Qualifications for
Ownership

Financial

Cash available to invest: $250,000
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, first responder or their spouses, the Initial Franchise Fee is $29,900. If you are an existing franchisee, you qualify for the Veteran Program, and you sign a then-current Franchise Agreement on or before April 30, 2023, the Initial Franchise Fee will be $20,000 for your second SpeeDee Franchise and each additional SpeeDee Franchise thereafter.

* Multi-Unit Franchisees must open a minimum of three SpeeDee centers. You will sign a multi-Unit Agreement and the Franchise Agreement for your initial SpeeDee Franchise at the same time. You will pay the applicable Initial Franchise Fee for the first SpeeDee Center noted above under the initial Franchise Agreement, and a multi-unit fee ("Multi-Unit Fee") equal to a reduced Initial Franchise Fee of $20,000 for the second SpeeDee Center, and a reduced Initial Franchise Fee of $15,000 for each additional SpeeDee Center you intend to open under the Multi-Unit Agreement. The minimum Multi-Unit Fee is $35,000.

** Royalty; Gross Revenues. The Royalty owed for sales of brake products and brake repair services only (as described in the Franchise Agreement) will be the sum of 5% of Gross Revenues from the previous week. The Royalty for all other revenue will be equal to 6% of Gross Revenues from the previous week. The Minimum Royalty Fee to be paid to us is $225 per week. Gross Revenues shall mean and 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, and whether or not sold through the Center, 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 and are purchasing a franchise for a new location, you are entitled to participate in our Incentive Royalty Rebate Program during the first two years of operations after you open your Center. Acquisition of an existing Center through a transfer does not qualify for the Incentive Royalty Rebate Program. 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% of all Gross Revenues from the previous week 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 $29,900 for a single Center. Veterans who meet additional qualifications may also be eligible for a royalty rebate.

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. If you meet additional qualifications, you may also be eligible for a royalty rebate.

Startup Costs

Estimated expenditure for a single Brownfield location¹

NOTE 1: General. The high and low ranges in the chart are based on a single Franchise Agreement and the retrofit of an eight-bay Center using current brand standards. The low ranges in the chart assumes you are purchasing a Conversion franchise which is already in the quick lube business, and may not need to incur all of these expenses. We do not finance any portion of your initial investment.

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. 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. If you are a Veteran, the Initial Franchise Fee is $29,900. We offer a reduced Initial Franchise Fee of $20,000 for existing franchisees (unless you are also an existing franchisee that is converting an open and operating competitive business to a SpeeDee Center, then the Initial Franchise Fee is further reduced to $10,000) who are eligible to participate in the Incentive Program. Item 5 has more information on the Initial Franchise Fee.

Lease and Real Estate³

$14,000 ^(LOW) | $32,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As specified in Lease or Sublease

To Whom Payment is Made:

Lessor

Lease, Real Estate and Leasehold Improvements. Typically, you will enter into a triple net lease with a third party through which you would pay all the expenses of the property, including real estate taxes, building insurance and maintenance for an existing automotive building. In this type of a lease, the landlord may pay 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 $3,500 to $8,000 for an eight-bay unit and the security deposit is usually equal to one month's rent. The chart shows three months' rent and a security deposit equal to one month's rent. If you propose a site that was an existing automotive building to be reviewed and approved by us that is for sale and you choose to retrofit that site, the estimated cost to purchase a site for a SpeeDee Center ranges from approximately $440,000 to $1,400,000 for land and building only.

You need a site of approximately 43,000 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 71 feet by 32 feet and contains approximately 2,272 square feet on the main level of the building (the basement is not included in the 2,272 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 shallow pits and/or auto-service pits rather than an in-ground 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 retro 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.

If you purchase an existing SpeeDee Center from an existing SpeeDee franchisee, you will be required to sign a Deferred Maintenance Agreement which requires the buyer or seller of the SpeeDee Center to repair conditions of the Center identified in our or SWRC's inspection of the Center within 90 days of the purchase (Exhibit D-3).

In the past SWRC has leased the premises of the SpeeDee Center from a third party and then subleased the premises to franchisees on terms agreed to between the franchisee and SWRC. SWRC no longer leases and then subleases new locations for SpeeDee Centers. However, if you acquire an existing SpeeDee Center through a transfer, you may be required to either assume the existing sublease or enter into a new sublease for the premises from SWRC. 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.

