Strickland Brothers Franchise in 2024: Costs, Fee & FDD
Explore whether Strickland Brothers 10 Minute Oil Change is the right investment for you. Dive into key insights, pros and cons, and discover the potential of the fast-growing franchise.
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Strickland Brothers 10 Minute Oil Change is a fast-growing franchise in the automotive service industry, founded by Justin Strickland in 2016. With a vision of providing quick, reliable, and friendly oil change services, Justin built the business around the idea of delivering top-notch customer service without the upsell pressure often found in the industry. The brand has quickly gained a reputation for convenience and quality, setting itself apart from competitors by sticking to what it does best—quick oil changes, and doing them exceptionally well.
The core service offered by Strickland Brothers is, of course, the 10-minute oil change. This service is designed to get customers in and out as quickly as possible, while still ensuring the job is done right. In addition to oil changes, they offer a range of ancillary services such as air filter replacements, wiper blade installations, and fluid top-offs, making it a one-stop shop for essential vehicle maintenance. The core market for Strickland Brothers is busy individuals and families who value speed and reliability in their vehicle maintenance routine.
As of now, Strickland Brothers has grown impressively, with over 150 locations across the United States. The franchise’s success is largely due to its ability to meet the needs of a time-strapped customer base, providing services to thousands of vehicles daily. Their rapid expansion reflects a solid business model and growing demand for convenient, quick service in the automotive industry. The franchise doesn’t just stop at national borders, with plans to expand internationally, showing their ambition and potential in the global market.
The franchise offers robust support for its franchisees, which is a significant draw for potential investors. Strickland Brothers provides comprehensive training programs that cover both the operational aspects and customer service excellence. New franchisees can expect ongoing support through marketing, operations, and technology to ensure their success. This support system, coupled with the brand’s growing reputation, makes Strickland Brothers an attractive option for those looking to invest in a reliable and fast-growing franchise in the automotive sector.
Strickland Brothers Franchise Insights
- The franchise has grown to over 150 locations across the U.S. in just a few years, reflecting a strong demand for quick, reliable oil change services.
- On average, each location serves around 30 to 50 vehicles per day, showcasing the efficiency and customer appeal of their 10-minute oil change model.
- Strickland Brothers is recognized for its franchisee-friendly terms, making it an attractive investment in the automotive service industry. While specifics can vary, Strickland Brothers has a reputation for being approachable and supportive, making it a viable option for potential investors.
Strickland Brothers Franchise Key indicators
Unit Growth YOY (%)
41%
vs industry 0%
Total U.S. Franchised Units
66
3-Year Failure Rate
2%
vs industry 10%
Sales-to-Investment ratio
0.5:1
How much does it cost to open a Strickland Brothers franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Strickland Brothers franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Strickland Brothers franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Strickland Brothers below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $54,900 | $54,900 |
| Travel and Living Expenses While Training | $2,500 | $10,000 |
| Real Estate Deposits (3 months) | $10,000 | $45,000 |
| Licenses, Permits & Legal Fees | $1,000 | $3,500 |
| Equipment, Tool Package | $35,000 | $65,000 |
| Equipment Installation | $25,000 | $50,000 |
| Furniture and Décor | $2,500 | $8,500 |
| Computer and POS System | $10,000 | $15,000 |
| Grand Opening Advertising | $20,000 | $20,000 |
| Inventory and Supplies | $20,000 | $25,000 |
| Insurance | $2,000 | $5,000 |
| Signage | $15,000 | $40,000 |
| Additional Funds (3 months) | $50,000 | $50,000 |
| Total Estimated Initial Investment | $247,900 | $391,900 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
For Strickland Brothers 10 Minute Oil Change, the required capital typically includes:
- Initial Investment The total investment required to open a Strickland Brothers franchise usually ranges from approximately $248,000 to $392,000. This includes everything from the franchise fee to equipment and initial inventory. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets It’s generally recommended that you have around $75,000 to $100,000 in liquid assets. This ensures that you have enough cash on hand to cover operational expenses, especially during the startup phase.
- Net Worth A net worth requirement for Strickland Brothers or similar franchises in the automotive service industry often falls in the range of $300,000 to $500,000. This ensures that franchisees have the financial stability to support the business and handle any unforeseen challenges.
These figures are based on typical industry standards and information available for Strickland Brothers and similar franchises. If you’re seriously considering this investment, it’s always a good idea to reach out directly to the franchise for the most accurate and up-to-date financial requirements.
How much does a Strickland Brothers franchise owner make?
Calculating the salary of a Strickland Brothers franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Strickland Brothers franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Strickland Brothers Revenue & Gross Sales
Based on the most recent analysis, Strickland Brothers 10 Minute Oil Change franchises reported a median gross sales of $655,916. This indicates that the brand continues to have strong potential for franchisees, though they must contend with a competitive market and rising inflation costs.
Which key factors impact the average revenue performance of Strickland Brothers franchisees?
