How to Finance a Take 5 Oil Change Franchise: Pit Builds and SBA
By Marc Cornella
A Take 5 Oil Change franchise loan usually funds a compact, drive-through quick lube built around a service pit, where drivers stay in their cars while technicians work from above and below. Because the format depends on a purpose-built building, a well-located site and a steady flow of cars, the financing tends to look more like a small real estate and equipment project than a typical retail franchise loan.
This article explains how the Take 5 model works, what a buyer typically pays for, how the brand’s SBA Franchise Directory notes on leases and purchase options affect collateral, and how lenders size a loan for a new shop, an existing shop or a multi-unit development schedule.
US Professional Funding is not affiliated with, sponsored by or endorsed by Take 5 Oil Change; the name is used only to describe the business. Figures from the franchisor’s disclosure document and other company materials 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.
Take 5 Oil Change Franchise Loan at a Glance
- Concept: a stay-in-your-car oil change that the company says it introduced in 1984 and that it says completes oil changes in about 10 minutes on average.
- System size: the company’s annual report lists 530 franchised and 812 company-operated Take 5 locations as of December 27, 2025.
- Franchising history: the brand began franchising in 2017 and says it passed 500 franchise locations during 2025.
- Format: a compact store layout with a shallow pit design that the company says reduces upfront build-out costs and gives it real estate flexibility.
- Franchise fee, royalty and investment range: set out in Items 5, 6 and 7 of the current FDD; request the latest version, because these figures change from year to year.
- Development model: the brand has focused on awarding franchises to qualified multi-unit owners and groups.
- SBA Franchise Directory: listed as Take 5 Oil Change (code S3083), with two notes covering lease documents and the franchisor’s purchase option when real estate secures the loan.
- SBA 7(a) maximum: currently $5 million, though program rules can change.
What Is Take 5 Oil Change?
Take 5 Oil Change is a quick lube brand built around speed and convenience. The company says it changed the industry in 1984 by introducing the stay-in-your-car oil change. Instead of handing over keys and waiting in a lobby, customers drive into a bay and remain in the vehicle while one technician works from the pit below and another handles the hood, fluids and checks above. The brand says oil changes take about 10 minutes on average, and it adds services such as fluid top-offs, tire pressure checks and routine maintenance items.
A system with both corporate and franchised shops. For most of its history Take 5 grew through company-operated locations. The brand began franchising in 2017, focused on multi-unit operators who could develop a community or region, and its franchise footprint has grown quickly since. The company said it added more than 100 new franchise locations in 2024, passed 500 franchise locations in 2025, and its annual report lists 530 franchised and 812 company-operated locations as of December 27, 2025.
Why the format matters to a lender. A Take 5 shop is a special-purpose building. The pit, drive-through bays, bulk oil storage and waste oil system are designed for one use. That gives a lender solid, identifiable collateral when the borrower owns the property, but it also means the value of the building is closely tied to the success of the business on that site. Lenders generally like the brand’s recognition and the company’s description of a model that does not require specialized mechanical labor, but they still focus on the site, the construction budget and the ramp-up period.
Take 5 Oil Change Franchise Costs
Take 5 publishes its fee and investment figures in its FDD, and they change with each annual update. Build your budget from the current Item 5, Item 6 and Item 7 tables rather than any figure quoted secondhand.
Initial franchise fee
Item 5 of the FDD states the initial franchise fee and any development fee charged when you sign a development agreement for multiple shops. Under a multi-unit agreement, part of the fees may be due at signing and the rest as each shop opens, so read the payment schedule closely. Franchise fees are an intangible cost, and lenders usually expect them to come from the buyer’s own funds or to be blended into a larger project loan.
Real estate, site work and building
For a ground-up shop, land and construction are typically the largest costs. A Take 5 site needs good visibility, easy access in and out of the bays, room for stacking cars and zoning that allows automotive service. The building itself includes the excavated pit, concrete work, drive-through doors, mechanical and electrical systems, and storage for bulk oil and used oil. Some franchisees buy land and build, some lease a pad and build, and some lease a completed building from a developer. Each path changes what the loan finances and what collateral the lender gets.
Equipment and bay systems
Equipment includes bulk oil tanks and dispensing reels, oil drain and evacuation systems, filter crushers, fluid exchange machines, air compressors, lighting, point-of-sale and vehicle lookup technology, and signage. Much of this is installed in the building and becomes part of the real estate collateral; movable items can be financed separately.
Opening costs and working capital
Pre-opening costs include training, hiring and paying a crew before the doors open, initial inventory of oil, filters and fluids, grand opening marketing, insurance, deposits and permits. Item 7 also includes an additional funds line meant to cover operating shortfalls during the first months. A new quick lube needs time to build its customer base, so this reserve deserves real attention.
