Qualifications for
Ownership

Financial

Cash available to invest: $150,000
Net worth: $450,000
Credit Score: 680 or above

Personal

You need to be energetic, good with people, and committed to being actively engaged even if you are an absentee owner.
You must also have a clean criminal history.

Fees (plain and simple)

Franchise fee: $39,900*
Royalties: 6%**
Advertising Contribution: 6%***

Some Discounts apply. See below for details.

* The Initial Franchise Fee for a single SpeeDee center is $39,900. If you are a Conversion Owner, the Initial Franchise Fee is $20,000 for your first converted location and $10,000 for each additional converted location. If you are a Veteran or first responder, the Initial Franchise Fee is $25,000. We offer a reduced Initial Franchise Fee of $20,000 for existing franchisees (unless you are also a veteran, then the Initial Franchise Fee is further reduced to $10,000) who are eligible to participate in the Incentive Program.

Multi-Unit Franchisees must open a minimum of three SpeeDee centers. You will sign a Franchise Agreement for your initial SpeeDee center and pay an Initial Franchise Fee of $35,000 for that center and then also sign a Multi-Unit Agreement, which will designate how many additional centers you will develop, and pay a Multi-Unit Fee equal to a reduced Initial Franchise Fee of $20,000 for the second SpeeDee center, and $15,000 for each additional SpeeDee center you intend to open under the Multi-Unit Agreement.

** Royalty; Gross Revenues. The Royalty owed for sales of brake products and brake repair services only (as described in the Franchise Agreement) will be a reduced rate of 5% of Gross Revenues. The Royalty for all other revenue will be equal to 6% of Gross Revenues. The Minimum Royalty Fee to be paid to us is $225 per week. Gross Revenues include the aggregate amount received from all sales of services, products or merchandise of every kind or nature (including, without limitation, any services or products that have not been approved or authorized by us), performed or sold from, at or in connection with the operation of the SpeeDee center or arising out of the operation or conduct of the SpeeDee center or, if Franchisee is an entity, arising out of the operation or conduct of any business by such entity, whether for cash or credit, but excluding (i) the amount of the discount given off the regular retail price of such services or products in connection with the use of coupons or other discount promotions; and (ii) federal, state or municipal sales or services taxes collected from customers and paid to the appropriate taxing authority.

Incentive Royalty Rebate Programs. If you are eligible for the Incentive Program or if you operate a Conversion Franchise or are a veteran or first responder, you are entitled to participate in our Incentive Royalty Rebate Program during the first two years of operations after you open your Center. Under the Incentive Royalty Rebate Program, provided you are in full compliance with the Franchise Agreement you are eligible to receive a 50 percent rebate of the Royalty paid to us during the first year of operations and a 25 percent rebate of the Royalty paid to us during the second year of operations. This rebate will be calculated on a quarterly basis and will be paid before the expiration of the subsequent quarter.

*** The Advertising Contribution will be the greater of 6 percent of your Gross Sales or $225 per week. The Advertising Contribution is currently spent as follows: 1) 0.5 percent of Gross Revenues is spent on the system-wide “National Marketing Fund” (also known as the “NMF”), and 2) the remainder is split as determined by the regional advertising cooperative in your region (also known as the “Designated Market Area” or “DMA”) between regional and local advertising. In most designated market areas, 3.5 percent of Gross Revenues is spent on the DMA Program and 2 percent of Gross Revenues is spent on local advertising (also known as “Local Store Marketing” or “LSM”). We reserve the right to modify the amounts of the Advertising Contribution to be spent on each program or the proportional distribution between the NMF, DMA and LSM funds. We also reserve the right to increase your required Advertising Contribution to the greater of $265 per week or 7 percent of Gross Revenues.

Incentives

Discounts for Veterans and First Responders: Initial Franchise Fee is reduced to $25,000 and a 50% rebate on all royalty fees.

Discounts for multi-unit operators: Franchise fees are discounted to $20,000 for the second SpeeDee center opened, and $15,000 for each additional unit opened by a franchisee after the second.

Discounts for independent business owners who convert their automotive locations to a SpeeDee: The Initial Franchise Fee is reduced to $20,000, and a 50% rebate on all royalty fees.

Startup Costs

Type of Expenditure¹

NOTE 1: General. The high and low ranges in the chart are based on a single Franchise Agreement and the lease of an eight-bay Center utilizing a “build-to-suit” developer. The low ranges in the chart assumes you are purchasing a Conversion franchise, and may not need to incur all of these expenses.

