Partnering with an oil change franchise is one way to enter the competitive automotive industry without going it alone. Moreover, you have multiple options because there are a lot of reputable automotive franchises out there. Oil change and routine auto maintenance businesses do well because thereโs regular demand, and you can upsell additional services. Studying the market will give you a better idea if this is your next venture.
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Overview of the Market
Market research shows that industry revenue for the US oil change services market has grown 2.4% annually over the past 5 years, reaching $10.8 billion in 2024. An oil or quick lube franchise is part of the lucrative automotive industry, where you can start a business with the support of an established brand.
The growth of oil lube franchise opportunities is thanks to the demand for regular vehicle maintenance. People need this service to keep their car engines clean, cool, and working well. Most vehicles need an oil change every few thousand miles, so investing in a quick lube franchise will attract a steady stream of customers. Moreover, car ownership is on an upward trend. Reports say that 91.7% of US households can access at least one vehicle.
Oil change franchises typically operate under well-known brands such as Jiffy Lube, Valvoline Instant Oil Change, and Take 5 Oil Change. These brands offer brand recognition, a loyal customer base, and a proven business model. The automotive industry has lots to offer. Other opportunities include:
Independent Business Versus Oil Change Franchise
The next big question is whether you should become a franchisee or go it alone. Starting an oil change business independently versus joining a franchise is a big decision. Here are some important points to bear in mind:
Independent Business
- You wonโt need to pay franchise fees or ongoing royalties. You can also choose your own suppliers, location, and equipment based on your budget.
- You shape your brand identity, marketing, and customer experience. This allows you to stand out and build a unique brand.
- Take complete control over your business operations, including service offerings, pricing, and how you run your shop.
- Without franchise support, youโll need to learn the business on your own, which can be tough if you donโt have experience in the automotive industry.
- Starting independently carries more risk. Youโll need to build everything from scratch, and your businessโs success largely depends on your drive and determination.
Oil Change Franchise
- Joining a franchise gives you instant brand recognition. Well-known franchises often have a loyal customer base, which can drive traffic to your location from day one.
- Franchise businesses typically come with established systems and processes that are tried and tested. This can reduce the risk of mistakes and financial setbacks.
- Franchises have strict operational guidelines, which you must follow. This can limit your flexibility regarding services, pricing, and how you run your business. On the upside, these standardized processes are optimized for efficiency and profitability.
- Franchises offer a lower-risk entry into the market, as youโre working with a proven business model. The support and resources provided by the franchisor can also reduce the chances of failure.
- Franchises often offer multi-unit ownership opportunities, making it easier to expand once your first location is successful. The franchise system provides a scalable model, making growth more manageable if you have ambitious plans for the future.
Other Factors to Consider
Research different franchise opportunities before jumping into the oil change business. If you love cars, youโre not confined to one sector. Options range from car wash franchise opportunities to an auto glass repair franchise.
Equally important, look at express oil change franchise cost. This type of franchise usually has lower startup costs than some automotive businesses. However, itโs still a significant investment. Other factors to consider include:
- Employees: Youโll need to hire and train technicians and a customer service someone. You may also need to manage employee turnover. Statistics show that although the oil change services industry makes billions, its workforce is declining.
- Time factor: This type of franchise is typically easier to run than a full-service auto repair franchise, but you still need to manage inventory, equipment, etc. Make sure you have enough time to handle the day-to-day operations.
- The success of an oil change business often depends on its location. High-traffic areas near shopping centers, busy roads, or residential neighborhoods are ideal. Ensure the franchisor helps with site selection and has criteria for choosing profitable locations.
Opportunities and Oil Change Franchise Cost
Here are some brands looking for hard-working entrepreneurs to make a go of this business opportunity. The franchise cost varies with a significant amount going towards land and real estate unless itโs a mobile business.
- Valvoline Instant Oil Change has grown its brand since 1986 with 1,700 stores nationwide. Its award-winning training program will help you understand your customers and grow your business. The initial investment is $193,000 to $3.5 million.
- Take 5 Oil Change offers drive-through oil change services in over 500 locations in 18 states. Your customers remain in their vehicles while technicians do the oil change. Speed and convenience are key factors in the brandโs success. The initial investment is $223,000 to $1.6 million.
- Jiffy Lube isnโt just a quick lube franchise. In business since 1979, the brand also offers preventative auto maintenance like tire rotations, brake services, and more. Initial investment is $232,000 to $443,000.
- Strickland Brothers 10 Minute Oil Change also offers routine auto maintenance as well as a speedy oil change. Founded in 2016, it doesnโt have the same brand recognition as Jiffy Lube and Valvoline but it is expanding across the US. The initial investment is $218,000 to $1.9 million.
- Grease Monkey has single-unit and multi-unit opportunities available throughout the US. You can also convert your independent oil change business to the Grease Monkey brand. International franchising is also an option. The initial investment is $252,000 to $821,000. The company also has franchise opportunities for veterans.
- Costa Oil has been doing the 10-minute oil change since 2014. It is also one of the absentee owner franchises if you are looking for investment opportunities rather than hands-on business experience. The initial investment is $156,000 to $1.9 million.
- Dipstx Mobile Oil Change is one of the mobile oil change franchises. So, you donโt have to invest heavily in real estate. The initial investment is $54,000 to $106,000. It is one of the low cost franchise opportunities compared to some of the others in this sector.
- Go Oil is another mobile oil franchise taking the oil change to the customer. The company offers franchisees a pre-built and fully equipped service van, so youโll be ready to do business as soon as you get the keys. The initial investment is $23,000 to $56,000.
- Mobil 1 Lube Express prioritizes speed with an express oil change. It also targets local and national fleet providers. Visit the company website for an overview of its business program and more information on the Mobil 1 Lube Express franchise cost.
- Express Oil Change & Tire Engineers offers oil changes and a comprehensive range of auto services from tire repair to a transmission flush. Founded in 1979, it ensures its locations have a population of at least 20,000 within three miles. Express Oil Change franchise cost is $1.9 million to $2.7 million.
Boost Profits With Additional Services
If you want to maximize your quick lube franchise opportunities, think of additional services. If you employ trained mechanics, they can do more than change oil. For example, here are some of the services you could offer:
- Fluid checks and top-offs. For example, transmission fluid, brake fluid, and power steering fluid.
- Air filter replacement.
- Tire services โ tire rotation, balancing, tire pressure checks and adjustments.
- Battery services.
- Brake pad replacement.
- Alignment services.
- Windshield chip repair, similar to an auto glass repair franchise.
- Detailing services.
With a one-stop shop for everything a vehicle owner needs, your customers will increase, boosting your profits. Itโs also a great way to stand out from your competitors! If youโre not convinced the oil change business is for you, check out which industries are most likely to franchise across different markets or a work from home franchise.
Conclusion
To sum up, there are lots of oil change franchises looking for hard-working entrepreneurs to make a go of this business opportunity. If you think this could be you, study each franchise carefully. For example, the quick lube business model based on a 10-minute oil change and โno appointment necessaryโ plays a big part in marketing the big brands. The popular stay-in-your-car business model and the 10-minute turnaround meet customer demand for a quick, hassle-free service, which can drive repeat business.
Equally important, although oil changes will bring in money, itโs a comprehensive service offering where you turn things around.
Regarding oil change franchise cost, starting a mobile business is more affordable than buying or leasing real estate. Bear in mind that there are other exciting mobile businesses to explore. You can start a mobile car wash when you partner with DetailXPerts. Our eco-friendly business model takes the car wash to the customer, using water-saving steam cleaning technology for a greener clean.