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SpeeDee Oil Change & Auto Service Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for a SpeeDee Oil Change & Auto Service Franchise?
To open a SpeeDee Oil Change & Auto Service franchise, you will need to consider an initial investment that ranges from $265,626 to $872,142. This includes a franchise fee of $39,900. Additionally, expect ongoing costs such as a royalty fee of 5% of your revenue and a marketing fee of 6%. You should also have cash reserves between $60,000 and $150,000, and a net worth of $300,000 to $500,000 to qualify for franchise ownership.
What Is the Average Revenue Potential for a SpeeDee Oil Change & Auto Service Franchise?
Investing in a SpeeDee Oil Change & Auto Service franchise can be financially rewarding. The average annual revenue per unit is approximately $1,486,683, with a median revenue of $1,710,300. Revenue can vary significantly, with the lowest annual revenue reported at $463,211 and the highest at $3,241,161. This potential for high revenue makes it an attractive option for aspiring franchisees looking to enter the automotive service market.
How Quickly Can You Expect to Break Even with a SpeeDee Oil Change & Auto Service Franchise?
Franchisees can anticipate breaking even within approximately 12 months of operation. This quick return on investment is appealing, especially considering the investment payback period is around 21 months. With effective management and a strong customer base, franchisees can start seeing profits relatively soon after opening their locations.
What Are the Operating Expenses for a SpeeDee Oil Change & Auto Service Franchise?
Operating a SpeeDee Oil Change & Auto Service franchise involves several key expenses. On average, total operating expenses amount to about $707,851 annually, which is roughly 47.6% of revenue. Major costs include salaries, wages, and benefits totaling $201,108, along with retail operating expenses of $100,571. Understanding these expenses is crucial for franchisees to effectively manage their financial performance and ensure profitability.
SpeeDee Oil Change & Auto Service Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
SpeeDee Oil Change & Auto Service Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 69 | 81 | 78 |
| Net Change YoY | 12 | -3 | |
| Franchised Units | 68 | 72 | 69 |
| Net Change YoY | 4 | -3 | |
| Corporate Units | 1 | 9 | 9 |
| Net Change YoY | 8 | 0 |
Investment Overview
SpeeDee Oil Change & Auto Service offers a franchise opportunity with a low initial investment starting at $265,626 and going up to $872,142. The initial franchise fee is $39,900, with ongoing royalty and marketing fees set at 5% and 6% of gross sales, respectively. Prospective franchisees should have a cash reserve of $60,000 to $150,000 and a net worth of $300,000 to $500,000 to qualify for ownership.
Financial Performance
The average annual revenue for a SpeeDee unit is $1,486,683, with a median revenue of $1,710,300. Franchisees can expect a breakeven time of approximately 12 months and an investment payback period of about 21 months. Revenue figures vary significantly, with the lowest annual revenue recorded at $463,211 and the highest at $3,241,161, showcasing the potential for substantial earnings.
Operational Costs
The average cost of goods sold (COGS) for SpeeDee units is $514,055, accounting for 34.5% of total revenue. After deducting operating expenses, which average $707,851 (47.6% of revenue), franchisees can anticipate an EBITDA of $264,777, representing 17.8% of revenue. Understanding these financial metrics is crucial for managing profitability effectively.
Franchise Growth
SpeeDee has shown steady growth in its franchised units, with 68 units in 2020, 72 in 2021, and a slight decline to 69 in 2022. The brand also expanded its corporate presence, increasing from 1 corporate unit in 2020 to 9 in both 2021 and 2022. This growth reflects the brand's commitment to expanding its footprint and enhancing support for franchisees.
Franchise Support
Franchisees of SpeeDee Oil Change & Auto Service benefit from comprehensive support, including training programs, operational guidance, and marketing assistance. The franchise system is designed to help new owners navigate the challenges of running an automotive service business while maximizing their potential for success. This support structure is vital for both new and experienced franchisees.
Market Position
SpeeDee Oil Change & Auto Service operates in a competitive market, providing quick and reliable automotive services. The brand's focus on customer service and efficiency positions it well against other service providers. By leveraging its established reputation and operational model, SpeeDee aims to attract a loyal customer base while offering franchisees a viable business opportunity.
Frequently Asked Questions
The initial investment for a SpeeDee franchise ranges from $265,626 to $872,142, which includes the franchise fee, equipment, and other startup costs.