Initial Franchise Fee²

$10,000 ^(LOW) | $39,900 ^(HIGH)

Method of Payment:

Lump Sum, or Installments, As Applicable

When Due:

When you sign the Franchise Agreements or As Agreed

To Whom Payment is Made:

FullSpeed Automotive^®

Initial Franchise Fee and Multi-Unit Fee. The Initial Franchise Fee for a single SpeeDee Center is $39,900. If you are a Conversion Owner, the Initial Franchise Fee is $20,000 for your first converted location and $10,000 for each additional converted location. If you are a Veteran or first responder, the Initial Franchise Fee is $25,000. We offer a reduced Initial Franchise Fee of $20,000 for existing franchisees (unless you are also a Veteran, then the Initial Franchise Fee is further reduced to $10,000) who are eligible to participate in the Incentive Program. See Item 5 for more information on the Initial Franchise Fee.

Multi-Unit Franchisees must open a minimum of three SpeeDee Centers. You will sign a Franchise Agreement for your initial SpeeDee Center and pay the Initial Franchise Fee noted above for that Center, and then also sign a Multi-Unit Agreement which will designate how many additional Centers you will develop, and pay a Multi-Unit Fee equal to a reduced Initial Franchise Fee of $20,000 for the second SpeeDee Center, and $15,000 for each additional SpeeDee Center you intend to open under the Multi-Unit Agreement. The chart shows the Multi- Unit Fee for the minimum two additional SpeeDee Centers that must be opened under the Multi-Unit Agreement. The Multi-Unit Agreement must be paid in full when you sign the Multi-Unit Agreement and is not refundable under any circumstances, even if you fail to open any SpeeDee Centers. See Item 5 for more information about your Multi-Unit Fee.

Lease and Real Estate³

$28,000 ^(LOW) | $70,400 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As specified in Lease or Sublease

To Whom Payment is Made:

SWRC or Lessor

Lease, Real Estate and Improvements. Typically, you will enter into a third party lease for the property of your SpeeDee Center and negotiate your own payment terms, or you may acquire land and construct the building and improvements yourself. If you enter into a third party lease for the property, a common arrangement utilized by franchisees is to secure a “build-to-suit” lease. In this type of a lease, the landlord pays some or all of the lease improvement costs. Your rent rate is based in part on those costs. For a third party lease, we estimate the rent for the first month to be in a range of $7,000 to $17,600 for an eight-bay unit and the security deposit is usually equal to one or two month’s rent. The chart shows one month’s rent and a security deposit equal to one month’s rent. The estimated cost to purchase a site for a SpeeDee Center ranges from approximately $440,000 to $880,000 for land and $770,000 to $990,000 for an eightbay building.

Alternatively, in certain circumstances, SWRC may sublease the SpeeDee Center to you. When you sublease the property from SWRC, the first month’s rent and taxes must be paid on the commencement date agreed to, and you will be required to remit a security deposit that is equal to one month’s rent and taxes. If you sublease the property from SWRC, your actual rent will be the amount that is agreed on by you and SWRC, which varies on the location, but is generally the greater of the fixed minimum rent (generally, $4,028 - $9,488 per month plus CAM (generally between $500 and $5,280 per month) and taxes) or up to 10 percent of the SpeeDee Center’s Gross Revenues. The amount you pay SWRC for rent under the sublease may exceed the amount of rent SWRC pays the landlord. Any difference in rent based on the SpeeDee Center’s Gross Revenues is calculated after calendar year-end and is due by March 1st of the succeeding year or as otherwise agreed. You will also be responsible for paying real estate taxes, insurance, and all other expenses agreed to, which will vary by location. You will authorize SWRC to debit the amount of rent, real estate taxes, and other monetary obligations from your account on or after the first of each month via EFT. Our current form of sublease is attached to this Franchise Disclosure Document in Exhibit G. If you sign a sublease, your sublease may contain different terms specific to your location.

You need a site of approximately 30,000 square feet, but smaller sites may be acceptable. Smaller sites may be used if there is adjoining common usage space such as a shopping center. The standard eight-bay building is approximately 88 feet by 53 feet and contains approximately 4,664 square feet on the main level of the building (the basement, which contains approximately 1,590 square feet, is not included in the 4,664 square foot estimate). Your building should have drive-through capability and an in-ground car service basement area unless we authorize you to use a different configuration, such as “zip pits” and/or “auto-service pits” rather than an inground car service basement area. Preferred sites are located on major streets or within high volume shopping areas. Acceptable levels of vehicle traffic, population size and demographics of an area may vary from location to location. You must negotiate your lease of, or financing for the purchase of, the real estate and the construction or conversion of a building to a SpeeDee Center designed to meet our specifications. Typical locations for SpeeDee Centers are in retail and commercial areas. You may also be required to pay property taxes and other leasehold costs. This amount may vary depending upon the location of the retail space, local market conditions, and other factors.

