A Mr. Lube franchise is a high quality, environmentally safe, sophisticated and technically advanced building with an expected life of at least twenty years. The costs of construction include the actual building cost, providing services to the building, equipment, fixtures and signage.
The total cost of this investment, including building, equipment, fees and set up costs, can range between $900,000 and $1,500,000. This development cost is dependent upon many factors including actual tender costs for build and equipment, site services, local conditions and landlord contributions toward the development costs.
An initial cash investment in the range of $400,000 to $600,000 is required. If opportunities exist in your region to invest in a pre-used facility, your cash outlay could be less. The amount will vary depending upon the actual cost of the store and the bank financing that you are able to arrange.
Mr. Lube Canada is not permitted by law to provide earnings claims and, therefore, cannot provide results, timing or sales levels. However, we do have a modelling tool that you can use to assist in calculating results. This will be made available to you after we provide a disclosure document.
We believe that any business will achieve better results when the owner is fully involved with the business. However, if you intend to be an absentee investor and have an operating partner we recommend that the operator also invests his or her own capital and has an equity interest.
The royalty fee is calculated at 7% of gross sales and there is also a marketing fee of 6.5% of gross sales which supports both national and local marketing efforts.
Training for our new franchisees is a comprehensive program that provides a mixture of web-based, hands-on and practical instructor-lead components, integrated with classroom facilitation. This follows a one week “on boarding” training program designed to introduce new franchisees to our functional departments and present how each of these groups will support the stores throughout start up and subsequent day-to-day operations. We then complement this training with practical in-store training experience. Our training program for a new owner is typically three months.
The services we provide are for preventive automobile maintenance, not repair, therefore operators and employees need not be certified auto mechanics. However, store employees are required to be certified through the Mr. Lube comprehensive training program.
The process from initial meeting to opening your store can typically take six to eighteen months. From the time we meet you, it usually takes two to three months for us to evaluate and assess the mutual fit of your skills, attributes and equity with the Mr. Lube investment opportunity. In some communities, getting a development permit for a new store can take nine months or more. The actual construction of the store is usually 20 weeks.