Precision Tune Auto Care

Franchise fee: $2,000 to $25,000 — one of the lowest franchise fee ranges in the automotive category, and dramatically lower than Take 5 ($25K–$35K) or Jiffy Lube.

Royalty: 7.5% base rate on Gross Sales, with several reduction tiers: 6.75% if you grow GS 10%+ over prior year; 6.5% at 20%+ growth; 6.0% at 30%+ growth (the Partners in Profit program). Volume thresholds also apply: GS exceeding $1.25M get a 50% reduction on the excess; above $1.55M, you pay 0% on the excess. Veterans get 3.75% for the first 52 weeks. Minimum: $300/week regardless of sales.

Total investment: $181,601 to $478,100. Automotive service centers require bay space, lifts, diagnostic equipment, and proper environmental compliance for oil disposal — the range reflects whether you're building new, converting an existing service bay, or acquiring an existing Precision Tune center.

Item 19 covers 198 centers in the 52 weeks ended December 29, 2024 — representing 94.7% of 209 active franchised centers. Average annual gross sales: $832,329. Median: $716,842. Only 36.9% of centers exceeded the average, suggesting the top performers carry the average higher than the typical center.

At the median ($716,842) and 7.5% royalty, annual royalties are $53,763 before the minimum threshold kicks in. The $300/week minimum ($15,600/year) only matters if your center falls below $208,000 in annual sales — not a realistic risk at this revenue level.

For context: a center achieving 30% year-over-year growth would pay only 6% royalty — on a $900K sales base, the difference between 7.5% and 6.0% is $13,500/year. The performance incentive structure is genuinely meaningful and rewards operators who execute growth.

Precision Tune's system contracted from 248 franchised units in 2022 to 209 in 2024 — a 15.7% reduction over two years. This is a meaningful decline that warrants investigation. In a fast-lube category where Jiffy Lube and Take 5 are both growing, Precision Tune's shrinkage suggests franchisee economics or market positioning may not be competitive enough to attract new operators.

The brand has been around since 1975 — genuine heritage in automotive services. But heritage and current competitiveness are different things. The fast-lube segment is consolidating rapidly, and brands without multi-unit regional operators or private equity backing behind them are finding franchisee development difficult.

The 7.5% base royalty is the highest in the automotive category on this site and meaningfully above competitors (Take 5 at 6%, Speedee at 6%). The performance reduction program requires year-over-year growth to trigger — meaning in a flat or declining year, you pay the full 7.5%. Budget conservatively using the full rate.

System shrinkage from 248 to 209 franchised units (2022–2024) requires a direct explanation from the franchisor. Ask specifically: how many units closed, how many were terminated vs. non-renewed vs. voluntary exits, and what the average duration of closed locations was. Franchise brands that lose 15% of their units in two years are either pruning underperformers (positive interpretation) or experiencing franchisee distress (concerning interpretation).

Automotive service is a repeat-transaction business — the economics work when you build a loyal customer base in a specific neighborhood. Location selection is therefore critical: a Precision Tune 2 miles from a high-volume Jiffy Lube in a market where habits are entrenched faces a structural challenge that the FDD doesn't quantify.