Total investment
The Item 7 table adds these categories into a low-to-high range and states the assumptions behind it, including whether real estate is included. Expect the range to look different depending on whether you buy land, lease a pad or lease a completed building. When you review Item 7, look for these line items:
- Initial franchise fee and any development fee
- Real estate, rent and security deposits, or land purchase
- Site work, construction and leasehold improvements
- Equipment, oil storage and dispensing systems
- Signage and exterior image elements
- Computer, point-of-sale and technology systems
- Opening inventory and supplies
- Training, travel and pre-opening payroll
- Grand opening marketing
- Additional funds for the initial operating period
Build your sources-and-uses table from the FDD, construction bids, land or lease terms and the site approval.
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 of the FDD lists the royalty as a percentage of gross sales. Because it comes off the top line, it reduces the cash available for debt service on every oil change.
Advertising and marketing. Expect a brand fund contribution and possibly a local or cooperative advertising requirement. These fees support car counts, but they still belong in your projections.
Technology and other fees. Point-of-sale, vehicle data and other system fees, training fees for additional managers, and transfer and renewal fees appear in Item 6. Read each one and note which are fixed and which scale with sales.
Reinvestment. Equipment wears out and the franchise agreement may require image updates, so a realistic plan sets money aside.
How lenders factor these fees in. Lenders build a cash flow model that subtracts royalty, advertising, rent or mortgage payments, labor, product costs and other expenses from projected sales, then compare what is left with the proposed loan payments. A Take 5 Oil Change franchise loan is sized so that a slower-than-expected ramp-up still leaves a cushion.
Franchisor Requirements for New Owners
Take 5 sets its own financial and experience thresholds for candidates and states them in its franchise materials and FDD. The brand has described its ideal franchisee as a well-capitalized, entrepreneurial operator, and it has historically focused on multi-unit owners and groups rather than single-shop buyers. When you speak with the franchise development team, ask for:
- Minimum net worth and liquid capital for the number of shops you plan to develop
- The minimum development commitment and the opening schedule it requires
- Experience expectations, such as multi-unit operations, automotive service or retail management
- Whether the brand will consider an existing site for conversion
- The site approval process and who leads site selection and construction
The approval process. Candidates typically submit an inquiry, review the FDD, go through interviews and a financial review, and sign a franchise or development agreement before site selection begins. Each site then goes through the brand’s approval. A lender will usually ask to see the signed agreement and the site approval before closing.
Ways to Own a Take 5 Oil Change
Developing new shops. Most franchisees enter by signing a development agreement and building new shops on approved sites. Lenders underwrite projections, construction budgets and the borrower’s strength. Learn more about financing an automotive service start-up.
Buying an existing franchised shop. Franchisees sometimes sell individual shops or groups of shops. A buyer gets operating history, trained staff and an established customer base, and the lender can underwrite actual results. The transfer must be approved by the franchisor, and the buyer usually signs the current form of franchise agreement. Our automotive business acquisition loans are built for these purchases.
Converting an existing quick lube. An owner of an oil change building may ask whether the site can be rebranded. Any conversion is reviewed case by case and must work with the drive-through pit format; financing then covers the property plus the cost of meeting brand standards.
Financing Options for a Take 5 Oil Change Franchise
SBA 7(a) loans
The SBA 7(a) loan program can finance land, construction, equipment, franchise fees and working capital in one package, which suits a single new shop or an acquisition. Take 5 Oil Change is listed on the SBA Franchise Directory, so a lender can consider an SBA request once the borrower and project qualify. The 7(a) maximum is currently $5 million per borrower, which may limit how many shops one borrowing group can fund through the program.
SBA 504 loans
When the borrower will own the land and building, an SBA 504 loan can be a strong fit. The 504 program is designed for owner-occupied real estate and long-lived equipment, which matches a purpose-built quick lube. Franchise fees, inventory and working capital usually need a separate source.
Conventional term loans
Experienced multi-unit operators often use conventional business loans, especially when they are developing several shops and want flexibility beyond SBA limits. Lenders usually look for more equity and stronger operating history, and they may structure a construction loan that converts to a term loan after opening.
Equipment financing
Bulk oil tanks and reels, drain and evacuation systems, fluid exchange machines, compressors, point-of-sale hardware and signage can be financed separately from the building. This keeps cash available for opening and lets the equipment term match its useful life. See our automotive equipment financing and leasing options.
Working capital and lines of credit
A new shop pays crew wages and carries oil and filter inventory before its customer base is built. A line of credit can bridge that ramp-up, cover a busy-season inventory build or fund an unexpected repair. Our automotive working capital and lines of credit are designed for this kind of timing gap.
Seller financing on resales
When buying an existing franchised shop, part of the price may be carried by the seller through a note. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and may be limited by the rules of the loan program being used.
