How to Finance a Strickland Brothers Franchise: Drive-Thru Bays
By Anthony Cornella
A Strickland Brothers franchise loan usually funds a purpose-built drive-thru oil change shop, which makes it closer to a small real estate and equipment project than a typical storefront franchise. Strickland Brothers 10 Minute Oil Change markets itself as one of the fastest-growing drive-thru oil change companies in the country, and buyers need to plan for land or a ground lease, construction, lift and fluid-handling equipment, and a staffing ramp-up.
This article covers what the company publishes about its footprint and services, how the drive-thru oil change model affects borrowing, why SBA lending is not the main route for this brand today, and how lenders evaluate new shops, acquisitions and multi-unit growth.
US Professional Funding is not affiliated with, sponsored by or endorsed by Strickland Brothers; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Strickland Brothers Franchise Loan at a Glance
- Concept: drive-thru oil change shops built on speed, service and trust, according to the company.
- System size: the company reports more than 285 locations in 27 states.
- Track record: the company cites more than 10 years of service.
- Services: oil changes, tire rotations, inspection and emissions services, and fleet solutions for business customers.
- Franchise fee, royalty and total investment: not published on the company’s franchise page; see Items 5, 6 and 7 of the current FDD.
- Net worth and liquidity: the franchise application asks candidates to state their net worth; specific thresholds are not published.
- SBA Franchise Directory: not listed, so conventional financing is the primary route.
What Is Strickland Brothers?
Strickland Brothers 10 Minute Oil Change operates drive-thru oil change shops built around quick service. The company describes its standard in three parts: a commitment to auto care, a customer-first mindset and a drive for continued growth. It recruits franchise partners through its franchise page, highlighting a proven business model, hands-on support and long-term growth potential.
What the shops do. The company’s service menu centers on oil changes and adds tire rotations and inspection and emissions services where offered. A fleet solutions program serves business customers with multiple vehicles, which can add steady weekday volume.
Why lenders view Strickland Brothers the way they do. Quick-lube shops are small-footprint, high-throughput businesses with recurring customer demand, since vehicles need regular oil changes. But a new shop also involves site acquisition, construction, environmental compliance and specialized equipment. Lenders focus on the site, the total project cost, the borrower’s liquidity and the owner’s ability to staff and manage the shop.
Strickland Brothers Franchise Costs
Strickland Brothers does not publish its franchise fee, royalty or estimated initial investment on its franchise page. The figures that matter for financing are in the FDD, which franchisors must provide before a sale. Here is how the major cost categories typically work for a drive-thru oil change shop and what to look for in each.
Initial franchise fee. Item 5 of the FDD lists the fee, when it is due, whether any portion is refundable and any multi-unit or development fees.
Real estate and construction. Drive-thru oil change shops are usually freestanding buildings with service bays and a lower-level pit or lift area. Depending on the deal, the franchisee may buy land and build, sign a ground lease and build, or lease a completed building. Site work, utilities, permits and construction are often the largest part of the budget when the owner develops the property.
Equipment. Expect bulk oil and fluid storage and dispensing systems, waste oil tanks, pit or lift equipment, air compressors, diagnostic and emissions testing equipment where required, tools, computers and point-of-sale systems.
Signage, opening inventory and working capital. Exterior signage, initial oil, filters and fluids, grand opening marketing, hiring and training, insurance and additional funds for the first months should all appear in Item 7.
Total investment. Use the FDD’s Item 7 table, not a third-party estimate, when building your loan request. Typical line items include:
- Initial franchise fee
- Land purchase or lease deposits
- Site work and building construction or leasehold improvements
- Lifts, fluid systems and shop equipment
- Signage
- Computer systems and software
- Opening inventory
- Training, insurance, licenses and permits
- Grand opening marketing
- Additional funds for the initial operating period
Item 7 may show different ranges depending on whether the franchisee buys the land, builds on leased land or leases an existing building. Make sure your lender sees the scenario that matches your site.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing contributions. Item 6 of the FDD lists the royalty, any brand or advertising fund contribution and local marketing requirements. Read how each is calculated and whether minimums apply.
Technology and other fees. Point-of-sale, customer management and fleet billing systems may carry recurring fees. Transfer, renewal and training fees also appear in Item 6.
Remodel and reimaging obligations. The franchise agreement may require periodic updates to signage, equipment or building finishes. Build those obligations into long-term plans.
How lenders factor fees in. Lenders deduct royalty, marketing contributions, rent or ground lease payments, labor and product costs before calculating debt service coverage. For a shop that owns its real estate, the mortgage payment replaces rent, which changes the cash flow profile.
