How to Finance a Victory Lane Franchise: Michigan Quick Lubes
By Chris Cornella
A Victory Lane franchise loan funds a drive-through quick lube center where customers stay in their cars for a full-service oil change. Victory Lane Quick Oil Change does not post its fees or investment range online; it shares them in a franchise packet and its Franchise Disclosure Document (FDD). This article explains how to finance the concept anyway: what drives the cost, how the brand’s SBA Franchise Directory note affects real estate deals, and what lenders want to see.
US Professional Funding is not affiliated with, sponsored by or endorsed by Victory Lane Quick Oil Change; the name is used only to describe the business. Figures in the franchisor’s materials and disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD with a franchise attorney and accountant.
Victory Lane Franchise Loan at a Glance
- Concept: full-service quick oil change centers; the company says most visits take about 15 minutes with no appointment needed.
- History: in business since 1980 and franchising since 1986.
- Footprint: locations across nine states, according to the franchisor.
- Services: oil changes, fuel system treatment, battery testing and replacement, wiper blades and fleet service.
- Training: Victory Lane University, covering operations, customer service and business management.
- Fees and investment: provided in the franchise packet and FDD (Items 5, 6 and 7), not published on the franchisor’s website.
- SBA Franchise Directory: listed (identifier S1866) with a note on lease documents when real estate secures the loan.
What Is Victory Lane Quick Oil Change?
The company traces its roots to 1980, when Derrick and Jane Oxender opened Pit Stop Quick Lube in Ann Arbor, Michigan. Franchising began in 1986, when the business became Victory Lane Quick Oil Change. In 2014, Justin and Lauren Cialella, who had operated 10 franchise locations in Southeast Michigan, acquired the company, and they now lead it as president and CEO and chief operating officer.
Victory Lane says it has expanded across nine states. Each visit includes oil matched to the vehicle, a new filter, chassis lubrication and a complimentary multi-point check, and the tagline “Get In. Get Out. Get Going.” sums up the convenience model.
Why lenders view it the way they do. Oil changes are a recurring, needs-based service that customers return for several times a year, which gives lenders a predictable revenue pattern. On the other hand, quick lube centers are real-estate-heavy and equipment-intensive, so lenders scrutinize the site, the building and the operator’s ability to manage technicians and inventory.
Victory Lane Franchise Costs
Victory Lane shares its investment overview in a franchise packet you request from its website. Until you have that packet and the FDD, use the categories below to plan, and plug in the actual figures from Items 5 and 7.
Initial franchise fee. Disclosed in Item 5 of the FDD. Ask whether multi-unit or conversion pricing applies.
Real estate and building. This is usually the biggest variable. Quick lube centers are typically freestanding drive-through buildings with service bays, often with a lower-level pit so technicians can work beneath vehicles. You may buy land and build, lease a pad and build, or convert an existing automotive building.
Equipment. Bulk oil storage tanks, pumps and reels, used-oil and coolant recovery systems, filter crushers, battery testers, fluid exchange machines, air compressors, point-of-sale and vehicle history software, and signage.
Opening inventory. Motor oils in several grades, filters, wiper blades, batteries, fluids and additives.
Working capital. Payroll for technicians in training, utilities, insurance and marketing during the first months before car counts build.
Total investment. Use the Item 7 table to see the full range and each line item. Expect it to break out roughly into:
- Initial franchise fee
- Land and building or lease costs
- Site work, construction or conversion
- Lube equipment, tanks and recovery systems
- Signage and technology
- Opening inventory
- Training expenses
- Insurance, permits and professional fees
- Additional funds for the initial period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, advertising or marketing contribution, technology fees, transfer and renewal fees, and any other recurring payments. Get those exact rates before you build a budget.
How lenders factor them in. Lenders subtract royalties and marketing fees from projected revenue along with rent or mortgage payments, labor and product costs, then measure what remains against loan payments. In a quick lube, product cost and labor are the two biggest expenses after occupancy, so supplier pricing and technician staffing plans matter to your projections.
Equipment upkeep and refreshes. Tanks, lifts or pit equipment and software need maintenance and eventual replacement. Check the franchise agreement for any required upgrades during the term.
Franchisor Requirements for New Owners
Victory Lane does not publish minimum net worth or liquid capital figures online; ask for them with the franchise packet and confirm them in the FDD. What the franchisor does describe:
- Training: in-depth training at Victory Lane University before opening day in operations, customer service and business management, plus time in a working store.
- Ongoing support: a dedicated support team, operational guidance, marketing support, and continuing education and leadership development.
- Growth approach: the franchisor encourages owners to establish and refine one location before taking on the next.
The approval process. Prospects request a franchise packet, which includes the investment overview, territory availability across the brand’s nine states and new markets, and training details. The company says a franchise team member reaches out within two business days. From there, candidates review the FDD, select a site and sign the franchise agreement after approval.
Ways to Own a Victory Lane
A new center. Building a new location involves land or a ground lease, construction and a full equipment package. Lenders underwrite projections, the site and your experience. Read about automotive care start-up financing.
Buying an existing franchised center. Buying an open center gives lenders real car counts and financial statements. The current owners came from the franchisee ranks, a sign that existing operators do build multi-unit portfolios. See automotive care acquisition financing and our guide to buying a franchise resale.
Converting an existing building. If a former quick lube or automotive building is available, ask the franchisor whether a conversion fits its standards. A conversion can lower construction costs but may require equipment replacement.
Financing Options for a Victory Lane Franchise
SBA 7(a) loans. An SBA 7(a) loan can cover land and building, construction, equipment, the franchise fee and working capital in one loan, which makes it a natural fit for a Victory Lane franchise loan.
