Grease Monkey Franchise Costs $246K – $762K (+ 2024 Profits)

Grease Monkey International, Inc., founded in 1978 and headquartered in Greenwood Village, Colorado, is a distinguished name in the automotive service industry, specializing primarily in automotive oil change and maintenance services.

As the nation’s largest independent franchisor of automotive oil change centers, Grease Monkey has established a significant presence across the United States, Latin America, and China​​. Grease Monkey began franchising the same year it was founded, quickly gaining recognition for its streamlined and customer-focused service model.

This model is highlighted by the “Less Hassle, More Hustle” customer service philosophy, which ensures quick and efficient service, helping customers meet their vehicle manufacturers’ recommendations and warranty requirements without pressure. The franchise offers a variety of services including oil changes, preventive maintenance, and light mechanical repairs​.

Type of Expenditure	Amount
Initial Franchise Fee	$10,000 to $40,000
Lease and Real Estate	$14,000 to $50,000
Leasehold Improvements	$60,000 to $300,000
Equipment, Furniture, Tools and Installation	$75,000 to $246,000
Grand Opening Costs	$10,000
Initial Inventory	$15,000 to $25,000
Signs	$10,000 to $35,000
Supplies	$2,000 to $4,000
Initial Training Travel & Lodging Expenses	$2,500 to $5,000
Total Estimated Initial Investment	$255,000 to $821,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee ranges from $20,000 to $39,900, payable in full when signing the Franchise Agreement. This fee is nonrefundable.

Royalty Fee

The Royalty Fee is 6% of Gross Revenues, due on the 10th day of each month. This fee is for the use of the brand’s marks and intellectual property.

Marketing/Advertising Fee

The Advertising Contribution is 0.5% of Gross Revenues, contributing to the brand’s marketing efforts.

Transfer Fees

The Transfer Fee is $5,000, with a $1,000 nonrefundable deposit at the time of transfer application submittal and the remainder due at the time of the approved transfer.

Renewal Fees

The Renewal Fee ranges from $0 to $5,000, depending on when the franchisee signs the then-current Franchise Agreement. The fee is waived for franchisees who provide notice of renewal at least six months prior to the expiration of their current Franchise Agreement and choose to enter a new 15-year term agreement.

Franchise pros and cons

The Pros:

• Tremendous franchise support: the franchisor will work with local and commercial real estate brokers to help franchisees choose the best location and negotiate the leasing terms. 
• Intensive, hands-on training: 66 hours of on-the-job training, 35 hours of classroom training and annual regional meetings ensure franchisees are well prepared to start and run a thriving business. 
• Ongoing support: franchisees enjoy ongoing help from dedicated support directors available 24/7 to answer any questions. 
• No background in the auto industry: franchisees don’t need any specific experience or background to operate a Grease Monkey franchise.
• Territory protection: the franchisor offers exclusive territory rights to protect business owners from competition against other Grease Monkey franchises. 
• Multiple income streams: franchisees get income from the sale of auto products, preventive vehicle maintenance services and the option to add a car wash to their facilities.
• Financial support: the franchisor has preferred relationships with several banks and financial institutions to help franchisees cover the startup costs, franchise fees, inventory, payroll and equipment. 
• Allows absentee ownership: passive ownership is an option for Grease Monkey franchise owners. However, franchisees must ensure the brand operates effectively and that the unit managers are properly trained and equipped to handle the day-to-day operations. 

The Cons:

• Not part-time operations: Grease Monkey franchise can’t be operated part-time or as a side hustle. 
• Can’t be operated from home/as a mobile unit: franchisees must operate from designated warehouses. 
• Minimum employee requirement: franchisees need a full-time manager and 8-10 employees to run a Grease Monkey franchise. 
• Competition from other oil change franchises such as SpeeDee Oil Change & Tune Up, Valvoline Instant Oil Change or Take 5 Oil Change to name a few.

How to open a Grease Monkey franchise

Opening a Grease Monkey franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Grease Monkey franchise.

1. Explore the Opportunity

• Research Grease Monkey to understand their business model, services offered, and franchisee support system.
• Visit the official Grease Monkey franchise website to gather initial information and contact the franchise team to express your interest.

2. Initial Inquiry and Qualification

• Fill out an inquiry form provided by Grease Monkey to initiate contact.
• Participate in initial discussions with a franchise representative who will provide details on the financial requirements, operations, and potential territories.

3. Review Franchise Disclosure Document (FDD)

• Obtain and carefully review the Franchise Disclosure Document (FDD) which provides in-depth information about the franchise opportunity, financial performance of existing units, and legal obligations.
• Consult with a franchise attorney to better understand the terms of the FDD.

4. Secure Financing

• Assess your financial resources against the investment requirements detailed in the FDD.
• Explore financing options if necessary; Grease Monkey may offer guidance on securing financing through preferred lenders or you may qualify for third-party loans, including SBA loans.

5. Site Selection and Approval

• Work with Grease Monkey’s real estate team to identify and approve a suitable location based on market research and territory availability.
• Consider factors such as traffic flow, local competition, and demographic suitability.

6. Training and Preparation

• Undergo comprehensive training provided by Grease Monkey which covers all aspects of running a franchise, from operational practices to customer service.
• Training often includes both classroom instruction and hands-on experience at an existing location.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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