RESALE DEAL KIT · FDD ITEMS 6, 17 & 20
Buying an existing JIFFY LUBE franchise
JIFFY LUBE units do come up for sale: its own FDD Item 20 shows 51 franchised outlets transferred to new owners in fiscal 2025 — 3.0% of the 1,721 franchised outlets open at the start of the year, and 159 across 2023–2025. The 2026 FDD sets the transfer fee at $3,500 plus costs. This kit covers the franchisor's transfer terms, the resale record, a check on the asking price, and what to get from the seller.
| Term | What JIFFY LUBE's FDD says | Source |
|---|---|---|
| Transfer fee | $3,500 plus costs$3,500 plus franchisor's actual expenses; no fee for transfer to family of deceased/incapacitated franchisee or a non-controlling interest | Item 6, PDF p. 29$3,500 plus our actual |
| Franchisor consent standard | Consent may not be unreasonably withheldFranchisor approval is required but may not be unreasonably withheld. | Item 17(l), PDF p. 70may not be unreasonably withheld |
| Franchisor right of first refusal | Yes — the franchisor can match your buyer's offer (20 days to decide)The franchisor has a right of first refusal if you accept an offer to buy the franchise or an interest in it. | Item 17(n), PDF p. 70we have 20 days after notice to exercise |
| Buyer signs the then-current agreement | Yes — the buyer signs the then-current franchise agreementThe buyer must sign the then-current standard form of franchise agreement offered to new franchisees. | Item 17(m), PDF p. 70execution of then-current standard form of franchise agreement then being offered to new franchisees |
| Term the buyer gets | The remainder of the seller's termOn a transfer, the buyer's term equals the remaining term of the seller's franchise agreement. | Item 17 note 1, PDF p. 71the term will be equal to the remaining term of the transferor's Franchise Agreement |
| Remodel / upgrade at transfer | Not addressed in the Item 17 summary — ask, and read the franchise agreement's transfer section | Item 17, PDF pp. 69–72 |
| Buyer must complete training | RequiredThe buyer must satisfy the franchisor's training criteria as a condition of transfer. | Item 17(m), PDF p. 70satisfaction of training criteria |
| General release of claims | RequiredThe transfer requires a release of claims against the franchisor. | Item 17(m), PDF p. 69release of claims against us |
Item 17 is the FDD's summary of the franchise agreement. The agreement itself controls, and a resale buyer usually signs the franchisor's current one, so check these terms against the FDD you will actually be given. Software read each value from the filing text, and each quote was matched back to that text. Values we could not match are left out, not guessed.
| Fiscal year | Transfers | % of franchised units | Exits | Reacquired | Franchised at start |
|---|---|---|---|---|---|
| 2023 | 45 | 2.7% | 16 | 9 | 1,683 |
| 2024 | 63 | 3.7% | 15 | 0 | 1,710 |
| 2025 | 51 | 3.0% | 21 | 2 | 1,721 |
A transfer is an owner selling a unit that keeps operating. An exit is a unit that left the system. Item 20 doesn't say why any unit left or what any unit sold for. In JIFFY LUBE's latest year, transfers ran well ahead of exits, which fits owners finding buyers rather than handing units back. Reacquisitions (2 in fiscal 2025) are the franchisor buying units back. Ask whether that was strategy or a rescue. A location that has changed hands repeatedly is the classic churning pattern, so ask how many owners yours has had and call the last one. Former franchisees are listed in the FDD exhibits.
Financing assumptions (change to your lender's terms)
- Equity default: SBA SOP 50 10 (version 8 onward, now 8.1): minimum 10% equity injection on a complete change of ownership, of which a seller note on full standby can cover part. Lenders often ask for more. SBA SOP 50 10
- Rate and term default: 9.49% (shown rounded) is the median initial rate on 10-year SBA 7(a) loans to franchise brands approved FY2026 (Oct 2025 – Jun 2026, n = 2,206), from SBA loan-level data. Most 7(a) rates float with Prime, so use your lender's quote.
Enter the asking price to start. Nothing you type leaves this page.
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
- Three years of P&Ls and the matching federal tax returns. Monthly or quarterly P&Ls plus the business returns for the same years. If the returns show less profit than the P&Ls, the returns are usually closer to the truth.
- The royalty and sales reports filed with JIFFY LUBE. The seller paid royalties on this revenue, which makes it the hardest number in the deal to inflate. It should tie to the P&L top line.