Leasehold Improvements³

$0 ^(LOW) | $150,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Incurred

To Whom Payment is Made:

Third Parties

Utility Deposits, Licenses & Permits⁴

$5,500 ^(LOW) | $18,150 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Utilities and/or Government Agencies

Insurance⁵

$2,200 ^(LOW) | $6,600 ^(HIGH)

Method of Payment:

As Arranged

When Due:

Before Opening

To Whom Payment is Made:

Insurance Companies, Agency or Broker

Insurance. You must obtain and maintain, at your own expense, the insurance coverage we require, and satisfy other insurance-related obligations. These amounts are paid to third parties that will dictate the nature and frequency of the payments. Please note that if you have had prior issues or claims from previous operations unrelated to the operation of a SpeeDee Center, your rates may be significantly higher than those estimated above.

Equipment, Furniture, Tools and Installation⁶

$69,000 ^(LOW) | $171,500 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Designated Suppliers or Third Parties

Equipment, Furniture, Tools and Installation. You must obtain the following equipment: oil lubrication and dispensing, tune-up, diagnostic, brake lathes and accessories, air conditioning, radiator flush, lift(s), computer hardware and software, transmission flush, fluid maintenance, compressors, tools and other miscellaneous equipment, machinery, and trade fixtures. The following equipment is optional: exhaust and tire machines and emissions (smog) analyzer (optional, but recommended). Purchasing any necessary equipment for emissions or state inspections is required in all states mandating such programs. The cost of this equipment may vary depending upon whether you already have some or all of this equipment, or if the equipment is purchased or leased. The equipment estimates do not include applicable sales and use tax, if any. You must obtain, at your expense, specific computer hardware and software and training in its use. Emissions (smog) equipment costs, if applicable, can vary greatly depending on whether the Center is located in an “enhanced” area or not.

Emissions (Smog), Analyzer (if Applicable)

$0 ^(LOW) | $44,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Office & Waiting Room Furniture⁷

$3,000 ^(LOW) | $10,560 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Telephone System

$550 ^(LOW) | $3,300 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Grand Opening Costs⁸

$10,000 ^(LOW) | $15,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Incurred

To Whom Payment is Made:

FullSpeed Automotive or Third Parties

Grand Opening Costs. You should plan to spend a minimum of $10,000 on your Grand Opening, not including labor, cost of goods and discounts or special offers. You will plan the Grand Opening with us or our designee, and it will include advertising and promotional campaigns to be conducted at or around the time your Center opens or within 30 days of opening and will last for as long as four to six months. Within 30 days after the completion of your Grand Opening, you will submit a summary of your expenditures for the Grand Opening. We may provide the Grand Opening services to you (See Item 11). If we provide such Grand Opening services, you will pay to us the Grand Opening Costs at the time you secure a Location (See Item 5.)

Initial Inventory⁹

$14,500 ^(LOW) | $30,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Designated Suppliers or Third Parties

Signs¹⁰

$13,200 ^(LOW) | $33,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Shipping & Installation Costs - Signage

$7,260 ^(LOW) | $15,730 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Supplies

$2,000 ^(LOW) | $4,500 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Incurred

To Whom Payment is Made:

FullSpeed Automotive or Third Parties

Initial Training-Travel & Lodging Expenses¹¹

$1,000 ^(LOW) | $5,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Initial Training – Travel & Lodging Expenses. We provide training at our support center in Greenwood Village, Colorado or at another location designated by us. We reimburse you for the reasonable travel and lodging expenses for up to two people to attend initial training up to a maximum total amount of $5,000 for your first SpeeDee Center. The estimated amount in the chart represents the travel and living expenses you would incur if you bring more than two people to our initial training program and for any travel and living expenses you incur above $5,000 for the initial two people attending. This amount will vary depending on the number of additional people attending, the length of your instruction, the distance you must travel and the standard of living you desire while you attend the program. If you are acquiring a second location or subsequent SpeeDee Center, or if you are acquiring a SpeeDee Center from another franchisee, we do not reimburse you for your travel and lodging expenses to attend the classroom training. In that case, you expenses may be higher than shown in the chart.

