th day of 7th month after opening.
National Advertising Fund (the "Ad Fund") Contributions 1.5 PCT See Item 11
Local/Cooperative Advertising 2.5 PCT Payable to cooperative. If cooperative not formed or amount paid is less than 2.5%, must be spent on local advertising. See Item 11
Minimum Advertising Requirement 4.0 PCT Annual expenditure requirement. Amount reduced by contributions to Ad Fund and cooperative advertising.
POS Support Charge 192.0 FIXED Will not exceed $192 per month per POS System installed, unless approved by TSAB or required under contract. Assessed per franchise entity basis.
Hardware Support 73.0 FIXED Currently $73.00 per month. Prices subject to change on 30 days' notice upon TSAB approval. See Item 8.
Data Delivery Service (optional) 200.0 VARIABLE $200 for 1-25 stores, $400 for 26-99 stores, $850 for >99 stores, plus operational and maintenance expenses. Prices subject to change on 30 days' notice upon TSAB approval. Optional service for aggregated transaction data.
Cisco Meraki Enterprise License Fee 18.0 FIXED License fee for all routers and access points at stores.
POS Related Equipment Lease 556.0 VARIABLE $312-$800 per month depending on store size, configuration and options. 3-year term lease. Current pricing in Exhibit L-1.
Transfer Fee 3500.0 FIXED $3,500 plus actual expenses. Due at time of transfer. No fee charged on transfer to family of deceased or incapacitated franchisee, or for non-controlling interest.
Renewal Fee 10000.0 FIXED $10,000 for renewal term, subject to adjustment using Consumer Price Index (1982-84 = 100 base year). Due at time of renewal.
Audit Expenses N/A VARIABLE Expenses incurred in auditing books or financial records. Only due if understatement of 2% or more of Gross Sales found during audit. Due when audit conducted.
Remedial Expenses N/A VARIABLE Amount specified if breach results in harm to Jiffy Lube brand, franchisor, or other franchisees. Due in connection with remedial plan. Could include additional advertising, mystery shopping, etc.
Training Expenses 75.0 FIXED Currently $75 per person for training program. Due at time of training. Franchisee also pays salaries and expenses of attendees. Web-based and instructor-led training available. See Item 11.
Product Testing Expense N/A VARIABLE Expenses for testing products franchisee wants to use that are not on approved list. Due at time of testing. See Items 8 and 11.
Fleet Processing Charge 1.25 FIXED Currently $1.25 per national fleet invoice billed by JLI. Deducted automatically from fleet credit issued. Fleet credits may reduce debts to franchisor and affiliates.
Auto Integrate Processing Charge 0.95 FIXED Currently $0.95 per fleet invoice automatically approved by Auto Integrate program. Due within 30 days of billing. Prices subject to change on 30 days' notice upon TSAB approval. Fleet credits may reduce debts.
Service Charges 2.0 PCT Lesser of (a) 2% per month or (b) highest rate permitted. Due when any obligation not paid when due.
Relocation Fee 7500.0 FIXED Due on signing New Construction or Conversion Addendum or Pacesetter Franchise Agreement. Applies if closing service center with franchisor consent. Conditions: at least 5 years remaining on term, new location qualifies as Relocated Center, may require termination of existing agreement.
Replacement Fee 12500.0 FIXED Due on signing New Construction or Conversion Addendum or Pacesetter Franchise Agreement. Applies if closing and replacing center(s) with franchisor consent. Conditions: at least 10 years remaining (or extension to 10 years), new location qualifies as Replacement Center, termination of existing agreement. Fee not uniformly applied.
BTS Development Reimbursement 25000.0 FIXED Due within 5 business days of notice to terminate Build to Suit Development Agreement. Applies if franchisee elects not to proceed with development at Preferred Site. See Article III of Exhibit J-2.

What You Get

Category

Automotive

System Size

1,721 units

Franchise Score

88

out of 100

Jiffy Lube is an automotive service franchise specializing in oil changes, fluid maintenance, and preventative car care services. The franchise offers quick, convenient maintenance services designed to keep vehicles running smoothly.

Financial Performance (Item 19)

Median Revenue

$1,014,460

per year, per location

Profitability Estimate

Estimated Owner Profit

$167,386

per year

Profit Margin

16.5%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 1.9 years

Based on midpoint investment of $316,500 and estimated annual owner profit of $167,386.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.7%

Low risk — below industry average

Net Unit Growth

-1950 units

From 2022 to 2025

Unit Activity History

Year Start Opened Closed Transfers End
2022 1950 +34 -10 1683
2023 1683 +52 -15 1710
2024 1710 +26 -14 1721
2025 +8

Is a Jiffy Lube Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Jiffy Lube franchise opportunity:

Overall Score

88/100

Strong opportunity

Est. Payback Period

1.9 yrs

Fast payback

Risk Level

Low

0.7% annual closure rate

Jiffy Lube scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,014,460 and a combined fee burden of 6.5% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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