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Description
Investment Icon

What Are the Initial Investment Requirements for a Grease Monkey Franchise?

To become a Grease Monkey franchisee, you'll need to consider a range of initial investment costs. The total investment can vary significantly, with a low of $251,816 and a high of $821,052. This includes a franchise fee of $39,900, which is a one-time payment to join the brand. Additionally, you should be prepared for ongoing costs, such as a royalty fee of 6% of your revenue and a marketing fee of 2%. It’s essential to ensure you have the required cash on hand, as well as a net worth between $500,000 and $1,000,000 to qualify for ownership.

Fees Icon

What Can Franchisees Expect in Terms of Revenue?

Franchisees can anticipate a solid revenue stream from their Grease Monkey locations. The average annual revenue per unit is approximately $1,487,022, with a median of $691,912. The revenue figures can vary widely, with the lowest annual revenue reported at $346,625 and the highest reaching $3,068,886. Such potential earnings highlight the opportunity for profitability, especially when coupled with a breakeven time of just 12 months and an investment payback period of around 13 months.

Revenue Icon

What Are the Operational Costs for Running a Grease Monkey Franchise?

Understanding the operational costs is crucial for any prospective franchisee. For Grease Monkey, the average annual operating expenses total around $930,193, which accounts for nearly 49.6% of the average annual revenue. Key expenses include salaries, wages, and benefits at $203,261, followed by retail operating expenses and rent. Keeping these costs in check is vital to maintaining profitability and ensuring a successful franchise operation.

Breakeven Icon

How Has Grease Monkey Expanded Over the Years?

Grease Monkey has shown consistent growth in its franchise model. In 2021, there were a total of 301 units, with 185 being franchised. This number grew to 337 units in 2022 and reached 351 units in 2023, indicating a steady increase in both franchised and corporate-owned locations. The growth reflects the brand's appeal and the successful support it provides to its franchisees, making it an attractive option for those looking to invest in the automotive service industry.

Grease Monkey 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

13 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$39,900
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$251,816 - $821,052
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$251,816 - $821,052
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,487,022
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$691,912
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$3,068,886
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$346,625
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Automotive Franchises
Category icon A more specific division within the broader industry.

i Category:

Auto Repair
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

John Adams
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

5575 DTC Pkwy., #100, Greenwood Village, Colorado 80111
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2006
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

FullSpeed Automotive LLC

Grease Monkey Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

351
The number of locations owned by independent franchisees.

Franchised Units i

201
The number of locations owned and run by the franchisor.

Corporate Units i

150
Units 2021 2022 2023
Total Units 301 337 351
Net Change YoY 36 14
Franchised Units 185 187 201
Net Change YoY 2 14
Corporate Units 116 150 150
Net Change YoY 34 0
Investment About

Investment Overview

The Grease Monkey franchise offers a range of investment options with an initial investment ranging from $251,816 to $821,052. The initial franchise fee is set at $39,900, while ongoing royalty and marketing fees are 6% and 2% of gross sales, respectively. Prospective franchisees should be prepared to meet a cash requirement of between $251,816 and $821,052 and have a net worth of $500,000 to $1,000,000 to qualify for ownership.

Potential About

Revenue Potential

Grease Monkey franchises demonstrate strong revenue potential, with average annual revenue per unit reported at $1,487,022. The median annual revenue stands at $691,912, while the highest-performing units have achieved revenues of up to $3,068,886. This diverse revenue range indicates the opportunity for franchisees to optimize their operations for profitability.

Metrics About

Breakeven and Payback

Franchisees can expect a breakeven period of approximately 12 months, allowing for a quicker return on investment. The investment payback period is estimated at 13 months, which highlights the potential for franchisees to recoup their initial investments relatively swiftly, provided they follow the operational guidelines and leverage the brand's support.

Fees About

Franchise Growth

The Grease Monkey franchise network has shown consistent growth, increasing from 185 franchised units in 2021 to 201 units in 2023. This upward trend reflects the brand's expanding market presence and appeal, which can be advantageous for new franchisees looking to join a growing system with a solid foundation.

Breakeven About

Corporate Support

Grease Monkey provides robust corporate support to its franchisees, including training, marketing assistance, and operational guidance. With a network of 150 corporate units as of 2023, the franchise leverages its experience to help franchisees navigate challenges and optimize their business performance, ensuring they have the resources needed for success.

Units About

Financial Performance

The financial metrics for Grease Monkey franchises indicate a healthy operating environment. Average annual revenue is reported at $1,875,712, with a gross profit margin of 73.2%. Operating expenses account for 49.6% of revenue, leading to an EBITDA of $447,519, or 23.9% of revenue. These figures underscore the franchise's potential for profitability and sustainability in the competitive automotive service industry.

Frequently Asked Questions

The initial investment for a Grease Monkey franchise ranges from $251,816 to $821,052, which includes the franchise fee, equipment, and other startup costs.