Real estate strategies
Owning the property builds equity but requires more cash up front. Leasing a pad or a completed building lowers the initial investment but adds rent to the cash flow model. Some owners build, then sell the property to an investor and lease it back to free up capital for the next shop. Our article on franchise real estate financing compares these approaches.
SBA Loans for Take 5 Oil Change Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility. Lenders generally need a brand to be listed before they can make an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower or site; it simply confirms that the franchise relationship itself can work with SBA lending.
The Take 5 listing. Take 5 Oil Change appears on the directory under code S3083. The listing carries two notes, and both concern real estate.
What the notes say, in plain English.
- Lease documents when real estate secures the loan: when the real estate where the shop is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease, the Consent and Agreement of Lessor, or the Sublease may not be executed. These are documents a franchisor sometimes uses to control a site through the lease. If the franchisee owns the real estate and pledges it to the lender, those lease-control documents cannot be put in place, so the lender’s claim on the property is not weakened.
- Purchase option on owned real estate: the franchisor may not enforce a purchase option on the real estate if the property is owned by the franchisee or an affiliate and has been taken as collateral for the SBA loan. In other words, the franchisor’s right to buy the site cannot override the lender’s collateral position.
Why it matters. The notes signal that the franchisor’s standard documents give it certain rights over a shop’s real estate. Your attorney and lender should confirm the notes are applied correctly, especially when the property sits in a separate real estate company owned by the franchisee.
SBA application tips. Gather the signed franchise or development agreement, the FDD, the approved site package, construction bids or the purchase contract, your personal financial statement, tax returns, a resume showing management experience and a month-by-month projection for the first years. To estimate payments early, try our SBA loan calculator; results are estimates for planning only and are not an offer or approval.
How Lenders Evaluate a Take 5 Oil Change Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and owners with significant stakes are usually asked to guarantee the loan.
Net worth and liquidity. Beyond the equity injection, lenders want to see cash left over after closing. A multi-unit development schedule means the borrower must fund equity for each shop as it opens, so liquidity is tested more than once.
Industry and management experience. Multi-unit retail, restaurant or automotive service experience helps, as does a clear plan for who runs each shop day to day.
Business plan and projections. Projections should model car counts, average ticket, add-on service sales, labor and product costs, and a realistic ramp-up for a new shop. Lenders compare those assumptions with what the FDD discloses and with local competition and traffic patterns.
The FDD and franchise agreement. Lenders read the term, renewal and transfer provisions in Item 17, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. They also look at the development schedule, because missing deadlines can put territory rights at risk.
Site, lease or real estate. For owned property, expect an appraisal and environmental review. For a lease, the lender wants a term that covers the loan and the franchise term, with renewal options. Our article on environmental reviews for auto service properties explains what lenders look for when oil is stored and handled on site.
Historical financials on resales. For an existing shop, expect to provide several years of sales reports and profit and loss statements for comparison with tax returns.
The Pit, Equipment and Environmental Considerations
The stay-in-your-car model depends on the pit. Technicians work beneath the vehicle from a lower level, so construction involves excavation, reinforced concrete, drainage, ventilation and safety systems that a flat-floor garage does not need. The company describes its design as a shallow pit that keeps build-out costs down, but it is still a specialized structure that has to be engineered for each site.
Bulk fluids. Oil, transmission fluid, coolant and other products are usually stored in bulk tanks and pumped to the bays. Used oil and filters must be collected, stored and removed under environmental rules. Lenders will want to know how tanks are installed, whether they are above or below ground and what monitoring is in place.
Replacement planning. Pumps, reels, compressors and doors wear out with heavy daily use, so owners often keep an equipment reserve or a line of credit. A Take 5 Oil Change franchise loan request that shows this planning reads as more credible.
Multi-Unit Growth and Development Agreements
Take 5 has built its franchise system around operators who open several shops. A development agreement typically grants rights to a defined area in exchange for a commitment to open a set number of shops on a schedule. That structure has major financing implications.
Financing the first shop. The first Take 5 Oil Change franchise loan in a development program is often underwritten on projections and the borrower’s personal strength. Once it is open and performing, it becomes evidence for the next request.
Financing later shops. Lenders generally look at the combined cash flow of the open shops, the remaining liquidity of the borrower and the construction budget for the new site. Some operators use one lender for the whole program; others finance each shop separately. Our article on multi-unit franchise financing walks through the options.
Watching the SBA limit. Because the 7(a) maximum applies to the borrower and its affiliates, a fast-growing group can reach it, so many groups mix SBA, 504 and conventional loans as they scale.
Real-World Scenarios
A first-time multi-unit developer. A former retail district manager and a partner sign a development agreement for several shops. They finance the first shop’s land and building through an SBA 504 loan, cover the franchise fee and pre-opening costs with an SBA 7(a) loan, and finance bay equipment separately to protect their cash.
