SpeeDee Oil Change & Tune Up Franchise Costs $272K – $872K (+ 2024 Profits)

SpeeDee Oil Change & Auto Service® began its journey in December 1980 in Metairie, Louisiana, initially focusing on oil change services at a time when traditional service stations were in decline. Recognizing a growing demand for more comprehensive car care, the company expanded its services to include tune-ups by 1982, reflecting this in its name change to SpeeDee Oil Change & Tune-Up. 

This expansion continued over the years, and by the mid-1990s, SpeeDee had broadened its offerings further to include complete brake services and other auto maintenance and repair services, transforming into a full-service auto maintenance facility.

Now headquartered in Greenwood Village, Colorado, SpeeDee became a subsidiary of Grease Monkey International LLC in 2017, which has further bolstered its franchise network. 

Type of Expenditure	Amount
Initial Franchise Fee	$10,000 – $40,000
Lease and Real Estate	$14,000 – $36,000
Leasehold Improvements	$60,000 – $300,000
Utility Deposits, Licenses & Permits	$5,500 – $18,000
Insurance	$2,200 – $6,600
Equipment, Furniture, Tools and Installation	$69,000 – $200,000
Emissions (Smog) Analyzer (if Applicable)	$0 – $44,000
Office & Waiting Room Furniture	$3,000 – $11,000
Telephone System	$550 – $3,300
Grand Opening Costs	$10,000 – $10,000
Initial Inventory	$14,500 – $25,000
Signs	$13,000 – $35,000
Shipping & Installation Costs – Signage	$7,000 – $16,000
Supplies	$2,000 – $4,000
Initial Training Travel & Lodging Expenses	$2,500 – $5,000
Computer Hardware and Software and Shipping	$12,500 – $20,000
Point of Sale Maintenance Fee	$2,316 – $4,152
Professional Fees	$1,100 – $3,850
Miscellaneous	$2,200 – $11,000
Additional Funds (3 months)	$40,000 – $80,000
Total Estimated Initial Investment	$272,000 – $872,000

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 $10,000 to $39,900, payable when you sign the Franchise Agreement.

Royalty Fee

The royalty fee is the greater of $225 per week or a combination of 5% of Gross Revenues from brake products and services plus 6% of Gross Revenues from all other products and services.

Marketing/Advertising Fee

The Advertising Contribution is the greater of $225 per week or 6% of all Gross Revenues. This may increase to the greater of $265 per week or 7% of all Gross Revenues.

Transfer Fees

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

Renewal Fees

The renewal fee ranges from $0 to $5,000, depending on the franchisee’s notice period and agreement term selection at renewal.

Franchise pros and cons

The Pros:

• Site selection and real estate: The franchisor helps its franchisees identify a suitable location in terms of traffic and performance. It also helps them negotiate favorable lease terms and design and build their ideal businesses.
• Flexible development options: The franchisor offers its franchisees flexible construction and design plans to help them take advantage of available real estate opportunities. These include building a site from the ground up, buying or leasing an existing facility that has closed or converting an existing facility into a SpeeDee Oil Change & Tune Ups franchise. Franchisees can save time and money plus scale into multiple franchises.
• Marketing support: The brand has a dedicated marketing and advertising team that helps franchisees benefit from marketing campaigns, national and regional advertising, social media and local store promotional campaigns.
• Pre-opening training: The franchisor offers its franchisees 29 classroom hours and 43 on-the-job hours of training to prepare them to launch their lube centers successfully. In addition, it trains them about its system, customer experience, operations and mechanic skills.
• Passive investment opportunity: SpeeDee Oil Change & Tune Up presents its franchisees with an absentee ownership opportunity. Franchisees can run their franchises alongside their day jobs and other opportunities.
• Third-party financing: The franchisor provides its franchisees with third-party financing to cover the franchise fee, startup costs, equipment, inventory and payroll expenses.
• Multiple income streams: The parent company provides its franchisees several channels for offering customers excellent services which allows them to stand out from the competition. These include oil changes, tire sales and rotations, brake services, car washes and other ancillary services through multiple brands.

The cons:

• Not a home-based opportunity: The franchise cannot be operated from a home or a vehicle. Franchisees must have an office space, retail facility or a warehouse.
• No exclusive territory protection: The franchisor does not grant its franchisees the right to operate in an exclusive protected area. Franchisees may face competition from other franchises granted by the parent company or from competitive units it controls.
• Not a part-time business: The franchise cannot be run part-time. It has to be open full-time for at least 40 hours per week.
• Competition: similar companies such as Grease Monkey, Super Lube and Kwik Kar Marsh.

How to open a SpeeDee franchise

Opening a SpeeDee Oil Change & Tune Up 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 SpeeDee Oil Change & Tune Up franchise.

1. Research the Franchise

• Explore the SpeeDee Oil Change & Tune Up franchise opportunity to understand their business model, services offered, and market presence.
• Review their history, growth, and reputation within the automotive service industry.

2. Initial Inquiry and Application

• Submit an inquiry form available on SpeeDee’s franchise website to express your interest in the franchise.
• Complete any additional application forms required by SpeeDee to start the qualification process.

3. Review Franchise Disclosure Document (FDD)

• Obtain and thoroughly review the Franchise Disclosure Document (FDD) provided by SpeeDee.
• Understand all the financial obligations, operational requirements, and legal terms involved in opening and operating a SpeeDee franchise.

4. Financial Assessment and Arrangements

• Assess your financial capacity to meet the initial investment and ongoing operational costs associated with owning a SpeeDee franchise.
• Explore financing options if needed. SpeeDee may offer guidance on securing financing through third-party lenders.

5. Attend Discovery Day

• Attend a Discovery Day at SpeeDee’s headquarters or a designated location to meet the corporate team, gain deeper insights into the franchise operations, and clarify any doubts.

6. Site Selection and Approval

• Collaborate with SpeeDee’s real estate team to identify and secure a suitable location based on market research and territorial availability.
• Obtain approval for the selected site from the SpeeDee franchise team.

7. Sign Franchise Agreement

• Once the site is approved and financial arrangements are in place, sign the franchise agreement with SpeeDee.
• Pay the initial franchise fee and any other upfront costs as specified in the agreement.

8. Training Program

• Participate in SpeeDee’s comprehensive training program, which may include both on-site and classroom training modules.
• Training typically covers technical skills, customer service, operational procedures, and business management.

Disclaimer

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