Top 200 Franchise by Entrepreneur – Rank no.3 – Jiffy Lube Int’l. Inc. – US
Products & Services: Fast oil change
Number of Locations: 2,084
Total Investment: $196.5K – 376K
Began Franchising: 1979
The 2007-present logo
|Type||Wholly owned subsidiary|
|Headquarters||Houston, Texas, U.S.|
|Number of locations||over 2,200 (2008)|
|Key people||Stu Crum, President
Peter Walsh, President North American Stores
|Parent||Shell Oil Company|
About Jiffy Lube Int’l. Inc.
The decline of full-service gas stations in the 1970s left many consumers without their traditional sources for oil changes. Jiffy Lube began under Jim Hindman in 1979 as an association of seven fast-lube centers in the Western United States. Jiffy Lube Int’l. Inc. was acquired by Pennzoil-Quaker State Co. in the 1990s, which was then acquired by Shell Oil Company in 2002. Jiffy Lube has franchised locations throughout the U.S. and Canada.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $0 – $7,500
Ongoing Royalty Fee: 3%
Term of Franchise Agreement: 20 years, renewable
Net Worth: $450,000
Liquid Cash Available: $150,000
80% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 10. Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators).
|FINANCING TYPE||IN-HOUSE||THIRD PARTY|
How This Franchise Supports Franchisees
Franchise Ranking History
Jiffy Lube consists of more than 2,000 franchised service centers throughout North America and Canada, serving approximately 24 million customers each year. Jiffy Lube service centers are 100% franchise-owned, independently owned and operated by 252 entity groups. Headquartered in Houston, Texas, Jiffy Lube is a wholly owned, indirect subsidiary of the Shell Oil Company. The company was ranked first on National Oil and Lube News 2011 Tops in the Fast Lubes Industry Rankings  Also, Jiffy Lube was ranked number 15 in Entrepreneur Magazine’s 2012 Franchise 500  and number 73 on Franchise Times 2011 Top 200 Franchise Chains by Worldwide Sales.
The first Jiffy Lube store was established on 36th Street in Ogden, Utah by Edwin H. Washburn as early as 1971. Over the following years, Washburn franchised a number of Jiffy Lube centers in within Utah. In 1979, then-football coach at Western Maryland College W. James Hindman bought out Washburn’s seven franchises and established Jiffy Lube International, relocating to Baltimore, Maryland. It is this year which Jiffy Lube generally states as its founding date with Hindman as its founder.
Jiffy Lube went public in 1987, and had opened 1,020 franchises and company stores by 1989. At this point, Jiffy Lube posted a $39 million loss on $350 million in sales and declared bankruptcy. This is the equivalent of $73.4 million and $659 million respectively in present day terms. In 1991, Jiffy Lube became a subsidiary of Pennzoil.
Following the merger of Pennzoil and Quaker State in 1998, the 581 Q Lube stores were merged into the Jiffy Lube brand, then possessing 1,541 stores, with overlapping operations being closed down. Pennzoil-Quaker State was ultimately purchased by Shell Oil in 2002.
The core offering of Jiffy Lube remains the Jiffy Lube Signature Service® Oil Change, a service that offers customers more than just a standard oil and filter change. In June 2011, Jiffy Lube introduced a new program called Oil Change Schedule (OCS). The new program allows Jiffy Lube customers to choose how often they have their oil changed based on a number of variables including vehicle manufacturer recommendations, driving habits, and road conditions. The OCS program moves away from the old model of changing oil every 3,000 miles and provides a schedule that is unique for each driver. 
In 2003, Jiffy Lube was the focus of a KNBC investigative report that alleged that Jiffy Lube was charging customers for services not performed. During the investigation, five out of nine Jiffy Lube locations charged undercover reporters for work that was not performed. After the investigation aired, Jiffy Lube claimed to perform sweeping changes to their training program to prevent this; however, according to an interviewee, those training changes included how to spot investigative journalists. At the end of the investigation, Jiffy Lube installed cameras in their stores to allow customers to observe repairs. 
In 2009, Jiffy Lube was found to be performing repair procedures on vehicles that were recommended against by the manufacturer due to the potential to cause engine damage. These procedures included engine flushes and fuel injection cleaning which can cause engine and fuel injection problems.
In May 2013, Jiffy Lube was again the subject of a NBC (Los Angeles) television investigation. The station reported that not only had fraudulent practices again been detected at the majority of investigated Southern California Jiffy Lube stores, but that the current fraud was worse than that found in the original investigation.