In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Strickland Brothers 10 Minute Oil Change franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Strickland Brothers 10 Minute Oil Change franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Strickland Brothers 10 Minute Oil Change outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Strickland Brothers 10 Minute Oil Change franchise opportunity

Section V – Presentation and analysis of Strickland Brothers 10 Minute Oil Change’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average total income, cost of goods sold, gross profit, expenses, estimated net profit, average manager salary, adjusted net profit – owner-occupied model for the 81 affiliate-owned Strickland Brothers 10 Minute Oil Change locations that have been operating under the Strickland Brothers 10 Minute Oil Change name for at least 12 full calendar months as of December 31, 2023, and operate in a manner that is reasonably similar to that of a franchisee-owned Strickland Brothers 10 Minute Oil Change business (“Affiliate Representative Units”)

• average daily tickets, average ticket, COGS %, unit level labor (excluding manager) %, discount %, premium oil %, M5%, and Google Review Score of the Affiliate Representative Units for the fiscal year ending December 31, 2023

• 2023 average total income, cost of goods sold, gross profit, and expenses for the 39 franchisee-owned Strickland Brothers 10 Minute Oil Change locations that have been operating under the Strickland Brothers 10 Minute Oil Change name for at least 12 full calendar months as of December 31, 2023 (“Franchisee Representative Units”)

• average cars per day, ticket average, COGS %, labor %, M5%, discount %, premium oil %, and Google Review Score of the Franchisee Representative Units for the fiscal year ending December 31, 2023

• combined gross revenue performance of the Affiliate Representative Units and franchisee-owned locations for fiscal years 2019, 2020, 2021, 2022, and 2023

Section VI – Key ratios, comparables, computations, and analyses for the Strickland Brothers 10 Minute Oil Change franchise opportunity (exclusive content for Platinum subscribers)

Section I – Strickland Brothers 10 Minute Oil Change Franchise Costs

• Strickland Brothers 10 Minute Oil Change franchise costs (full development option), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $54,900
• Travel and Living Expenses While Training:  $2,500 to $10,000
• Real Estate Deposits (3 months):  $10,000 to $45,000
• Licenses, Permits, and Legal Fees:  $1,000 to $3,500
• Equipment, Tool Package:  $35,000 to $65,000
• Equipment Installation:  $25,000 to $50,000
• Furniture and Décor:  $2,500 to $8,500
• Computer and POS System:  $10,000 to $15,000
• Grand Opening Advertising:  $20,000
• Inventory and Supplies:  $20,000 to $25,000
• Insurance:  $2,000 to $5,000
• Signage:  $15,000 to $40,000
• Additional Funds (3 months):  $50,000
• Total Estimated Strickland Brothers 10 Minute Oil Change Franchise Costs:  $247,900 to $391,900

Section II – Strickland Brothers 10 Minute Oil Change’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Strickland Brothers 10 Minute Oil Change’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $54,900
• Royalty:  6% of Gross Revenue
• Brand Fund Contribution:  2% of Gross Revenue
• Local Marketing Requirement:  2.5% of Gross Revenue

Section III – Number of Franchised and Company-Owned Strickland Brothers 10 Minute Oil Change Outlets

Franchised

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  21
• Net Change:  +20

2022

• Outlets at the Start of the Year:  21
• Outlets at the End of the Year:  47
• Net Change:  +26

2023

• Outlets at the Start of the Year:  47
• Outlets at the End of the Year:  67
• Net Change:  +20

Company-Owned

2021

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  58
• Net Change:  +38

2022

• Outlets at the Start of the Year:  58
• Outlets at the End of the Year:  85
• Net Change:  +27

2023

• Outlets at the Start of the Year:  85
• Outlets at the End of the Year:  159
• Net Change:  +74

Section IV – News Updates on the Strickland Brothers 10 Minute Oil Change Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Strickland Brothers 10 Minute Oil Change Franchise (Item 19, 2024 FDD)

• The franchisor’s affiliate, Strickland’s Enterprises, LLC (“Affiliate”), operates 58 businesses similar to the Strickland Brothers 10 Minute Oil Change business offered pursuant to the Franchise Disclosure Document. These businesses trade as “SB Oil Change”.

• The franchisor’s Affiliate founded the SB Oil Change business in 2016, and operated the business from a location in Thomasville, North Carolina beginning in 2016. Since 2018, the franchisor’s Affiliate has opened additional SB Oil Change locations in Florida, Indiana, Kentucky, Massachusetts, North Carolina, Ohio, South Carolina, Tennessee, Virginia, and West Virginia.

