Bottom line
- Total investment $291K – $2.0M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $890K). Estimated payback in 5.0 years.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 242 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Grease Monkey unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Grease Monkey units return on equity?
Equity IRR · 5-yr
38.3%
5.06× MOIC
Year-1 DSCR
2.18×
EBITDA ÷ debt service
Equity required
$4.0M
on $12.8M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-lube automotive service centers performing oil changes, fluid top-ups, filter replacements, and basic maintenance. Day-to-day operations involve managing technicians, scheduling appointments, handling customer service, managing inventory, and driving sales through promotions (including the disputed 'Ladies' Day' marketing).
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Grease Monkey presents moderate-to-elevated risk due to active litigation, unprotected territories, slow growth, and lack of financial transparency, offset partially by reasonable unit economics if claimed revenues hold.
Score breakdown · what drove the 46 / 100 rating
- 01HIGHActive class action litigation (Aug 2024) for gender-based discrimination creates legal/reputational risk and potential operational mandate changes
- 02MINORUnprotected territory exposes franchisees to direct competition from other Grease Monkey locations and cannibalization of revenue
- 03MINORSlow unit growth (4.0% YoY) suggests market saturation or franchisee satisfaction issues; 371 units is modest for a mature brand
- 04HIGHNo Item 19 Financial Performance Representation (Going Concern = False) prevents validation of claimed $227K net income; actual franchisee profitability opaque
- 05MINORHigh royalty burden (6.0%) combined with $39,900 franchise fee and $291K-$2M initial investment creates 5-7 year breakeven pressure if revenue underperforms
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Grease Monkey · FDD (2025) PDF