Risk Score
Pending analysis
Investment Range
$2,564,000 - $3,818,000
Franchise Fee
$25,000
Min Cash Required
$400,000
Total US Locations
353
Business Summary
Express Oil Change/Tire Engineers Center specializes in providing automotive services including quick oil changes and lubrication, transmission service, air conditioning service, brake repair, tune-ups, and tire sales and service. These centers cater primarily to the motoring public.
Corporate History
Express Oil Change Franchise, LLC was formed as a Delaware limited-liability company on April 13, 2018. Its immediate predecessor, Express Oil Change, L.L.C. (EOC), began offering franchises for EOC/TE Centers in 2014 and assigned its franchise agreements to the current franchisor in 2018. EOC's predecessor, Express Oil Change, Inc. (INC), was dissolved in December 1996, but it first owned and operated centers in 1979 and started offering franchises in June 1984. The EOC Group, Inc., which later became Mavis Tire Express Services Corp., is a parent company. Another affiliate, Mavis Southeast, LLC, acquired Gimex Properties, Corp., Inc., which franchises Tuffy Tire & Auto Service Centers, a similar business.
Financial Overview
Investment Range
$2,564,000 - $3,818,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$400,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$1,650,000
Equipment Costs (High)
$2,350,000
Working Capital
$103,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Express Oil Change Franchise, LLC's financial condition, as reflected in its financial statements, raises questions about its ability to provide services and support to franchisees, as highlighted in the FDD's Special Risks section. The financial statements indicate that Mavis Tire Express Services Topco Corp. and its subsidiaries (the "Company"), the ultimate parent company, had an accumulated deficit of over $475 million and negative working capital of over $169 million as of December 31, 2023. While management believes actions are being taken to alleviate substantial doubt about the Company's ability to continue as a going concern, this financial situation is noted as a risk.
Financing Details
Express Oil Change Franchise, LLC does not offer any direct or indirect financing to its franchisees. Express Oil Change Franchise, LLC also does not guarantee any of the franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
353
Franchised Units
32
Corporate Units
322
Avg Square Footage
4,000
Franchising Since
1984
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Express Oil Change Franchise, LLC has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document. This means Express Oil Change Franchise, LLC has not been involved in any material litigation, such as lawsuits or legal proceedings, that would be required to be disclosed to prospective franchisees.
Bankruptcy History
Express Oil Change Franchise, LLC has no bankruptcy history to report, as stated in Item 4 of its Franchise Disclosure Document. This means Express Oil Change Franchise, LLC, its predecessors, or key management personnel have not been involved in any bankruptcy proceedings that would require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Express Oil Change/Tire Engineers franchise for an additional 10-year period, franchisees must meet several conditions. These include providing written notice between six and twelve months before the initial term ends, completing all required maintenance, renovations, and remodeling of the Center to Express Oil Change Franchise, LLC's satisfaction, and ensuring they are not in default of their agreements and have satisfied all financial obligations. Franchisees must also have the right to possess the premises for the renewal term, execute a general release of claims against Express Oil Change Franchise, LLC, and meet current qualification and training requirements. Additionally, the equipment and inventory must meet current standards, and franchisees may be asked to sign a new franchise agreement with potentially different terms, including a royalty fee and advertising contribution that could increase by up to 20%.
Training & Support Program
Franchisor Assistance
Express Oil Change Franchise, LLC provides extensive assistance to its franchisees. Before opening, Express Oil Change Franchise, LLC offers general guidance for site evaluation, provides standard building plans and design specifications, initial advisory assistance, and an initial training program for the franchisee, manager, and initial crew. Franchisees also receive a copy of the operations manual, initial accounting and inventory forms, and the help of an experienced Center manager for up to five days during opening. Additional services like equipment purchases, construction, remodeling, marketing materials, and extra personnel training are available on a contract basis. On an ongoing basis, Express Oil Change Franchise, LLC offers continuing advisory assistance, maintains high standards through inspections and evaluations, disseminates standards and specifications, and establishes quality criteria for products and services. Express Oil Change Franchise, LLC also keeps franchisees informed of innovations, provides advertising and promotional materials, offers bookkeeping and accounting procedures, and helps with bulk purchasing. Express Oil Change Franchise, LLC may also establish and administer an advertising fund.
Initial Training Hours
417
Training Location
Birmingham, AL and other Center locations in Alabama
Ongoing Support
After opening, Express Oil Change Franchise, LLC provides continuing advisory assistance in operating the Center. Express Oil Change Franchise, LLC conducts inspections, evaluates products and services, and sets quality standards and procedures for approving suppliers to maintain high system standards. Franchisees are kept informed of innovations and changes, provided with samples of advertising and promotional plans and materials, and offered bookkeeping and accounting procedures. Express Oil Change Franchise, LLC also helps franchisees benefit from mass or bulk purchasing power for products and supplies. Additionally, Express Oil Change Franchise, LLC may, at its discretion, establish and administer a national or regional advertising fund.
Franchise Requirements
Ideal Candidate Profile
Express Oil Change Franchise, LLC encourages franchisees to be personally involved in and direct the operation of their Centers, though it is not strictly required. An ideal Express Oil Change/Tire Engineers franchisee is someone who will devote their best efforts to the development and success of the Center. The Center must always be under the direct, on-premises supervision of either the franchisee or a manager who has successfully completed the franchisor's training program and dedicates their entire business hours to the Center's operation. For corporate or legal entity franchisees, each owner with at least 5% equity and voting rights must personally guarantee and be bound by the obligations under the Franchise Agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
Each Express Oil Change/Tire Engineers Center receives a protected area of a 1-mile radius around its specific location, meaning Express Oil Change Franchise, LLC will not operate or grant another party the right to operate a competing center within this specified distance. For Area Development Agreements, the development area size is determined by Express Oil Change Franchise, LLC and the developer based on factors like population density and the residential and commercial nature of the area.
Staffing Notes
Express Oil Change/Tire Engineers Center locations must always have the franchisee or a trained manager on-site providing direct supervision. Franchisees have the sole responsibility for hiring, employing, scheduling, disciplining, and terminating their employees. All employees are required to wear uniforms as designated by Express Oil Change Franchise, LLC. Franchisees must also post a notice at the Center to inform employees that they are employed by the franchisee and not Express Oil Change Franchise, LLC.