Part 1 – Performance of the Affiliate Representative Units for the Year Ending December 31, 2023

• As of December 31, 2023, there were 81 Affiliate owned Strickland Brothers 10 Minute Oil Change locations (the “Affiliate Representative Units”) that have been operating under the Strickland Brothers 10 Minute Oil Change name for at least 12 full calendar months and operate in a manner that is reasonably similar to that of a franchisee-owned SB Oil Change business.

• The combined performance of the Affiliate Representative Units for the year ending December 31, 2023, is summarized in the table below.

Total Income:  $761,207.48 (100.0%)

Cost of Goods Sold:  $191,829.87 (25.2%)

Gross Profit:  $569,377.61 (74.8%)

Expenses

• Rent:  $65,070.01 (8.5%)
• Utilities:  $12,729.33 (1.7%)
• Repairs/Maintenance:  $4,665.11 (0.6%)
• Payroll/Employee Expenses:  $197,316.08 (25.9%)
• Uniform Expenses:  $3,869.38 (0.5%)
• Damage Claims:  $4,818.92 (0.6%)
• Small Tools and Equipment:  $2,245.77 (0.3%)
• Insurance Expense:  $658.41 (0.1%)
• Credit Card Fees:  $10,807.61 (1.4%)
• Office Supplies:  $1,808.56 (0.2%)
• Taxes:  $61,302.75 (8.1%)
• Estimated Tech Fees:  $2,552.77 (0.3%)
• Estimated Brand Fund Contribution:  $15,224.15 (2.0%)
• Estimated Local Advertising:  $19,615.17 (2.6%)
• Estimated Royalty:  $45,672.45 (6.0%)
• Total Expenses:  $448,356.47 (58.9%)

Estimated Net Profit:  $121,021.15 (15.9%)

Average Manager Salary:  $55,000.00 (7.2%)

Owner Occupied Model:  $176,021.15 (23.1%)

• “Total Income” means the total selling price of all services and products sold at or from the Affiliate Representative Units (not adjusted for credit card fees), and all income and revenue of every other kind and nature related to the Affiliate Representative Units, whether from cash, check, credit and debit card, barter, exchange, trade credit, or other credit transactions, but excluding taxes collected from customers and paid to taxing authority, and reduced by the actual amount of any documented refunds, credits, allowances, bad debts, and chargebacks the Affiliate Representative Units in good faith give to customers.

• “COGS” means the Cost of Goods Sold which is the total annual costs of automobile parts and other associated materials.

• “Net Profit” means the earnings of the Affiliate Representative Units before interest, taxes, depreciation, and amortization (i.e., Gross Revenue less the COGS, variable and fixed expenses, and estimated royalties and brand fund contributions).

• The Affiliate Representative Units did not pay tech fund fees, royalties, and brand fund contributions to Strickland Brothers and are not required to spend a defined amount in their local areas for marketing.

Part 2 – Key Performance Indicators of the Affiliate Representative Units for the Fiscal Year Ending December 31, 2023

• The combined key performance indicators of the Affiliate Representative Units for the fiscal year ending December 31, 2023, is summarized in the table below.

Average

• Average Daily Tickets:  22.5
• Average Ticket:  $86.86
• COGS %:  24%
• Unit Level Labor (Excluding Manager) %:  16%
• Discount %:  7%
• Premium Oil %:  76%
• M5%:  29%
• Google Review Score:  4.69

• “Ticket” means the total sale price per customer.

• “Unit Level Labor” means top line sales attributed to labor.

• “Discounts %” includes discounts provided to customers as a result of promotions and other marketing initiatives.

Part 3 – Performance of the Franchisee Representative Units for the Year Ending December 31, 2023

• As of December 31, 2023, there were 39 Franchisee owned Strickland Brothers 10 Minute Oil Change locations (the “Franchisee Representative Units”) that have been operating under the Strickland Brothers 10 Minute Oil Change name for at least 12 full calendar months as of December 31, 2023.

• The franchisor has not included any Affiliate Representative Units or Franchisee Representative Units that (i) operate in a manner that is not similar to that of a franchisee-owned SB Oil Change business or (ii) that were not in operation for all of the 2023 calendar year.

• The combined performance of the Franchisee Representative Units for the year ending December 31, 2023, is summarized in the table below.