An operator buying a franchisee’s shops. An existing restaurant franchisee buys a group of open Take 5 shops from a franchisee who is exiting. The lender underwrites the shops’ historical results, the seller carries a small subordinate note, and the franchisor approves the transfer.
A group owning its real estate. A group that owns its sites in a separate real estate company pledges a property as collateral. The attorney confirms the SBA directory notes are respected, so no lease-control documents are executed and the franchisor’s purchase option cannot be enforced against the pledged property.
Common Mistakes to Avoid
- Using outdated fee or investment figures instead of the current FDD
- Signing a development schedule without a funding plan for every shop
- Underestimating the ramp-up period for a new shop
- Ignoring the SBA directory notes when real estate is pledged as collateral
- Skipping the environmental review on a site with bulk oil storage
- Signing a lease that is shorter than the loan or the franchise term
- Leaving no reserve for equipment repairs and replacement
For more pitfalls that apply across the automotive service industry, read the auto repair shop loan mistakes that cost owners the most.
Next Steps to Finance Your Take 5 Oil Change Franchise
Step 1: Confirm the franchisor’s requirements. Ask the franchise development team for the current net worth, liquidity and development commitment expectations, and compare them with your own balance sheet.
Step 2: Get and review the current FDD. Study Items 5, 6, 7, 10, 17, 19 and 21 with a franchise attorney and accountant.
Step 3: Choose your path. Decide whether you will build new shops, buy existing shops or propose a conversion, and whether you will own or lease the real estate.
Step 4: Build a detailed budget. Use the FDD’s Item 7 categories, real construction bids and site costs to prepare a sources-and-uses table for each shop.
Step 5: Talk with a financing specialist early. Discuss SBA 7(a), SBA 504 and conventional options before you sign a development schedule, so the timeline matches your funding.
Step 6: Apply and coordinate approvals. Submit your loan request with the signed agreement, site approval, projections and personal financial documents, and keep franchisor and lender timelines in step.
Step 7: Plan the opening. Line up working capital, hiring, training and opening marketing so the shop can build volume quickly.
Take 5 Oil Change Franchise Loan FAQs
How much does it cost to open a Take 5 Oil Change?
The total investment is stated in Item 7 of the current FDD and depends heavily on whether you buy land, lease a pad or lease a completed building. Request the current document from the franchisor and build your budget from its table and your actual site costs.
What is the Take 5 franchise fee?
The initial franchise fee and any development fees are listed in Item 5 of the FDD. Under a multi-unit development agreement, fees may be paid partly at signing and partly as each shop opens.
What royalty does Take 5 charge?
The royalty is a percentage of gross sales stated in Item 6 of the FDD, along with advertising, technology and other ongoing fees.
How much net worth and liquid capital do I need?
Take 5 sets its own thresholds, which vary with the size of the development commitment. Ask the franchisor for current figures, and expect lenders to want additional liquidity beyond your equity injection.
Is Take 5 Oil Change eligible for SBA loans?
Yes. Take 5 Oil Change is listed on the SBA Franchise Directory under code S3083, with notes about lease documents and purchase options when real estate secures the loan. Each borrower and project still needs lender approval.
Can I finance the equipment separately?
Yes. Bulk oil systems, fluid machines, compressors, point-of-sale hardware and signage can often be financed separately from the building, which can preserve cash for opening.
Can I buy an existing Take 5 shop?
Yes, when a franchisee sells and the franchisor approves the transfer. Lenders can underwrite the shop’s actual history, which can make financing more straightforward than a new build.
Can a first-time business owner get a Take 5 Oil Change franchise loan?
It is possible, but Take 5 has focused on well-capitalized, multi-unit operators. Strong management experience in retail, restaurants or automotive service and solid liquidity make a request more likely to be approved.
Does Take 5 offer financing?
Check Item 10 of the current FDD, which discloses any financing the franchisor offers. Most franchisees arrange their own financing with outside lenders.
How long is a Take 5 franchise agreement?
The term, renewal rights and transfer conditions are set out in Item 17 of the FDD. Lenders compare the remaining term with the loan term, so confirm both before you borrow.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations. When buying an existing shop, rely on that shop’s actual financial statements.
Final Thoughts
Financing a Take 5 shop is about pairing a purpose-built site with a realistic ramp-up plan and enough capital to keep a development schedule on track. Buyers who read the current FDD carefully, understand how the SBA directory notes treat pledged real estate and line up financing for every shop on the schedule give themselves the strongest footing.
US Professional Funding helps franchise owners and buyers finance new development, acquisitions, equipment and working capital. Learn more about our franchise financing and automotive care financing solutions.
