Grease Monkey Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$291,320 - $1,972,033
Franchise Fee
$20,000
Total US Locations
371
Business Summary
Grease Monkey operates centers that provide oil changes and preventive maintenance services for cars and trucks to the general public. Grease Monkey Centers also offer brake services and sell other approved automotive products. Customers are not required to schedule an appointment to receive services, emphasizing quick service under their Pit Crew Guarantee.
Corporate History
Grease Monkey Franchising, LLC (GMF) was formed on January 3, 2006, in Colorado and began offering Grease Monkey franchises in the same year. GMF's predecessor, Grease Monkey International, LLC (GMI), previously served as the franchisor for the Grease Monkey system from approximately September 1978 through March 2006. GMI transferred all existing Grease Monkey franchises granted before April 2006 to GMF. GMI continues to own the Grease Monkey trademarks and intellectual property, which it licenses to GMF. GMF and GMI operate under a Management Agreement where GMI provides development and ongoing assistance to GMF's franchisees. The ultimate parent company of Grease Monkey Franchising, LLC is MidOcean, a private investment group that owns various other business concepts.
Financial Overview
Investment Range
$291,320 - $1,972,033
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$39,900
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$80,450
Equipment Costs (High)
$186,650
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
MidOcean FSA Holdings, L.P., the parent company of Grease Monkey Franchising, LLC, has experienced a deterioration in the general economic environment, leading to increased labor and capital costs. This resulted in consecutive years of operating losses and net losses for the fiscal years ending December 28, 2024, and December 30, 2023. Total revenues also decreased by $9.5 million in 2024 compared to 2023. Despite these challenges, the Partnership's management believes there are no conditions or events that raise substantial doubt about its ability to continue as a going concern. As of December 28, 2024, the Partnership maintained approximately $17.2 million in cash and cash equivalents and remained in compliance with all debt covenants related to its Senior Facility.
Financing Details
Grease Monkey Franchising, LLC does not offer any direct or indirect financing to its franchisees. Grease Monkey Franchising, LLC also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
371
Franchised Units
209
Corporate Units
162
Avg Square Footage
2,272
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Grease Monkey Franchising, LLC is involved in one ongoing class action lawsuit. This lawsuit was commenced on August 13, 2024, in California and alleges that Grease Monkey franchisees, Grease Monkey International, LLC, and Grease Monkey Franchising, LLC committed negligence and violated the Unruh Civil Rights Act. The plaintiffs, male patrons, claim that 'Ladies' Day' promotions offering discounts constitute gender-based discrimination. Grease Monkey Franchising, LLC has denied these allegations. One franchisee involved in the case filed a cross-complaint seeking indemnification, which is currently stayed pending the resolution of the main class action. No further action has been taken in the case as of the FDD's issuance date.
Bankruptcy History
Grease Monkey Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Grease Monkey franchisees must fulfill several conditions. They must provide advance notice, renovate their premises if required to meet current brand standards, and be in full compliance with their existing Franchise Agreement, without having received more than four breach notifications during the term. Additionally, franchisees must not be in default or under notice of breach at the time of renewal, must execute the then-current form of franchise agreement (which may have different terms regarding royalties and advertising contributions), pay a renewal fee (which can be waived or reduced based on notice period and chosen term length), and sign a general release of claims against Grease Monkey Franchising, LLC and its affiliates.
Training & Support Program
Franchisor Assistance
Grease Monkey Franchising, LLC provides extensive support to its franchisees. Before opening, it assists with site selection review, provides a list of approved architects along with build-out specifications, offers on-site assistance between the actual opening and grand opening, and supplies information about approved vendors. Franchisees also receive an initial training program in Greenwood Village, Colorado, lasting approximately 72 hours. Ongoing support includes additional training, seminars, and development programs offered both in-person and online, advice based on performance reports and inspections, information regarding new products, services, and suppliers, access to advertising and promotional programs, and approximately two biennial visits to the center by a representative.
Initial Training Hours
72
Training Location
Greenwood Village, CO
Ongoing Support
Grease Monkey Franchising, LLC provides its franchisees with continuous support after opening. This includes offering additional training, seminars, and ongoing development programs which can be delivered in person or online. Franchisees receive advice and consultation by telephone, fax, or email regarding the operation and management of their Grease Monkey Center. The franchisor also makes information available on any new products, services, suppliers, or updated business methods. A Grease Monkey representative visits each center approximately twice a year to provide consulting assistance. Franchisees also have access to the franchisor's advertising and promotional programs and materials.
Franchise Requirements
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
Non-Exclusive
Staffing Notes
Grease Monkey Franchising, LLC states that the franchisee is solely responsible for managing its employees, including hiring, firing, training, and setting work schedules. If the franchisee's principal owner does not directly manage the center, an approved manager must be designated to provide direct on-premises supervision, and this manager must devote full-time efforts to the business. Employees must maintain a professional appearance as outlined in the Brand Standards Manual and wear specified uniforms. Franchisees must also ensure their employees complete mandatory online courses prescribed by FullSpeed University to comply with operational standards and applicable laws.