The performance of Strickland Brothers 10 Minute Oil Change franchisee median gross sales over the past year could be attributed to several factors. Economic challenges, such as rising inflation and fuel prices, likely reduced discretionary spending, leading customers to delay non-essential vehicle maintenance. Additionally, increased competition from other quick-service oil change providers and dealerships offering similar services may have impacted market share. Supply chain disruptions and labor shortages might have also played a role, leading to operational inefficiencies and higher costs. Lastly, shifts in consumer behavior, with more people working from home, could have decreased the demand for frequent vehicle maintenance, contributing to the overall decline in sales.
Strickland Brothers Franchise Operational Costs
When opening a Strickland Brothers 10 Minute Oil Change franchise, the key ongoing operational costs you should consider include:
- Employee Wages Labor costs will be one of the most significant expenses, including wages for technicians and administrative staff.
- Supplies and Inventory Regular replenishment of oil, filters, wiper blades, and other automotive products necessary for daily operations.
- Lease or Mortgage Payments Depending on your location, rent or mortgage payments for the property will be a consistent expense.
- Utilities Costs for electricity, water, and waste disposal, which are essential for maintaining the facility and equipment.
- Equipment Maintenance Regular servicing and repairs of the equipment used for oil changes and other services to ensure smooth operation.
- Insurance Comprehensive insurance coverage for the business, including liability, property, and worker’s compensation insurance.
These costs are critical to maintaining the smooth operation and financial health of your franchise.
Strickland Brothers Franchise Fees
When considering the ongoing fees associated with opening a Strickland Brothers 10 Minute Oil Change franchise, it’s essential to understand the financial commitments beyond the initial investment. Here are some key fees you’ll need to account for:
- Royalty 6% of Gross Revenue, due monthly via EFT by the 15th of the month for the previous month’s revenue. This fee is based on your Gross Revenues, which means it directly ties into how much your franchise earns.
- Brand Fund Contribution 2% of Gross Revenue, paid alongside the royalty fee each month via EFT. This fee supports the brand’s overall marketing and promotional efforts, contributing to the franchise’s visibility and growth.
- Additional Fees There might be other fees, such as technology fees, training fees, or local advertising costs, depending on your specific franchise location and its operational needs.
These fees should be carefully considered in your financial planning to ensure a comprehensive understanding of your ongoing obligations.
Strickland Brothers Franchise Earnings
Based on the most recent data, the estimated median gross sales for a Strickland Brothers 10 Minute Oil Change franchise is approximately $655,916. For an owner-operator, this translates to estimated earnings (EBITDA) of around $78,710 annually.
These earnings provide a realistic picture of what franchisees might expect to generate, especially for those who are deeply involved in the day-to-day operations. Despite the slight decline, the earnings still represent a substantial return, making it a viable investment opportunity for dedicated owner-operators.
How to Open a Strickland Brothers Franchise
Becoming a Strickland Brothers 10 Minute Oil Change franchisee involves several key steps, beginning with the initial inquiry and culminating in the start of operations. Here’s an overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After the initial contact, you’ll receive a more detailed franchise application. This application will ask for comprehensive information about your financial standing, experience, and reasons for wanting to join the Strickland Brothers franchise.
- Review and Approval Once your application is submitted, the Strickland Brothers team will review it. If you meet their criteria, you’ll be invited to a Discovery Day, where you can meet the team, learn more about the business, and get a feel for the company’s culture.
- Franchise Agreement If you decide to proceed, you’ll sign the franchise agreement, officially becoming a Strickland Brothers franchisee. At this stage, you’ll pay the initial franchise fee.
- Training Program After signing the agreement, you’ll undergo a comprehensive training program. This program typically includes both classroom instruction and hands-on training at an existing location, covering everything from operations to customer service.
- Site Selection and Build-Out Concurrently, you’ll work with the Strickland Brothers team to select an ideal location for your franchise. They’ll assist with site selection, lease negotiations, and the build-out process, ensuring that your location meets brand standards.
- Grand Opening Preparation As the build-out nears completion, you’ll prepare for the grand opening. This includes finalizing inventory, hiring staff, and launching marketing efforts to generate buzz in your community.
- Start of Operations Finally, once everything is in place, you’ll open your doors and begin operations. Strickland Brothers will provide ongoing support to help ensure your success from day one.
Pros & Cons
Pros
Proven Business Model: The franchise operates on a streamlined, efficient business model focused on delivering quick and reliable services, which attracts a steady customer base.
Customer Loyalty: With a focus on excellent service and convenience, the franchise has built a loyal customer base, leading to high repeat business.
Scalable Business: The simplicity of the operations allows for scalability, making it easier to expand by opening multiple locations once the first one is established.
Cons
Market Saturation: The quick-service oil change industry is highly competitive, with many established brands, which could make it challenging to capture and retain market share in certain areas.
Economic Sensitivity: The business can be sensitive to economic downturns, as customers may delay vehicle maintenance during tough economic times, potentially impacting revenues.
Operational Intensity: Although the business model is simple, it requires hands-on management, especially in the early stages, which might be demanding for some investors.
Declining Sales: Recent trends showing a slight decline in median gross sales might indicate challenges that need to be addressed, such as adapting to market changes or enhancing customer engagement.