Computer Hardware and Software and Shipping¹²

$10,500 ^(LOW) | $19,500 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Third Parties

Computer Hardware and Software and Shipping. The estimated initial investment includes costs related to the purchase of computer hardware and software. We reserve the right to require that you purchase hardware and proprietary software from a vendor approved by us and which has been developed for use in the operation of SpeeDee Centers. Currently, Sage Microsystems, Inc. is the only approved point of sale vendor. Item 11 has more information on Computer Hardware and Software. This amount also includes three months of maintenance and update services from Sage Microsystems, Inc. (currently $2,029 per year with a 5 percent pre-pay discount or $178 per month – with no additional modules), and a monthly charge for the NexGen electronic management reporting system (we currently pay the $39 per month cost; however, you must pay $66.50 per month if you choose to be on your own NexGen site, an additional $33 per month if you elect to set-up shared customers and accounts receivables between Centers, and an additional $88 per month if you choose to add the Epicor ISE Repair Program module). See Item 11 below for more information.

Point of Sale Maintenance Fee¹²

$654 ^(LOW) | $1,038 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Agreed

To Whom Payment is Made:

Third Parties

Professional Fees

$1,100 ^(LOW) | $3,850 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Your Attorneys, CPAs, and Other Professionals

Miscellaneous¹³

$2,200 ^(LOW) | $11,000 ^(HIGH)

Method of Payment:

As Arranged

When Due:

As Incurred

To Whom Payment is Made:

Third Parties

Additional Funds (3 months)¹⁴

$44,000 ^(LOW) | $80,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Incurred

To Whom Payment is Made:

Third Parties

Additional Funds. This amount includes estimated operating expenses you should expect to incur during the first three months of operations. It includes payroll costs (but not a draw or salary for you), taxes, utilities, advertising, rent, accounting and other professional fees, and other operational expenses that are not covered by sales revenue. You may have additional expenses starting your business. We relied on the 40 years of experience of us and our predecessors offering and selling franchises of the type being offered under this Disclosure Document, as well as the decades of experience of our affiliates in offering and selling franchises, when preparing these figures. Our estimates are based on our experience, the experience of our predecessors and affiliates, and our current requirements for SpeeDee Centers.

Total Estimated Initial Investments

$224,664 ^(LOW) | $733,028 ^(HIGH)

MULTI-UNIT AGREEMENT ^{1, 2}

Development Fee¹

$35,000 ^(LOW) | $35,000 ^(HIGH)

Method of Payment:

Lump Sum

When Due:

When you sign the Multi-Unit Agreement

To Whom Payment is Made:

FullSpeed Automotive^®

1. Multi-Unit Franchisees must open a minimum of three SpeeDee Centers. You will sign a Franchise Agreement for your initial SpeeDee Center and pay the Initial Franchise Fee noted above for that Center, and then also sign a Multi-Unit Agreement which will designate how many additional Centers you will develop, and pay a Multi-Unit Fee equal to a reduced Initial Franchise Fee of $20,000 for the second SpeeDee Center, and $15,000 for each additional SpeeDee Center you intend to open under the Multi-Unit Agreement. The chart shows the Multi-Unit Fee for the minimum two additional SpeeDee Centers that must be opened under the Multi-Unit Agreement. The Multi-Unit Agreement must be paid in full when you sign the Multi-Unit Agreement and is not refundable under any circumstances, even if you fail to open any SpeeDee Centers. See Item 5 for more information about your Multi-Unit Fee.

2. This chart does not include the initial investment to open each of the Centers under the Multi-Unit Agreement. The initial investment for opening your first SpeeDee Center is described separately in the first chart of this Item 7.

How Much Can I Make?

$1,385,243^*

Average gross revenue for Top 50% of sales averages

$363,855^*

Average EBITDAR for Top 50% of sales averages

*Based on franchisee-owned SpeeDee Oil Change & Auto Service^® centers that were in the Top 50% of average sales for fiscal year 2020. Performance may vary. This information appears in our 2021 FDD under Item 19.

Sales averages for franchisee-owned units

The data above includes a historic financial performance representation for the calendar year 2020 from franchisee-owned Centers located in the United States that, in each case, were in operation for more than one year as of December 31, 2020, operated the entire calendar year 2020, and who provided complete Profit and Loss Statements to us (“Subset”). 40 Centers fall within the Subset. The Top 50% of sales averages represents the 20 units with sales in the top half of the Subset.

The total number of franchisee-owned Centers located in the United States as of December 31, 2020, was 74. The 34 Centers not included in our data set include Centers that commenced operations during calendar year 2020 or otherwise did not operate for the entire calendar year 2020, Centers that were involved in transfers during calendar year 2020 and thus the current owners did not operate for the entire calendar year 2020, and Centers for which complete Profit and Loss Statements were not provided to us. We had three franchisee-owned Centers that closed during the year 2020, one was opened for less than 12 months.