SBA 504 loans. When you buy or build the property, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment. Quick lube buildings are special-purpose properties, so lenders look closely at the site and appraisal.
Conventional term loans. Experienced operators with strong balance sheets may use a conventional business loan, especially for additional centers.
Equipment financing. Tanks, reels, recovery systems and diagnostic tools can be financed separately. See automotive equipment financing and leasing.
Working capital and lines of credit. Inventory purchases, technician payroll and weather-driven slow periods can strain cash. Fleet accounts may also pay on terms. Explore automotive working capital and lines of credit.
Seller financing on resales. A seller may agree to carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit them.
SBA Loans for Victory Lane Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory, which shows the franchise agreement has been reviewed for eligibility. A listing does not approve any borrower.
Victory Lane’s listing. Victory Lane Quick Oil Change is listed under identifier S1866 with this note: when the real estate where the franchise business is located will secure the SBA loan, the Lease Addendum and Collateral Assignment of Lease may not be executed. In plain English, those two documents are designed for leased sites; if you own the property and pledge it as collateral, they should not be signed. Expect your lender to sort out which documents apply based on whether you lease or own.
The SBA 7(a) program maximum is currently $5 million; program rules can change. For more on how SBA lending works in this industry, read about SBA loans for auto service businesses, and use our SBA loan calculator for planning estimates only.
How Lenders Evaluate a Victory Lane Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement.
Net worth and liquidity. Real estate deals require a meaningful cash injection plus reserves after closing.
Industry and management experience. Automotive, retail or multi-site management experience helps. Lenders also value Victory Lane University training.
Business plan and projections. Base projections on traffic counts, nearby competition, average car counts ramping over time, product and labor costs, fleet accounts and all franchise fees.
The FDD and franchise agreement. Lenders review Items 5, 6, 7 and 17, plus Items 3 and 4 for background.
Site and real estate. Appraisals, environmental reports for oil storage, zoning and access matter. Our guide to franchise real estate financing explains the process.
For resales, the historical financials. Expect to provide car counts, profit and loss statements and tax returns.
Equipment and Environmental Considerations
Quick lube centers store and dispense large volumes of new and used oil. Lenders and landlords may ask for environmental reviews, spill prevention plans and proper used-oil and filter disposal. Budget for these and keep records clean, since they affect both financing and resale value.
Multi-Unit Growth
Victory Lane encourages owners to refine one location before adding the next. Lenders follow the same logic, financing a second center once the first shows stable cash flow. As you grow, keep separate financials for each center and consider real estate financing structures that let you build equity across sites.
Real-World Scenarios
A first-time owner building a new center. An owner with retail management experience uses an SBA 7(a) loan for land, construction, equipment and working capital, completes Victory Lane University and opens with a reserve for the ramp-up.
An operator buying an existing center. A buyer acquires a franchised location. The lender relies on its car counts and financial statements, and the seller carries a small subordinate note.
A franchisee buying the building. An owner who leased a center buys the property with an SBA 504 loan; per the directory note, the Lease Addendum and Collateral Assignment of Lease no longer apply.
Common Mistakes to Avoid
- Building a budget before receiving the franchise packet and FDD
- Underestimating site work and environmental costs
- Ignoring the SBA directory note on lease documents
- Projecting full car counts from day one
- Leaving too little working capital for inventory and payroll
For more, read auto service loan mistakes to avoid.
Next Steps to Finance Your Victory Lane Franchise
Step 1: Request the franchise packet. Get the investment overview, territory availability and training details.
Step 2: Review the FDD. Study Items 5, 6, 7, 17 and 19 with an attorney and accountant.
Step 3: Talk with a financing specialist. Learn how a Victory Lane franchise loan would be sized and whether to lease or own.
Step 4: Choose a site. Evaluate traffic, access, zoning and environmental issues.
Step 5: Build your plan. Prepare projections with realistic car count ramp-up and all fees.
Step 6: Apply and close. Submit your loan package and coordinate closing with construction or transfer.
Victory Lane Franchise Loan FAQs
How much does a Victory Lane franchise cost?
The franchisor provides its investment overview in a franchise packet and Item 7 of the FDD. Costs depend heavily on whether you buy land and build, lease, or convert a building.
What is the Victory Lane franchise fee?
It is disclosed in Item 5 of the FDD and the franchise packet.
What royalty does Victory Lane charge?
Royalty and marketing fees are listed in Item 6 of the FDD.
How much liquid capital do I need?
Victory Lane does not publish its requirements online. Ask for them with the packet; lenders will also expect a cash injection and reserves.
Can I get an SBA loan for a Victory Lane franchise?
Yes. The brand is listed on the SBA Franchise Directory, so SBA lenders can consider it, subject to the directory note and your qualifications.
Can I finance equipment separately?
Yes. Tanks, reels, recovery systems and diagnostic tools can be financed through equipment loans or leases.
Can I buy an existing Victory Lane?
Yes, if a franchised center is for sale and the franchisor approves the transfer.
Can a first-time owner qualify?
Possibly. Victory Lane University training plus management experience and enough capital can support a first-time owner’s request.
Does Victory Lane offer financing?
Check Item 10 of the FDD for any franchisor financing.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Victory Lane franchise loan is largely a real estate and equipment decision built on a long-running quick lube brand. Get the franchise packet and FDD, decide whether to own or lease, and build projections around a realistic car count ramp-up.
US Professional Funding helps franchise owners finance new locations, acquisitions, real estate, equipment and working capital. Learn more about our franchise financing and automotive care financing programs.
