Take 5 Oil Change wants to open 45 Michigan centers, eyes Metro Detroit market
Detroit's automakers may be betting on electric vehicles, but that is not putting the brakes on a new oil-change service from entering Michigan.
New Orleans-based Take 5 Oil Change is looking for two to three franchise partners to open up to 45 locations in the state that put America on wheels. Up to 28 centers in Metro Detroit could mean a $14 million investment in the area and create more than 300 jobs, said Ted Rippey, vice president of franchise development.
"We knew we had to be really tight to come to a market like Detroit," Rippey said. "We're focused just on oil. It allows our technicians to get you in and out. In 2018, the average time it took for full service was under nine minutes."
The stay-in-your-car oil change service is a subsidiary of Charlotte, North Carolina-based Driven Brands Inc., a company focusing on the automotive aftermarket. It has 2,500 franchise locations nationwide for quick lube, repairs, collision and parts distribution with $2.6 billion in annual sales. The company has been expanding its way north, recently opening locations in Illinois, Indiana and Wisconsin.
While the autonomous vehicle and rideshare market are expected to increase the number of miles people travel, electric vehicles do not require oil changes. Still, Rippey said the company is "bullish" on the future.
"It won't be 30 to 40 years down the horizon until electric cars take over full-gas cars," he said. "And even that, that doesn't mean it eliminates it. It takes that long until gas engines start to decline. It's a real concern, and it will happen, but we're incredibly bullish on how long until it takes to get there."
Rippey said the company sees opportunity with hybrid vehicles and is keeping an eye on supercharging stations and sensor-cleaning techniques as possible future ventures for when vehicles do run on electricity
The company is looking to open locations in highly trafficked corridors such as at Interstate 94 and 23 Mile Road in Chesterfield Township, near Lakeside Mall in Sterling Heights, and Interstate 75 and West Road in Woodhaven.
Established Take 5 locations with at least $1.2 million in annual sales employ up to 11 employees, Rippey said. Each center represents approximately a $750,000 investment to build from the ground up. The company is looking to partner with entrepreneurs who have the capital, real estate chops and operations savvy to run multiple locations. Rippey said there are some prospects and that the company hopes to close agreements in the coming months.
"This deal is so much about customers service and convenience, making sure our customers feel like they're not going to get outsold," he said. "Our owners need to be able to recruit and manage a team. Those are the things we're looking for."