The complete business platform

Transcription

1 SM Valvoline Instant Oil Change Franchising The complete business platform

2 Not Your Typical Retail Welcome to Valvoline Instant Oil Change SM Franchising! As you explore this business opportunity, you ll quickly learn that owning and operating Valvoline Instant Oil Change service centers is different from running other retail businesses such as fast food or convenience stores. Shorter Hours We have shorter hours of operation, typically 8 a.m. to 7 p.m., Monday through Saturday, and 11 a.m. to 5 p.m. on Sunday. We are closed most major holidays. Fewer Employees We have fewer employees per location typically 10 full and part-time jobs per center. Easier Development Our sites require less real estate than a typical retail concept, with only minimal space needed for parking. Less Risk Limited inventory and restricted access to cash result in less shrinkage and theft. There are no perishable products to manage. Limited Menu We offer a limited range of services, which simplifies the business model.

3 Average Operating Income Per Store $232,986* Valvoline Instant Oil Change SM has grown its business through the years, in good economic times and bad. Of course, past performance is no guarantee of future success, but we do believe it highlights the all-weather capability of our business model relative to other retailers AVG STORE NET SALES (x1000)** AVG OIL CHANGES PER DAY *** AVG $ TICKET PER OIL CHANGE**** $805 $ $ $722 $ $ $ $ $652 $ $65.28 $ $ Bar charts are based on Valvoline Instant Oil Change company-owned stores for the Fiscal Year which begins October 1 and ends September 30, and includes only existing stores that were open on October 1 and remained in operation through September * Average Operating Income is net sales less product, labor, store expenses and advertising expenses. Store expenses exclude operating leases, market and corporate overhead, and depreciation. Advertising expenses are allocated equally across the stores and do not necessarily represent the actual amount spent 31.7 by an individual store. This figure is for fiscal year $ ** Average Store Net Sales means gross revenue net of sales tax collected (from customer) and net of coupons/discounts (provided to customer). *** Oil Changes Per Day (OCPD) means average daily oil changes performed based on a 6-day work week less key holidays (307 days total annually), although some stores are open 7 days each week. **** Average Ticket means gross ticket net of sales tax collected from the customer 31and net of coupons/discounts given to the customer $59.96 $

4 I think the delivery system to the franchisees is bar none the best around. They re really willing to grow their business and make yours better at the same time. Andrew Slattery, President, Quality Automotive Services, Inc., Charlotte, NC 29 Valvoline Instant Oil Change stores Award-Winning Expertise Ranked #58 on Entrepreneur Magazine s Franchise 500, 2015 ASE -accredited training provider Association for Talent Develoment BEST Award, the training industry s most rigorous and coveted recognition for demonstrating enterprise-wide success through employee learning and development Training Top 125 Award. Our franchise business consultants have an average of 14 years of experience in the quick lube business.

5 Tools For Success As a Valvoline Instant Oil Change SM franchisee, the tools and support systems you get are the same tools and support systems we use in our more than 270 company-owned stores. Our franchisees benefit from our real-world experience in ways other franchisors cannot match. We offer: Development support that includes site selection and construction assistance. Online and classroom training programs for management-level employees, technicians and customer service reps. A state-of-the-art point-of-sale system with dashboards and benchmarking reports that help you manage your day-to-day business. Cost-saving partnership programs with vendors and suppliers for uniforms, computer systems, office supplies, janitorial supplies and much more. Talent management tools to help you recruit and retain the best employees, helping to deliver increased revenue per hour while reducing turnover. Marketing tools designed to help you develop a strong and loyal customer base. A fleet management program to help you grow commercial accounts. A customer care program and customer satisfaction measurement tools. On-going support from an experienced franchise business consultant trained in all aspects of the business. Their motivation and focus on continually trying to improve the customer experience has helped the system as a whole, and certainly helped me as a franchisee to be successful in my business. Michael Ferri, President, Galena, Hartford, CT 103 Valvoline Instant Oil Change stores

6 Valvoline Heritage Valvoline introduced motor oil in 1866 and has been reinventing it ever since. Valvoline has been proven under the most demanding conditions the racetrack for decades. Valvoline Instant Oil Change SM builds on that heritage by helping you put your own pit crew in each of your service centers. You will service your customers vehicles with speed and precision, and get them back on the road quickly and safely. We help you become great at what you do because your customers deserve it and the Valvoline legacy demands it. Valvoline is a strong company, and they have made it possible for me to be where I am. Charles Coleman, President, Tri-C Petroleum, Bradenton, FL 1 Valvoline Instant Oil Change store

7 Becoming a Franchisee Qualifications Requirements will depend on the scope of your initial investment and market development goals, but in general we require: Liquid assets of $300,000 to $800,000 Minimum net worth of $600,000 to $1,000,000 Incentives We offer a variety of incentives for new franchisees, including: New center incentives from $75,000 to $150,000 Up to $45,000 in interest-free financing for store signage. The ideal franchise candidate is a successful business person, already a multi-unit operator or independent quick lube operator. How to Get Started Costs Go to for more information, or call us at (800) Development costs range from $134,925 to $1,961,000 depending on real estate costs and whether you lease or purchase your location. If I had to do this over again today I would absolutely go with Valvoline Instant Oil Change. I always am out there in new markets looking at the competition, and we have seen a pretty marked decline in the operational capabilities of our competitors. Valvoline has only gone in one direction and that s up. Don Smith, President, Henley Enterprises, Newton, MA 202 Valvoline Instant Oil Change stores See more franchise testimonials at

8 Interested in Franchising? With more than 920 service centers in 42 states, Valvoline Instant Oil Change SM still has plenty of room to grow. While a few markets are closed to new development, many markets offer a terrific business opportunity for the right franchisee. We can help you identify the right number of stores and the right locations for your selected market. Visit or call us at (800) for more information. Proven. Simple. Trusted. That s Valvoline. Valvoline Instant Oil Change Franchising, Inc Blazer Parkway Lexington, Kentucky (800) VIOC Ashland 2/15 SM Service mark, Ashland or its subsidiaries, registered in various countries. The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of a franchise. We do not offer franchises in jurisdictions where we are not registered (or exempt from registration). Residents of New York: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MINNESOTA REGISTRATION FILE NUMBER F Valvoline Instant Oil Change * 3499 Blazer Parkway * Lexington, KY MINNESOTA REGISTRATION FILE NUMBER F-2019