Valvoline Instant Oil Change Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Valvoline Instant Oil Change is a drive-up quick-lube franchise offering fast oil changes and routine maintenance while customers stay in their cars. Franchisees run service centers managing technicians, throughput, and inventory.
FranchiseVerdict summary · 2026
A Valvoline Instant Oil Change franchise requires a total initial investment of $192K – $640K, including a $3K – $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.8M[2]. SBA 7(a) loans show a 5.4% charge-off rate across 61 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $192K – $640K
- 28th pct Automotive
- Avg gross sales
- $1.8M
- Net sales16th pct Automotive
- Royalty
- 6.0%
- 13th pct Automotive
- Units
- 2,039
- 54th pct Automotive
- SBA charge-off
- 5.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $192K – $640K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.8M/year (median $1.7M).
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better). SBA loan charge-off rate of 5.4% across 61 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Valvoline Instant Oil Change Franchising, Inc.
- Parent company
- Valvoline US LLC
- Ultimate parent
- Valvoline Inc.
- Predecessor
- OCH International, Inc. (Oil Can Henry's)
- Prior franchisor entity
- CEO title
- President
- Lori A. Flees
- Incorporated in
- Delaware
- HQ
- 100 Valvoline Way, Suite 100, Lexington, Kentucky 40509
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.7B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of VIOCF)
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Lori A. Flees
- Headquarters
- KY
- Founded
- 1988
- FDD year
- 2026
- States available
- 46
Can you afford it, and what does the money buy?
Entry cost runs 56% below the typical automotive franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Start-up Suppliesnot refundable | $22K | $30K | |
| Royalties | — | — | |
| General System Fund | $7K | $8K | |
| Local Advertising Spend or Contribution | — | — | |
| National Advertising Fund | — | — | |
| Regional Advertising Cooperatives | — | — | |
| Transfer | $3K | $30K | |
| Renewal | $3K | $5K | |
| Specialized Computer Services | $50 | $300 | |
| Computer Hardware Upgrade | $150 | $15K | |
| Product Testing and Product Suppliers | — | — | |
| Audit | — | — | |
| Interest | — | — | |
| Insurance | — | — | |
| Total initial investment | $35K | $88K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $192K – $640K
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $65K
- Top 40% of category vs category
- Franchise fee
- $3K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $30K |
| Renewal fee | $5K |
| Inventory (initial) | $22K – $30K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 27% above the automotive norm.
Reported as net sales, not gross sales
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$314K
17.0% margin
Unlevered ROIC
66%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Valvoline Instant Oil Change unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
66%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Valvoline Instant Oil Change units return on equity?
Equity IRR · 5-yr
30.6%
3.80× MOIC
Year-1 DSCR
2.63×
EBITDA ÷ debt service
Equity required
$7.9M
on $18.4M purchase
Total debt
$10.5M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- $1.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 891 outlets
- vs category median 70 · large
- Range (low → high)
- $397K→$5.7M
- Cohort dispersion (min → max)
- Quartile band
- $1.3M→$2.9M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Revenue is 4.4x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.8M/year in gross sales. Revenue-to-investment ratio: 4.4x.
Fee burden
Total ongoing fee load of 8.0% (near the Automotive average).
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 20.9% CAGR over 3 years across 2,039 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive averages
How Valvoline Instant Oil Change Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,039
- Opened
- 101
- Last reporting year
- Closed
- 2
- Turnover rate
- 0.1%
- Company-owned
- 976
- Corporate units in the system
- % franchised
- 52%
- vs corporate-owned
- Net growth (3-yr)
- +20.9%
- Net unit change over 3 years
- 3-yr CAGR
- +20.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 52
- Transfers (3yr)
- 23
- Transfer rate
- 1.4%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
- South Dakota
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 61
- Loan volume
- $44.9M
- Median loan
- $616K
- 50th percentile
- Charge-off rate
- 5.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 94.6%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 39
- Defaults
- 3
- Typical loan rate
- 6.3%
- avg rate to borrowers
- Franchised industry avg
- 14.5%
- brand beats franchise avg ↓
- Jobs supported
- 844
- 1.9 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 40% went to startups / new businesses, 60% to established operators
Franchise vs independent — in automotive oil change and lubrication shops, franchised businesses charge off at 14.5% vs 17.7% for independents — franchising is associated with 18% lower SBA default risk in this category.
Vintage analysis
Valvoline Instant Oil Change charge-off rate by loan vintage
Top lenders financing Valvoline Instant Oil Change franchisees
Showing 3 of 39 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Valvoline Instant Oil Change's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 24-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 5.4% — 67% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Very large, highly profitable system (2,039 units, net income $210.7M on $1.71B revenue, net worth $338.5M). Only 2 litigation matters — one pending California putative class action (Scott Moore, oil-change interval) and a concluded 2018 no-poach AG action — which is low relative to system size. Item 19 disclosed; the class action is the single notable flag.
Litigation (Item 3)
1 case reference(s): 1 pending, 0 settled.
Largest disclosed settlement: $28
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debt under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a d
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 78 / 100 verdict
- 01HIGH2 litigation matters vs 2,039 units — low relative to size
- 02MINORPending CA putative class action (Moore) on oil-change interval claims
- 03MINORVery strong financials: $210.7M net income, $338.5M net worth
- 04MEDItem 19 disclosed; no bankruptcy/going-concern
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Kentucky |
| Litigation count | 2 |
View Item 3 litigation summary
1 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 288 hrs
- Training location
- Franchisor's facility and on-site at Restaurant
- Time to open
- 24 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- VIOC POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: VIOC POS System
Item 20 · call current owners
Franchisee Contacts
1,061 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Valvoline Instant Oil Change · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Valvoline Instant Oil Change franchise?
The total investment to open a Valvoline Instant Oil Change franchise ranges from $192K – $640K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Valvoline Instant Oil Change franchise owners earn?
According to Item 19 of the Valvoline Instant Oil Change FDD, the average gross sales per unit is $1.8M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Valvoline Instant Oil Change FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Valvoline Instant Oil Change FDD and qualifies whose outlets they describe.
What is Valvoline Instant Oil Change's franchise failure rate?
Based on SBA 7(a) loan data, Valvoline Instant Oil Change has a charge-off rate of 5.4% across 61 loans, meaning 5.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Valvoline Instant Oil Change franchise locations are there?
As of their most recent FDD filing, Valvoline Instant Oil Change has 2,039 total units in the United States, including 1,063 franchised units and 976 company-owned units. 101 new units were opened in the latest reporting year.
Is Valvoline Instant Oil Change a good franchise to buy?
FranchiseVerdict rates Valvoline Instant Oil Change as a A-grade franchise with a verdict score of 78 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.