How to Open a Jiffy Lube Franchise

If you have ever dreamed about owning your own U.S. business and have an interest in automobiles, you may want to consider opening your own Jiffy Lube franchise. Jiffy Lube has been providing quick-lube and other automotive services since...

Part 1 of 4:

Choosing a Location

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Analyze the market. This means doing research and then thinking carefully about whether you should open a Jiffy Lube franchise. There are several related questions that you should consider when analyzing the market. Are there many quick-lube locations in your area? If so, is the competition so stiff that you would have a hard time making a profit? Do they provide a level of quality and service that you could beat?
1. Who is most in need of Jiffy Lube services in your community? The very young? The very old? Men? Women? Use the government data available at https://www.sba.gov/starting-business/how-start-business/business-data-statistics/demographics to research information about the habits of your local population related to cars and driving.
2. Consult the small-business community in your area for more advice.
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Investigate local laws and regulations. Some areas are more business-friendly than others and may offer tax breaks and other incentives for small businesses. If you can locate your business in a community or area that encourages businesses like Jiffy Lube, do so.
1. Check your state or county department of commerce for information on how to better understand local regulations and succeed with your Jiffy Lube franchise.
2. The Small Business Development Center, Women's Business Center, and Better Business Bureau might be able to direct you to helpful resources for understanding local regulations. ^{[1] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source}
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Decide where to locate your business.^{[2] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source} With any business, location can be the difference between success and failure. If your business is hidden away or difficult to get to, it will hurt your bottom line. A prominent, centralized location where you will be visible and accessible to a large portion of the local population is the ideal spot for a Jiffy Lube. Use your market research and preliminary analyses to identify a viable location.
1. Place your Jiffy Lube in a low-crime area. Employees and customers should feel at ease while on the premises. Identify low-crime areas, and locate your business in one.
2. Your location should be accessible to your suppliers. You will need frequent shipments of oil, oil filters, and related auto parts. Be sure that your suppliers are within reach.
3. Think about zoning regulations. They determine what kind of building can be placed on a given plot of land. Consult your municipality's town-planning agency about how land is zoned in your area. Consider hiring a land attorney to walk you through the process and ensure your franchise is legally zoned.^{[3] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source}

Part 2 of 4:

Establishing the Franchise

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Calculate the start-up costs. Starting a Jiffy Lube franchise generally costs between $220,000 and $400,000, excluding real estate costs. ^{[4] X Research source} The cost of starting a Jiffy Lube depends on the economy, costs of construction, permitting costs, and materials costs in your area.
1. Your initial investment includes the franchise fee, first month's rent and security deposit, equipment, signs and fixtures, initial inventory, opening marketing expenses, insurance, training expenses, and enough funds to cover bills for the first six months. ^{[5] X Research source}
2. Converting an existing quick-lube shop into a Jiffy Lube will cost less than opening one from scratch, since you'll already have the necessary space, permits, tools, staff, and materials to run such a shop.
3. Don't forget to anticipate state taxes on income, property, and sales. ^{[6] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source}
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Understand the ongoing fees associated with operating a Jiffy Lube franchise. Jiffy Lube levies a 3% fee on the earnings of all franchise operators. ^{[7] X Research source} Known as a royalty fee, this means that if you make $100,000 during your first quarter, you'll have to pay $3,000 to Jiffy Lube in order to continue using their brand name and services.
1. Additionally, there is a 1.5% fee levied on all ads.
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Evaluate your finances. Individuals who want to open a Jiffy Lube franchise should have a net worth of at least $450,000, and liquid assets of about $150,000. ^{[8] X Research source} If this doesn't describe you, opening a Jiffy Lube franchise might not be a suitable option.
1. After looking at the costs associated with start-up, you might choose to move forward with your plan to franchise a Jiffy Lube by securing financial assistance from outside sources such as a bank.
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Request more information. If you have specific concerns about opening a Jiffy Lube franchise, address them directly to Jiffy Lube. Use the online information request form at https://www.jiffylube.com/become-a-franchisee. Enter your name and mailing and e-mail addresses along with your question(s), and someone will contact you.
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Sign an agreement to open a Jiffy Lube franchise. The terms of the contract you sign allow you to run your franchise location for a period of 20 years. After that you have the option of renewing or extending your franchise agreement for another10-year period. ^{[9] X Research source}
1. Jiffy Lube will agree not to open any other stores within three miles of your location.
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Obtain financial assistance. If you need financial help getting your franchise going, you have a few options available. Jiffy Lube itself offers two forms of indirect assistance. One is through FranFund, Inc., a loan broker. Loans through FranFund are contracted directly through them. SOPUS Products, the company that owns Jiffy Lube, also offers financing programs for Jiffy Lube franchisees. Contact SOPUS Products for more about their financing.
1. Additionally, many lenders, brokers, and equipment-leasing companies are familiar with the Jiffy Lube brand and will give you favorable rates when extending loans for your franchise. ^{[10] X Research source}

