When considering the opening of a new franchise, various factors must be taken into account. Costs, including franchise fees, are only some of the elements that require analysis.
One of the most crucial considerations is the type of business being launched: does it meet market demand?
Is there a high demand for the products or services being offered? Is the business targeting a specific niche?
Express Oil Change ticks all the boxes in this regard. It is reasonably priced, caters to a specific niche, and there is a high demand for the services it provides.
In a country where almost every individual owns a vehicle, Express Oil Change offers oil change and car maintenance services.
The Express Oil Change franchise program is outstanding and allows individuals to start a new business under a well-established brand name.
Read on to learn all you need to know about the Express Oil Change franchise.
About Express Oil Change Franchise
The Express Oil Change franchise has a unique business model: they provide an oil change service in 10 minutes while the customers wait inside their cars.
This was, at least, the original main activity performed by Express Oil Change operators; with time, the type of service the company provides has evolved, and today they can offer full maintenance services.
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History Of Express Oil Change Franchise
The Express Oil Change company was founded in 1979 in Birmingham.
As we’ve mentioned, the business started as a provider of a quick oil change service: people who needed oil changes for their cars could hire Express Oil Change to have the quickest service, even while they were waiting inside their cars.
With time, Express Oil Change widened its offer of services: today, they no longer offer only the oil change service but also tire change and mechanical full-service on vehicles.
In 1984, Lunvefors – the founder of the company – decided to start franchising.
The story of the company continued with various acquisitions that allowed it to keep growing. The growth was such that, in 2022, they could count 322 locations.
These locations, however, aren’t all franchised: 264 locations are owned by the company (they are corporate), while the remaining 58 are franchises.
Express Oil Change: Business model
Express Oil Change is a company active in the sector of car maintenance, and it is open to franchises.
They have many units operating throughout the United States, but not all of them are franchises: some are corporate, and some are franchised.
| Company name | Express Oil Change |
|---|---|
| Business Model | Car-service provider |
| Initial Investment | $200,000 |
| Franchise | YES |
| Franchise Fee | $35,000 |
| Royalty fee | 5% |
| Ad royalty fee | 3% |
| Number of units | 58 (franchised) |
How Much Does It Cost To Open An Express Oil Change Franchise?
Starting a new Express Oil Change franchise can be rather expensive because you’ll need to set up an entire car-service provider unit.
The total initial investment can be estimated at $200,000. Of this, $35,000 is due as a franchise fee, and the remaining money will be invested in the location (rent and setup), equipment and supply, and marketing.
The franchise fee isn’t the only fee that is required by Express Oil Change: there is also a 5% royalty fee and a 3% ad royalty fee. These percentages are calculated on your gross revenue.
Express Oil Change Franchise Revenue & Profit
The revenue and profit of different Express Oil Change franchise owners could be different depending on the location of their outlet, its size, demand, etc.
But on average, an Express Oil Change franchise owner makes $1,609,000 in annual revenue.
You must note that this data is based on the sales of 54 franchises that were operating in the year 2021.
Express Oil Change franchise: requirements
Express Oil Change requires a net worth of about $500,000 and liquid cash of about $350,000.
As you can see, requirements are rather limiting: not everyone has this type of capital at their disposal. If it fits your budget, however, this can be a great investment.
Express Oil Change franchise: Terms of agreements and renewal
The franchise contract with Express Oil Change lasts for as long as you pay the royalty fees. There is no renewal fee.
Express Oil Change Franchise: training and support
You can start an Express Oil Change franchise even if you are not an engineer or a mechanic.
The company offers an 8-week training program to their new franchisees, which provides all the information they need to carry out their franchise activity.
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Express Oil Change Franchise: Obligations and Restrictions
When you start an Express Oil Change franchise, you can open your car-service business activity and exploit the Express Oil Change brand name.
There are no strict restrictions for franchisees, but always make sure to read your franchise contract carefully.
Express Oil Change: Financial Assistance
Express Oil Change franchise does not provide direct financial assistance.
However, they can provide third-party financial assistance through external firms that can offer funding to assist franchisees in setting up their new franchise business.
Express Oil Change VS Auto Appraisal Network
| Company | Express Oil Change | Auto Appraisal Network |
|---|---|---|
| Founded in | 1979 | 1989 |
| Franchise fee | $35,000 | $16,700 |
| Royalty fee | 5% | None |
| Initial Investment | $200,000 | $20,000 |
Conclusion
The Express Oil Change franchise isn’t the cheapest franchise available. It’s a big investment and, like all big investments, it can generate great profits.
Owning a franchise, the initial expenses can be higher, but the road to success would be smoother and shorter.
Express Oil Change: FAQs
Is Express Oil Change a franchise or chain?
Express Oil Change is a franchise. It’s open to franchise applications, but it also opens new units directly.
As a result, some of the Express Oil Change is corporate; some are franchises.
Who is the owner of Express Oil Change?
Jim Durkin is the current president of Express Oil Change, while Richard Brooks is the current CEO.
How many Express Oil Change units are there?
There are 322 locations in the United States, of which 264 are corporate, while 58 are franchises.
Is Express oil Change a Good Investment?
Express Oil Change is considered a good investment because the brand is well known, and you’ll have no difficulties conquering your first clients.
Furthermore, there is always a high demand for the type of services this business provides, and this guarantees longevity for the business.
Is the Express Oil Change franchise worth it?
The initial investment required to start a new Express Oil Change franchise is rather high.
However, it is still considered worth it because you can generate high profits.
Furthermore, you can obtain funding for your franchise business to assist you at the beginning of your career.
With a brand name so well known and market demand so high, this franchise is 100% worth it.
Reference: Express Oil Change Franchise – How To Open, Cost & Profit (startupback.com); Express Oil Change & Tire Engineers – Wikipedia
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.