The vendor opportunity at Grease Monkey
Grease Monkey operates 337 automotive-service Centers, 187 of them franchised, with franchised outlets up 1.1% year over year. Item 19 of the FDD makes a financial performance representation: it reports average net sales for 130 franchisee-owned Centers by sales range and quartile, from $348,904 in the lowest range to $1,455,183 for the 49 Centers above $1,000,000. The system's 71 mapped operators include 17 multi-unit operators, concentrated in Colorado, Utah, Arizona, Florida and Georgia — secondary targets who each control several Centers. Grease Monkey is part of MidOcean Partners, alongside sibling brands Kwik Kar Franchising, DCMV Service, Wallaby Windows, SpeeDee, Kramerica Enterprises and Koala Insulation.
Who controls software purchasing
Software purchasing runs through Grease Monkey's headquarters. Items 8 and 11 require franchisees to use the Computer System — hardware and software, including the point-of-sale system — that Grease Monkey periodically designates, maintain a high-speed internet connection, and obtain computer hardware, software licenses, maintenance and support only from suppliers Grease Monkey specifies, which may be limited to Grease Monkey and its affiliates.
Tech named in the FDD, and what is actually required
The POS systems Grease Monkey currently approves are provided by Sage Microsystems and Integrated Services, Inc., built into the required Computer System above.
Procurement, renewals, and timing
Item 8 runs an approved-supplier list: franchisees must purchase products, equipment, supplies and services only from suppliers designated or approved by Grease Monkey in advance, and may propose an alternative supplier for approval. Grease Monkey may periodically negotiate purchase arrangements, including price terms, with preferred and approved suppliers on franchisees' behalf. The royalty runs 6.0% of sales on a 15-year initial term, and Item 17 of the FDD sets the renewal, transfer and termination terms for a Grease Monkey franchise.
How to read the Grease Monkey FDD
The embedded viewer below carries this Grease Monkey Franchise Disclosure Document, filed for 2023, including the Item 11 technology and Item 8 supplier-restriction language summarized above.
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