Total Income:  $636,827.72 (100.0%)

Cost of Goods Sold:  $174,424.38 (27.4%)

Gross Profit:  $468,816.19 (73.6%)

Expenses

• Rent:  $86,801.52 (13.6%)
• Unit Level Labor:  $120,931.85 (19.0%)
• Tech Fees:  $4,740.00 (0.7%)
• Local Ad Fund:  $15,920.69 (2.5%)
• Brand Fund:  $12,736.55 (2.0%)
• Royalties:  $31,841.39 (5.0%)

• “Total Income” means the total selling price of all services and products sold at or from the Franchisee Representative Units (not adjusted for credit card fees), and all income and revenue of every other kind and nature related to the Franchisee Representative Units, whether from cash, check, credit and debit card, barter, exchange, trade credit, or other credit transactions, but excluding taxes collected from customers and paid to taxing authority, and reduced by the actual amount of any documented refunds, credits, allowances, bad debts, and chargebacks the Franchisee Representative Units in good faith gives to customers.

• “COGS” means the Cost of Goods Sold which is the total annual costs of automobile parts and other associated materials.

• “Gross Profit” means the earnings of the Franchisee Representative Units before interest, taxes, depreciation, and amortization (i.e. Gross Revenue less the COGS, variable and fixed expenses, and estimated royalties and brand fund contributions).

• The above data is based upon the information actually provided to Strickland Brothers by the Franchisee Representative Units.

Part 4 – Key Performance Indicators of the Franchisee Representative Units for the Fiscal Year Ending December 31, 2023

• The combined key performance indicators of the Franchisee Representative Units for the fiscal year ending December 31, 2023, is summarized in the table below.

Average

• Cars Per Day:  22.51
• Ticket Average:  $88.78
• COGS %:  24%
• Labor %:  20%
• M5%:  25%
• Discount %:  9%
• Premium Oil %:  79%
• Google Review Score:  4.80

• “Ticket” means the total sale price per customer.

• “Unit Level Labor” means top line sales attributed to labor.

• “Discounts %” includes discounts provided to customers as a result of promotions and other marketing initiatives.

Part 5 – Performance of the Affiliate Representative Units and Franchisee-Owned Locations for Fiscal Years 2019, 2020, 2021, 2022, and 2023

• The combined performance of the Affiliate Representative Units and franchisee-owned locations for fiscal years 2019, 2020, 2021, 2022, and 2023, is summarized in the table below.

2019

• Franchise Gross Revenue:  $0
• Company-Owned Gross Revenue:  $8,412,990.97
• System-Wide Gross Revenue:  $8,412,990.97

2020

• Franchise Gross Revenue:  $74,315.21
• Company-Owned Gross Revenue:  $10,517,405.01
• System-Wide Gross Revenue:  $10,591,720.22

2021

• Franchise Gross Revenue:  $6,364,101.20
• Company-Owned Gross Revenue:  $20,138,422.12
• System-Wide Gross Revenue:  $26,502,523.32

2022

• Franchise Gross Revenue:  $21,821,521.86
• Company-Owned Gross Revenue:  $48,261.206.20
• System-Wide Gross Revenue:  $70,082,728.06

2023

• Franchise Gross Revenue:  $38,836,007.00
• Company-Owned Gross Revenue:  $77,131,215.00
• System-Wide Gross Revenue:  $115,967,222.00

• The Affiliate Representative Units opened between 2016 and 2021. The majority of the Affiliate-owned locations contain 3 vehicle bays. The Affiliate Representative Units have traffic volumes ranging from 4,800 to 44,609 and operate in areas containing households ranging from 3,591 to 283,733 within a 5-mile radius.

• The Franchisee Representative Units contain 2 to 5 vehicle bays, depending on the location. The Franchisee Representative Units have traffic volumes ranging from 6,882 to 53,000 and operate in areas containing households ranging from 3,235 to 191,016 within a 5-mile radius.

• The above data assumes an owner/operator model without a designated manager.

• The above data is based on ground lease/acquisitions where Strickland Brothers’ Affiliate either acquired an existing oil change facility or built the location.

• The Affiliate Representative Units are acquisitions and/or ground leases.

• These results are unaudited.

• These results represent sales of products and services that will be available to the franchisee to sell.

• Some outlets have sold or earned this amount. Your individual results may differ. There is no assurance that you will sell or earn as much.

Section VI – Strickland Brothers 10 Minute Oil Change Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️