Part 3 of 4:

Receiving Training and Support

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Complete the training required to open a franchise location. Jiffy Lube requires about three weeks of training before you can open your store. ^{[11] X Research source} Both you, as the franchisee, and your day-to-day decision maker must be in attendance at training sessions. If you are developing the franchise as a corporation, the leading officers must be in attendance as well.
1. The training will cover various aspects of opening and operating the franchise. Key concepts that will be developed in training include understanding operations, brand management, and customer satisfaction.
2. You will be trained in Jiffy Lube's procedures regarding health, safety, security, and environmental protocols.
3. During your time as a franchisee you will need to attend other training sessions intermittently to keep your training up-to-date. If you bring on new partners or managers, they will have to be trained as well.
4. Training must be renewed every five years. ^{[12] X Research source}
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Receive ongoing support. As you go into operation as a Jiffy Lube franchisee, you will encounter challenges along the way. Jiffy Lube has an extensive network in place to help you grow your business and answer questions you may have. For instance, they have support available to help you make the most of your grand opening. You will always be able to use Jiffy Lube's website and toll-free line to request assistance or advice about running your business. ^{[13] X Research source}
1. Read the Jiffy Lube newsletter for updates about the market.
2. Jiffy Lube also offers advice about day-to-day operations and purchasing.
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Receive marketing support. Even before you open, you'll want to let people know where you are and what you will be able to do for them. Jiffy Lube offers support for advertising at both regional and national levels. ^{[14] X Research source} Contact Jiffy Lube to find out more about how you can secure the largest possible share of your local market.

Part 4 of 4:

Developing the Skills Necessary to Own a Franchise

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Develop interpersonal skills.^{[15] X Research source} This is extremely important when dealing with the public and with your own employees. You want your customers to be satisfied with your service, and you want your employees to feel that their concerns are taken seriously.
1. An important part of developing strong interpersonal skills is the ability to motivate people. Find out what your employees want and need at work, and find ways to make their jobs easier and more enjoyable.
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Learn to work within the established system. ^{[16] X Research source} When you open a Jiffy Lube franchise, you can't just run it however you want. You will have to follow specific guidelines laid out by Jiffy Lube in order to maintain the brand's reputation. Customers who are familiar with Jiffy Lube and other quick-lube franchises, too, will be attracted to your business in part because they like the Jiffy Lube way of doing things. Therefore, following established Jiffy Lube procedures is an important part of operating the franchise.
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Be invested in the business. The most successful franchise operators are those who are involved in day-to-day operations.^{[17] X Research source} You should know your staff and customers and understand the business generally. While it is important not to micro-manage your franchise's affairs, neither should you leave everything to managers without providing a steady vision, guidance, and decision-making when necessary.

franchise business

Isabella Humphrey

Update 24 March 2020

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