Franchisor Requirements for New Owners
Strickland Brothers does not publish specific net worth or liquid capital thresholds on its franchise page. The franchise application asks candidates to state their net worth, and the page’s FAQ topics include whether automotive experience is required, owner requirements, traits of successful owners and available territories. Ask the franchise development team for the current answers early, because they shape how much of your own cash a lender will expect.
The approval process. Candidates submit an application with their contact details, net worth range and desired location, then move through the franchisor’s review. Site approval and construction timelines will shape when financing needs to close.
What this means for financing. Because the investment can include real estate and construction, lenders often look for significant personal liquidity and net worth. A Strickland Brothers franchise loan sits on top of a meaningful equity contribution rather than replacing it.
Ways to Own a Strickland Brothers
A new shop. Developing a new location means finding and approving a site, then financing land or a ground lease, construction, equipment and pre-opening costs. Lenders underwrite on projections, the site and the owner’s capital. Read about our automotive service start-up financing.
Buying an existing shop. Existing franchised shops may change hands with franchisor approval. A resale offers car counts, sales history and trained staff, which gives lenders real numbers. Our page on automotive business acquisition loans explains how we approach these purchases.
Multi-unit development. Many quick-lube franchisees grow by adding shops in the same market. A development commitment requires a capital plan for each future opening.
Conversion of an existing building. If the franchisor allows a former quick-lube or automotive building to be converted, the project may cost less than ground-up construction but will need inspections, environmental review and possibly significant equipment upgrades.
Financing Options for a Strickland Brothers Franchise
Conventional term loans. Because Strickland Brothers is not on the SBA Franchise Directory, a conventional business loan is usually the primary tool. Lenders size the loan to the project cost, the borrower’s equity and projected or historical cash flow, and typically require personal guarantees. Terms vary and every request is subject to underwriting.
Real estate financing. When the franchisee buys the land and building, a commercial real estate loan can finance the property separately from the business. Our article on franchise real estate financing explains how owner-occupied property loans work for franchise sites.
SBA 7(a) and 504 loans. The SBA 7(a) program and the SBA 504 program are common franchise tools, but SBA lenders generally require a brand to appear on the SBA Franchise Directory. See the SBA section below.
Equipment financing. Lifts, fluid dispensing and storage systems, waste oil tanks, compressors, testing equipment and point-of-sale systems can be financed separately, preserving cash for construction and working capital. See our automotive equipment financing and leasing options.
Working capital and lines of credit. A new shop pays technicians and buys oil and filters before car counts build. Fleet accounts may pay on invoice terms, creating timing gaps. A line of credit can help. Learn about automotive working capital and lines of credit.
Seller financing on resales. In the sale of an existing shop, the seller may carry part of the price. Any seller note would need to be acceptable to the senior lender and is typically subordinate to it.
SBA Loans for Strickland Brothers Franchisees
SBA lending for franchises relies on the SBA Franchise Directory, which lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a listing before making an SBA-guaranteed loan to a franchisee of that brand. A listing never approves a borrower; it only clears the franchise relationship for review.
Strickland Brothers is not on the SBA Franchise Directory. In plain English, SBA 7(a) and 504 loans are generally not a practical route for a Strickland Brothers franchise today. Buyers should plan around conventional business loans, commercial real estate loans, equipment financing and working capital lines. The absence of a listing is not a judgment about the brand’s quality.
Confirm status when you apply. Directory status can change. If the brand were added, the SBA 7(a) program maximum is currently $5 million, though program rules can change. Until then, prepare a conventional loan package from the start.
How Lenders Evaluate a Strickland Brothers Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees from significant owners.
Net worth and liquidity. Conventional lenders commonly expect a larger equity contribution than SBA programs, plus reserves after closing. Real estate projects add to the capital required.
Industry and management experience. Automotive, retail or multi-unit management experience strengthens a request. Lenders want to know who will run the shop daily and how technicians will be recruited and trained.
Business plan and projections. Projections should start from realistic daily car counts, average ticket, labor and product costs, royalty and marketing fees, and occupancy costs. Include a ramp-up period and a conservative case.
The FDD and franchise agreement. Lenders review the term, renewal rights, territory protection, transfer conditions, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. Our guide to how lenders read an FDD explains what they look for.
Site, real estate and environmental review. Lenders evaluate traffic counts, visibility, access, zoning and the ground lease or purchase terms. Because shops store and handle motor oil and other fluids, environmental review is often part of underwriting. Our article on environmental reviews for automotive properties explains what to expect.
Historical financials for resales. For an existing shop, expect to provide several years of profit and loss statements, car count reports and tax returns.
Equipment and the Drive-Thru Format
A drive-thru oil change shop is built for speed. Customers pull into a bay, technicians work from above and below the vehicle, and fluids are dispensed from bulk storage. That format puts a premium on reliable equipment: lifts or pits, oil and coolant dispensing systems, waste fluid tanks, filters and tools, and the computer systems that track vehicles and service history.
