In today’s world, where almost everybody owns a car, the demand for car maintenance services is very high, and it is not expected to decrease shortly.
Furthermore, vehicles are made to be more durable: this is also a factor that increases the demand for car repair and maintenance services.
Grease Monkey is a franchise that operates in this sector, and that makes it an excellent long-term investment.
Grease Monkey runs an excellent franchise program: they provide training and financial assistance, other than the possibility of becoming the owner of a Grease Monkey car repair center and exploiting a very well-known brand name.
If you want to know more about this franchise, you have just landed in the right place because we’re just about to discuss anything you need to know about the Grease Monkey Franchise.
About the Grease Monkey Franchise
Grease Monkey offers car maintenance services. They have over 360 locations in the United States and outside of it (China, Colombia, Mexico, and Saudi Arabia).
The company focuses on providing high-standard car repair services, but it is also constantly focused on its growth.
This is why their franchising program is one of the most reliable and successful.
They aim at establishing trust with their franchisees and a relationship through which both the franchisor and the franchisee can grow.
History of the Grease Monkey Franchise
The Grease Monkey company was founded in 1978. In the beginning, it operated as a subsidiary of Grease Monkey Holding Corporation.
In 2013, however, the Grease Monkey Holding Corporation was merged with Grease Monkey International, and the latter was the company that survived (the company as we know it today).
The franchise program started in 2013 when the company acquired LubePro’s International and its franchise contracts.
Since then, Grease Monkey International has grown exponentially, and today it can count over 360 locations in the United States and abroad.
You may also Check
Grease Monkey Franchise: Business model
Grease Monkey began its history by offering oil change services. With time it grew and became the full-service car repair provider that we know today.
They have a franchise program, and they are currently open to new franchise applications.
| Company name | Grease Monkey |
|---|---|
| Business Model | Franchise Car repair and maintenance |
| Initial Investment | $250,000 – $300,000 |
| Franchise | YES |
| Franchise Fee | $35,000 |
| Royalty fee | 5% |
| Ad royalty fee | 0.5% |
| Number of units | 360 + |
How much does it cost to launch a new Grease Monkey Business?
Launching a Grease Monkey business can be rather expensive. The investment is big because you need to set up a big car repair station, and you also need to pay the franchise fee.
The total initial investment is expected to be between $250,000 and $300,000.
This budget would include, on the one hand, the expenses due to the location, equipment, supply, hiring, and marketing campaign and, on the other hand, the franchise fee, which amounts to $35,000.
Other than the franchise fee, there are also ongoing fees you need to take into consideration.
They are a 5% royalty fee (calculated on your gross revenue and due each month) and a 0.5% advertising fee, also calculated on your gross revenue and due each month.
Grease Monkey Franchise: Requirements
To apply for the Grease Monkey franchise program, you need to demonstrate a net worth of $300,000 and available liquid cash of $50,000.
Furthermore, the Grease Monkey franchise program also requires potential franchisees to have prior business experience and a strong commitment to providing exceptional customer service.
Grease Monkey Franchise Revenue & Profit
Based on the weighted average sales of 141 franchises out of 85 franchise-owned centers operating in 2021, Grease Monkey franchise owner makes average revenue of $915,000 annually.
If we talk about the profitability of the Grease Monkey franchise, then corresponding to an EBITDA margin of 11%, the Grease Monkey franchise owner makes $97,000 in annual profits.
Since Grease Monkey offers detailed information about its financials, we were able to calculate its profit in the following manner:
| Profit-and-loss | Amount | % revenue |
|---|---|---|
| Revenue | $914,806 | 100% |
| COGS | $232,724 | 25% |
| Gross Profit | $682,081 | 75% |
| Retail Operating expense | $140,083 | 15% |
| Office and G&A expense | $33,328 | 4% |
| Salaries, wages and benefits | $302,280 | 33% |
| EBITDAR | $206,390 | 23% |
| Rent | $109,500 | 12% |
| EBITDA | $96,890 | 11% |
Grease Monkey Franchise: Terms of agreements and renewal
The length of the franchise contract can vary: you can discuss them with the company in the preliminary stages of the agreement.
As a consequence, the renewal fee – the one you need to pay at the end of your franchise contract if you want to keep operating with the same franchise – can also vary: it can go from 0 to $5,000.
Grease Monkey Franchise: Training and Support
The Grease Monkey franchise provides a comprehensive training program to its new franchisees.
The training program includes themes like site selections and negotiation, equipment, inventory and systems, management, accounting, financing, purchasing, and marketing and advertising.
Grease Monkey Franchise: Obligations and Restrictions
Other than quality standards, Grease monkey doesn’t set any particular obligations to their franchisees.
However, they recommend that in case the franchises can’t take part in the daily activity of their franchise, they designate a manager, and the manager should be approved by the main company.
Grease Monkey Franchise: Financial Assistance
Grease Monkey doesn’t provide direct financial assistance.
However, they collaborate with third-party firms that can provide funding to cover the start-up costs to set up and launch your new franchise business.
Grease Monkey VS Jiffy Lube
| Company | Grease Monkey | Jiffy Lube |
|---|---|---|
| Founded in | 1978 | 1971 |
| Franchise fee | $35,000 | $17,500 – $35,000 |
| Royalty fee | 5% | 4% |
| Initial Investment | $250,000 – $300,000 | $234,000 – $372,000 |
Conclusion
The Grease Monkey franchise is a great opportunity for entrepreneurs with a big budget.
The investment can generate large profits in a short time because the franchise operates in a sector for which the demand is very high.
The possibility of exploiting a well-known brand name and the support provided by the franchisor can make things easier for the franchisee, especially at the beginning of their business experience.
Grease Monkey Franchise: FAQs
Is Grease Monkey a franchise or chain?
Grease Monkey is a franchise, and they are currently open to new franchise applications. You can become the owner of a new Grease Monkey car repair unit.
Who is the owner of the Grease Monkey franchise?
John B. Adams is the current President and CEO of the company.
How many Grease Monkey units are currently there?
Grease Monkey can count over 360 locations in the United States and abroad.
Is the Grease Monkey Franchise a good investment?
Grease Monkey is a big but good investment. The factor that makes a business successful is its ability to fill a void in the market.
There are already many companies that answer to the need for car repair and maintenance services, but the demand is so high that there is still room for new businesses, especially when they are high quality, like Grease Monkey.
Is the Grease Monkey franchise worth it?
The big investment that the Grease Monkey franchise requires is worth it because you can expect a quick return on investment.
You won’t struggle to find clients because the brand is well known and because Grease Monkey operates in an industry that is growing.
The support and financial assistance provided by the franchisor will help you face your start-up costs and challenges so that you can start earning a big profit as quickly as possible.
Reference: Start a Grease Monkey Franchise, 2023 Costs & Fees (franchisegator.com); Grease Monkey (business) – 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.