Risk Score
Pending analysis
Investment Range
$291,320 - $1,972,033
Franchise Fee
$20,000
Total US Locations
26
Business Summary
Kwik Kar businesses provide oil change and preventive maintenance services for cars and trucks to the general public. Kwik Kar Centers offer automotive oil and lubrication services, preventive fluid checks, and other approved automotive maintenance and repair services without requiring appointments. Kwik Kar Centers are also required to offer brake services and sell various automotive products.
Corporate History
Kwik Kar Franchising, LLC was formed on January 22, 2024, as a Delaware limited liability company and began offering Kwik Kar franchises that same year. Kwik Kar Franchising, LLC does not operate any Kwik Kar Centers itself, but its affiliates do. The ultimate parent company, MidOcean, is a private investment group with various business concepts. An affiliate, GMI, acquired the Kwik Kar trademarks and intellectual property from Kwik Industries, Inc. in 2022, along with 56 existing license agreements for Kwik Kar Centers primarily located in Texas.
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)
$140,450
Equipment Costs (High)
$1,643,300
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kwik Kar's parent company, MidOcean FSA Holdings, L.P., incurred net losses of approximately $54.6 million in 2024 and $52.4 million in 2023. Its total revenues decreased by $9.5 million in 2024 compared to 2023. Auditors performed a goodwill impairment test due to consecutive operating and net losses, but concluded no impairment occurred as of December 28, 2024. Despite these losses, the partnership believes there are no conditions or events that raise substantial doubt about its ability to continue as a going concern, a conclusion supported by the independent auditors. As of December 28, 2024, the partnership had approximately $17.2 million in cash and cash equivalents.
Financing Details
Kwik Kar does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
26
Franchised Units
0
Corporate Units
26
Avg Square Footage
2,272
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Kwik Kar has no litigation to report in Item 3.
Bankruptcy History
Kwik Kar has no bankruptcy information to report in Item 4.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
Kwik Kar franchisees must provide advance notice of their intent to renew. They must ensure full compliance with the existing Franchise Agreement and renovate their premises to meet current brand standards. Franchisees are required to sign Kwik Kar's then-current Franchise Agreement and any related documents, which may include materially different terms and conditions, such as higher royalty and advertising contributions. They must also pay a renewal fee and execute a general release of any claims against Kwik Kar.
Training & Support Program
Franchisor Assistance
Kwik Kar provides extensive pre-opening assistance, including reviewing site selections and final lease/purchase contracts, providing a list of approved architects, and offering design specifications for the Center's build-out. Franchisees receive a confidential Brand Standards Manual, and a Kwik Kar representative will provide 3-4 days of on-site assistance at the Center's opening. Kwik Kar also provides a list of approved suppliers for equipment, signs, and inventory, and an initial training program for the franchisee or principal owner. Ongoing assistance includes additional training, seminars, and development programs, advice and consultation on operations, information on new products and services, access to advertising programs and materials, and approximately two on-site Center visits per year for consulting.
Initial Training Hours
72
Training Location
Greenwood Village, CO and franchisee's location
Ongoing Support
Kwik Kar provides ongoing support to its franchisees including additional training programs, seminars, or continuing development programs, which can be in-person or online, covering new methods, processes, marketing techniques, equipment, and products. Franchisees can request advice on their Center's operations via written materials, electronic media, or telephone. Kwik Kar also makes information available regarding any new product, service, or supplier, or updated methods of doing business. A Kwik Kar representative visits each Center approximately twice a year to provide consulting assistance. Franchisees are required to attend Kwik Kar's biennial conventions, held once every two years, for which a registration fee is charged even if attendance is missed.
Franchise Requirements
Ideal Candidate Profile
Kwik Kar does not explicitly state an 'ideal candidate profile' in terms of specific background or traits. However, it requires franchisees or their designated Principal Owner to successfully complete the initial training program. While direct personal participation in the Center's operation is recommended but not mandatory, either the franchisee, the Principal Owner, or an approved Manager must devote full-time and best efforts to the management and operation of the Kwik Kar Center.
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
Territory Size Requirements
Kwik Kar designates a geographic area, or 'Designated Area', for the site of each Kwik Kar Center. This Designated Area is typically defined by city, county, or other physical boundaries. Kwik Kar also considers factors like vehicle traffic, population size, and demographics, which may vary by location. The Designated Area is solely for site selection and does not grant any exclusive territorial rights to the franchisee.
Staffing Notes
Kwik Kar franchisees are solely responsible for all aspects of employee management, including hiring, firing, compensation, and training. Franchisees must inform all employees that they are employed by the franchisee, not Kwik Kar, and post a notice to this effect. Employees are required to maintain a professional appearance and wear specified uniforms according to the Brand Standards Manual. Franchisees must also ensure their employees take a minimum number of prescribed online courses through 'FullSpeed University' for training and certification.