Strickland Brothers Franchise Costs $218K – $1.9M (+ 2024 Profits)
Strickland Brothers 10 Minute Oil Change is a rapidly growing franchise in the quick lube and automotive maintenance industry, founded in 2016 by Justin Strickland. The company is headquartered in Winston-Salem, North Carolina, and has swiftly expanded its presence across the United States.
Strickland Brothers specializes in providing fast and friendly oil change services and a variety of other maintenance services, distinguishing itself with a drive-thru model that emphasizes speed and customer service. The franchise started its franchising operations in 2020 and has seen remarkable growth due to its efficient service model and competitive investment costs.
Strickland Brothers appeals to franchisees by offering a streamlined operational process that allows for oil changes to be completed in just 10 minutes, setting it apart from competitors that often require more time-consuming service models. This efficiency not only improves customer satisfaction but also increases the volume of services a franchise can perform.
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Initial investment
Here’s what you can expect to spend to start a Strickland Brothers 10 Minute Oil Change franchise.
| Type of Expenditure | Amount (Ground Lease Option) |
|---|---|
| Initial Franchise Fee | $54,900 |
| Travel and Living Expenses While Training | $2,500 – $10,000 |
| Equipment, Tool Package | $30,000 – $60,000 |
| Equipment Installation | $0 – $50,000 |
| Building Construction | $300,000 – $900,000 |
| Site Work | $150,000 – $300,000 |
| General Construction Fees | $70,000 – $300,000 |
| Construction Managers | $0 – $50,000 |
| Due Diligence Items | $30,000 – $50,000 |
| Furniture and Décor | $2,500 – $8,500 |
| Computer and POS System | $10,000 – $15,000 |
| Grand Opening Advertising | $20,000 |
| Inventory and Supplies | $20,000 – $25,000 |
| Insurance | $2,000 – $5,000 |
| Signage | $15,000 – $35,000 |
| Additional Funds (3 months) | $50,000 |
| Total Estimated Initial Investment | $757,000 – $1,933,000 |
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.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The Initial Franchise Fee is $54,900, fully earned by the Franchisor upon the signing of the Franchise Agreement and is non-refundable.
Royalty Fee
Franchisees must pay a Royalty Fee of 6% of Gross Revenues each month.
Marketing/Advertising Fee
The Local Marketing Requirement for the franchise mandates a payment of 2.5% of Gross Revenues per month, which is utilized for local marketing, advertising, and promotional activities within the franchise territory.
Technology Fee
The Technology Fee is $395 per month, subject to increases with 30-days written notice.
Lease or Rent Fee
Costs vary based on the development model chosen (owning real estate, ground lease, etc.), and include initial investments like real estate deposits and construction costs.
Transfer Fees
A Transfer Fee of $20,000 is required before any transfer of the franchise.
Renewal Fees
The Renewal Fee is either $15,000 or 25% of the then-current Initial Franchise Fee, whichever is greater.
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Franchise pros and cons
The Pros:
- Real estate and site selection: Strickland Brothers 10 Minute Oil Change offers its franchisees site selection assistance to identify a viable location. In addition, it helps them with the designs, lease negotiations, and development of their centers.
- Comprehensive training program: The franchisor provides its franchisees with a detailed training program consisting of 65 on-the-job and 25 classroom hours. It trains them on the business concept, vehicle inspection, customer service, and sales, among others.
- Marketing and advertising: The franchisor offers its franchisees effective marketing and promotional solutions to reach a wider market area. Franchisees get access to ad templates, social media, national media, regional advertising, and email marketing, among other programs.
- Exclusive territory protection: The franchisor allows its franchisees to operate in an exclusive development market. The franchisor or its affiliates do not operate a competing business or license any other franchise in the protected area.
- Third-party financing: Strickland Brothers 10 Minute Oil Change provides its franchisees with financing assistance through third-party recommendations. This covers the franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll.
- Absentee ownership: The franchise presents franchise owners with a passive investment opportunity. Franchisees can operate their centers through managers and concentrate on offering better services.
The Cons:
- Not a B2B business: The franchisor requires its franchisees to have their facilities open full-time.
- Not a mobile-based opportunity: The franchise cannot be run from home or a vehicle. Franchisees need an established office space, retail facility, or warehouse to operate from.
- No international presence: The brand does not have locations outside the US. It may be difficult to penetrate international markets.
How to open a Strickland Brothers franchise
Opening a Strickland Brothers 10 Minute Oil Change 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 Strickland Brothers 10 Minute Oil Change franchise.
1: Initial Research and Inquiry
- Understand the Business: Learn about Strickland Brothers 10 Minute Oil Change, its services, and its market position.
- Contact Strickland Brothers: Reach out through their official website to express interest and request more detailed franchising information.
2: Application Process
- Submit an Application: Complete the franchise application form provided by Strickland Brothers to start the formal evaluation process.
- Attend Discovery Day: Participate in a Discovery Day to gain a deeper understanding of the franchise operations, meet the franchisor team, and discuss potential locations.
3: Review Franchise Disclosure Document (FDD)
- Receive and Review FDD: Obtain and carefully review the Franchise Disclosure Document, which includes detailed information about the franchise costs, obligations, and the support provided.
- Consult with Professionals: It is advisable to consult with a franchise attorney and a financial advisor to ensure you fully understand the FDD and all related legal and financial implications.
4: Financial Planning and Approval
- Secure Financing: Determine your financing strategy to cover the initial franchise fee and other startup costs. Strickland Brothers may offer financing options to help with the investment.
- Approval Process: Once your financial plan is approved and you agree to all terms, sign the franchise agreement to become an official Strickland Brothers franchisee.
5: Training and Setup
- Undergo Training: Participate in Strickland Brothers’ comprehensive training program, which includes both technical and customer service aspects of the business.
- Establish Your Location: With guidance from Strickland Brothers, choose a suitable location and set up your service center in accordance with their brand guidelines.
Disclaimer
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