- Bank statements for the same period. Deposits are the third check on revenue, and they show cash a P&L can hide.
- The add-back schedule behind the “owner benefit” or SDE figure. List every add-back with its support. For each one, ask whether the cost will exist for you. A manager you'll have to hire is a cost, not an add-back.
- Every notice from the franchisor: defaults, cures, inspections and audits. Ask for three years of them. An open default can block the transfer or become your problem the day you close.
- The lease, all amendments, and the landlord's consent terms. You need the remaining term and renewal options, any rent steps, and the personal guarantee that assignment may require of you.
- Equipment list with ages, plus any equipment leases and liens. Run a UCC lien search. Note what the franchisor will make you replace at transfer.
- Payroll records and the staff roster. Who is staying, at what wage, and whether the seller's own unpaid hours are propping up the margin.
- The seller's franchise agreement and amendments. Check the remaining term and any side letters, discounts or territory rights. These often don't carry over to a buyer.
- The current JIFFY LUBE FDD and the agreement you will sign. A resale buyer still gets an FDD, and usually signs today's agreement. Its royalty, fees and territory terms can differ from the seller's.
Ask the seller
- Why are you selling, and when did you decide?Then ask neighbouring owners and the franchisor the same question. The answers should match.
- How many owners has this location had, and who did you buy it from?If it has changed hands repeatedly, call the earlier owners.
- Has the franchisor sent you any default, cure or compliance notice in the last three years?Get copies. Ask if anything is open today.
- Do the P&Ls tie to the tax returns and the royalty reports, year by year? If not, why not?
- How many hours a week do you work in the business, and in which roles?If you won't fill those roles yourself, that labour is a cost.
- Will you carry a seller note, and will you stay on for a transition period?Under SBA rules a seller note can count toward your equity only if it is on full standby.
Ask JIFFY LUBE (the franchisor)
- Please confirm in writing the transfer fee and every condition you will set for this transfer.The 2026 FDD summary is a starting point. The conditions that bind you are the ones the franchisor sets for this deal.
- Send me the current franchise agreement I would sign, and list how it differs from the seller's: royalty, ad fund, technology fees, territory and term.JIFFY LUBE's FDD says the buyer signs the then-current agreement, so the seller's economics may not transfer.
- How many years are left on the seller's term, and what will renewal require and cost?Per the FDD, the buyer gets only what is left of the seller's term. A short tail means you are pricing a short business.
- Will you require any remodel, upgrade or equipment replacement at transfer?
- Will you waive your right of first refusal on this deal? If not, how long do you have to decide?JIFFY LUBE can step in and buy the unit on your terms (20 days, per the FDD). Your diligence spend is at risk until that window closes.
- When and where is the training I must complete, what does it cost, and can the sale close before I finish it?
- Is this unit in good standing today: royalties current, no open defaults, no pending audit?
- How many units resold in the last three years, and at what prices or multiples?Item 20 counts transfers, but not prices.
- Is a new unit, or a non-traditional location, planned inside or next to this territory?
Ask other owners and the previous owner
- Call the previous owner of this location, if the seller isn't the first: why did they sell?
- Ask recent resale buyers: did the transfer go as the FDD describes? How long did approval take, and were there surprise upgrade costs?
- Ask owners nearby what units like this one actually sold for, and what they clear after debt service.
SBA 7(a) loans finance franchise resales routinely. The bank underwrites the unit's real historicals rather than a projection. Lenders will know the brand's loan record. SBA loans to JIFFY LUBE franchisees approved 1991–2020 defaulted far less often than franchise loans made in the same years: 5 charge-offs among 109 resolved loans, where about 16 would be expected (0.3×). Across all years, 5 of 116 resolved loans were charged off (raw rate 4.3%, all eras mixed). Borrowers are matched to the brand by name and SBA franchise code.
The Deal Review on a resale ties three years of the seller's P&Ls to the tax returns and the royalty reports, tests every add-back in the “owner benefit” figure, and works out what the unit clears after your debt service. It is an analysis. It is not an audit, a review or a quality-of-earnings attestation. Start with the free call. It is an educational session, not an engagement.
Talk through a resale →For comparison, the franchisor's Item 7 estimate to open a new JIFFY LUBE is $211K–$510K (2026 FDD). Cost breakdown →
The JIFFY LUBE validation checklist
questions built from this brand's own filings · read them all on the profile
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if JIFFY LUBE’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing JIFFY LUBE’s numbers, including talking you out of a bad deal.