Financing implications. Equipment is a meaningful share of the project and often serves as collateral. Bulk storage and waste systems must meet environmental rules, and replacing them later is costly, so buyers of existing shops should inspect them carefully. Equipment loans or leases can spread these costs over the useful life of the assets.
Multi-Unit Growth and Development Agreements
Quick-lube economics often improve with density, since a group of shops can share management, marketing and inventory purchasing. Owners usually finance each new shop separately or use a development line once they have operating history. Lenders will underwrite the combined cash flow of existing shops alongside projections for new ones and want consolidated financial statements as the group grows. Each new Strickland Brothers franchise loan for an additional shop will depend on the performance of the shops already open. Read our article on multi-unit franchise financing.
Real-World Scenarios
A first-time owner building on a ground lease. A buyer with retail management experience secures an approved pad site on a ground lease. The buyer finances construction and equipment with a conventional loan, uses equipment financing for the lifts and fluid systems, and keeps a working capital reserve for the ramp-up.
An investor buying the land and building. A buyer with strong liquidity purchases a site and builds a shop, financing the real estate with a commercial mortgage and the equipment and opening costs separately.
A buyer acquiring an existing shop. A buyer purchases an operating shop from a franchisee. The lender reviews car counts and financials, orders an environmental review, and finances the purchase with a conventional term loan and a subordinated seller note.
An operator adding a third shop. An owner with two shops finances a third using combined cash flow, with equipment financing for the new bays.
Common Mistakes to Avoid
- Assuming SBA financing is available for a brand not on the SBA Franchise Directory
- Budgeting from estimates instead of the FDD’s Item 7 table
- Underestimating site work, construction and permitting costs
- Skipping environmental review on an existing shop
- Leaving too little working capital for the car count ramp-up
- Ignoring ground lease terms that are shorter than the loan
For more pitfalls, read the loan mistakes auto service owners should avoid.
Next Steps to Finance Your Strickland Brothers Franchise
Step 1: Request the FDD. Get the current FDD and review Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm requirements. Ask the franchisor about net worth, liquidity, experience and development expectations.
Step 3: Choose your real estate path. Decide whether you will buy land, sign a ground lease or lease a building, and get cost estimates.
Step 4: Talk with a financing specialist. Discuss conventional, real estate and equipment financing. Our conventional loan calculator can help with planning-level payment estimates, which are not an offer or approval.
Step 5: Build your projections. Model car counts, average ticket, labor, product costs, fees and occupancy.
Step 6: Apply and coordinate approvals. Submit your financial statements, tax returns, plan and franchise documents, and align closing with site approval and construction.
Strickland Brothers Franchise Loan FAQs
How much does a Strickland Brothers franchise cost?
The company does not publish the total investment on its franchise page. Item 7 of the current FDD lists the estimated initial investment, which varies with the real estate path.
What is the Strickland Brothers franchise fee?
The fee is disclosed in Item 5 of the current FDD rather than on the company’s franchise page.
What royalty does Strickland Brothers charge?
Royalty and marketing contributions are listed in Item 6 of the current FDD.
How much net worth do I need?
The company does not publish a specific threshold; its application asks candidates to state their net worth. Ask the franchisor for current requirements.
Can I get an SBA loan for a Strickland Brothers?
Strickland Brothers is not listed on the SBA Franchise Directory, so SBA financing is generally not the practical route. Most buyers use conventional financing. Confirm current status with your lender.
Do I need automotive experience?
The franchise page lists this as an FAQ topic; ask the franchisor directly. Lenders view automotive or multi-unit management experience favorably.
Can I finance the equipment separately?
Yes. Lifts, fluid systems, compressors and point-of-sale systems can often be financed with equipment loans or leases.
Can I buy an existing Strickland Brothers shop?
Existing franchised shops may be sold with franchisor approval. A resale gives lenders historical car counts and financials.
Does Strickland Brothers offer financing?
Review Item 10 of the current FDD for any franchisor financing. Most buyers use outside lenders.
Can a first-time owner get a Strickland Brothers franchise loan?
Yes, if approved by the franchisor and a lender. Strong liquidity, management experience and a realistic plan help.
What documents do I need?
A personal financial statement, tax returns, a resume, a business plan with projections, the FDD and franchise agreement, and site documents such as a purchase contract or ground lease.
Final Thoughts
Financing a Strickland Brothers shop means pairing a franchise with real estate, construction and specialized equipment. Buyers who get the FDD early, choose a real estate path deliberately and prepare a conventional loan package from the start give themselves the best chance of a smooth closing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and automotive care financing solutions.