Leasehold Improvements³

$0 ^(LOW) | $250,000 ^(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, Agent 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) | $190,400 ^(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) | $10,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Incurred

To Whom Payment is Made:

FullSpeed Automotive, Grease Monkey International, or Third Parties

Grand Opening Costs. You should plan to spend $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) | $25,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

Before Opening

To Whom Payment is Made:

Designated Suppliers or Third Parties

Signs¹⁰

$13,200 ^(LOW) | $30,000 ^(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

$1,000 ^(LOW) | $2,000 ^(HIGH)

Method of Payment:

As Agreed

When Due:

As Incurred

To Whom Payment is Made:

Third Parties

Initial Training-Travel & Lodging Expenses¹¹

$1,000 ^(LOW) | $2,500 ^(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

$12,500 ^(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; POS Maintenance Fee. The estimated initial investment includes costs related to the purchase of computer hardware and software and the ongoing POS Maintenance Fee for the first three months of operations. 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. ("Sage Microsystems") is the only approved point of sale vendor. See Item 11 below for more information.

Point of Sale Maintenance Fee¹²

$2,316 ^(LOW) | $4,152 ^(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

$40,000 ^(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. Your costs depend on several factors, including how much you follow our methods and procedures, your management skill, experience and business acumen, local economic conditions, the local market for our products and services, the prevailing wage rate, competition and the sales level reached during the initial period. This is only an estimate; there is no guarantee that the amounts specified will be adequate or that additional investment will not be necessary during the first three months of operations or afterwards. There is no assurance that you will have reached "break-even" or any other financial level by the end of three months and you may need additional capital.

Total Estimated Initial Investments¹⁵

$209,326 ^(LOW) | $798,642 ^(HIGH)

Total Estimated Initial Investment. Because the ranges in the chart are only estimates and are subject to economic and inflationary conditions, it is possible both to reduce and exceed the estimated range of costs listed in each item of the chart. In certain major metropolitan areas, actual costs may substantially exceed the high range estimates in the chart. You should review these figures carefully with a business advisor or other professionals before making any decision to purchase a franchise.

MULTI-UNIT AGREEMENT ^{1, 2, 3}

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. Multi-Unit Franchisees do not receive an exclusive development or similar area in which to locate and develop their SpeeDee Centers. Each Franchised Location under a Multi-Unit Agreement may be located in a different city, county or state. You must obtain our prior written approval of the location for your Franchised Location based on our then-applicable criteria.

3. 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?

$1,822,261^*

Average net sales for Top Quartile of sales revenue averages

$455,224

EBITDAR for Top Quartile of sales revenue averages

*This number is a historic financial performance representation reflecting franchisee averages on an annual basis for the 2021 calendar year of the top 25% of all SpeeDee Centers in the U.S. that operated for at least one year as of December 31, 2021, operated the entire calendar year, and provided complete profit and loss statements to the franchisor (the “2021 Top 25% Stores”). The 2021 Top 25% Centers include 12 outlets, of which 4 (or 33%) exceed the average gross revenues of that group. Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much. [Based on avg unit volume of the top quartile of franchise-owned SpeeDee Centers for fiscal year 2021. This information appears in our 2022 FDD under Item 19].

Sales averages for franchisee-owned units

The data above includes a historic financial performance representation for the calendar year 2021 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, 2021, operated the entire calendar year 2021, and who provided complete Profit and Loss Statements to us ("Subset"). Only those Centers that fall within the Subset are included in these charts.

The charts include a historic financial performance representation from 46 franchisee-owned Centers. The total number of franchisee-owned Centers located in the United States as of December 31, 2021, was 72. The 26 Centers not included in our data set include Centers that commenced operations during calendar year 2021 or otherwise did not operate for the entire calendar year 2021, Centers that were involved in transfers during calendar year 2021 and thus the current owners did not operate for the entire calendar year 2021, and Centers for which complete Profit and Loss Statements were not provided to us. We had four franchisee-owned Centers that closed during the year 2021, 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

Estimated expenditure for a single Brownfield location1

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 Investments15

MULTI-UNIT AGREEMENT 1, 2, 3

Development Fee1

How Much Can I Make?

$1,822,261*

$455,224

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

Estimated expenditure for a single Brownfield location¹

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

Total Estimated Initial Investments¹⁵

MULTI-UNIT AGREEMENT ^{1, 2, 3}

Development Fee¹

$1,822,261^*