More details can be found in in the Item 19 section of our Franchise Disclosure Document.

Path To ownership

SpeeDee Oil Change & Auto Service^® has designed a process to help you learn more about the brand – and for us to learn about you – before any franchise agreements are signed. We want to make sure franchisees are set up for success. Here’s an outline of our process.

Step 1: Initial Conversation

After you fill out a contact form on this site, we’ll reach out for a short conversation to confirm that you are likely to qualify for the opportunity and that your desired territory is available. We’ll want to know about your background and goals as well.

Step 2: Franchise Qualification Questionnaire

Next, we’ll ask you to fill out a secure questionnaire with details about your assets, business experience, and Social Security info. This allows us to perform a simple background check, which is an important way that we protect the value of the brand for all franchisees. If everything looks good, we’ll start digging into the details of the opportunity.

Step 3: We’ll send our Franchise Disclosure Document (FDD)

We will send you our Franchise Disclosure Document and will need you to verify receipt. Per Federal Trade Commission rules, you won’t be allowed to sign a franchise agreement until at least 14 days after you acknowledge receipt of the FDD.

Step 4: FDD review

The FDD outlines the terms of the franchise agreement, provides background about the company and leadership, and offers details about costs, fees, and historic revenue. The format is dictated by the Federal Trade Commission, so there’s a fair bit of legal language. We’ll walk you through the document and will answer any questions you have about the various sections and terms.

Step 5: Validation

We will give you the names and phone numbers of all SpeeDee franchisees so you can ask them questions about the brand and their performance. Feel free to ask any questions you may have, but our primary role is to help facilitate conversations with anyone you’d like to reach.

Step 6: Discovery Day

You’ll meet the SpeeDee Oil Change & Auto Service® and FullSpeed Automotive® leadership teams. You’ll hear about our vision for growth, and department heads will walk you through the support that they provide franchisees. We encourage you to ask questions.

Step 7: FARE Approval

The FARE committee will evaluate whether they consider you a strong fit for the brand. If so, you’ll be offered a Franchise Agreement.

Step 8: Franchise Agreement Awarded

You’ll be sent the franchise agreements to review and sign.

Step 9: Franchise Agreement Signed

Pretty self-explanatory. Once we have your signed agreement, it’s full speed ahead!

Step 10: Onboarding Call!

We’ll schedule an onboarding call and begin the process of making your new business a reality!

Qualifications for Ownership

Financial

Personal

Fees (plain and simple)

Incentives

Startup Costs

Type of Expenditure1

Initial Franchise Fee2

Lease and Real Estate3

Leasehold Improvements3

Utility Deposits, Licenses & Permits4

Insurance5

Equipment, Furniture, Tools and Installation6

Emissions (Smog), Analyzer (if Applicable)

Office & Waiting Room Furniture7

Telephone System

Grand Opening Costs8

Initial Inventory9

Signs10

Shipping & Installation Costs - Signage

Supplies

Initial Training-Travel & Lodging Expenses11

Computer Hardware and Software and Shipping12

Point of Sale Maintenance Fee12

Professional Fees

Miscellaneous13

Additional Funds (3 months)14

Total Estimated Initial Investments

MULTI-UNIT AGREEMENT 1, 2

Development Fee1

How Much Can I Make?

$1,385,243*

$363,855*

Path To ownership

Step 1: Initial Conversation

Step 2: Franchise Qualification Questionnaire

Step 3: We’ll send our Franchise Disclosure Document (FDD)

Step 4: FDD review

Step 5: Validation

Step 6: Discovery Day

Step 7: FARE Approval

Step 8: Franchise Agreement Awarded

Step 9: Franchise Agreement Signed

Step 10: Onboarding Call!

Qualifications for
Ownership

Type of Expenditure¹

Initial Franchise Fee²

Lease and Real Estate³

Leasehold Improvements³

Utility Deposits, Licenses & Permits⁴

Insurance⁵

Equipment, Furniture, Tools and Installation⁶

Office & Waiting Room Furniture⁷

Grand Opening Costs⁸

Initial Inventory⁹

Signs¹⁰

Initial Training-Travel & Lodging Expenses¹¹

Computer Hardware and Software and Shipping¹²

Point of Sale Maintenance Fee¹²

Miscellaneous¹³

Additional Funds (3 months)¹⁴

MULTI-UNIT AGREEMENT ^{1, 2}

Development Fee¹

$1,385,243^*

$363,855^*