Jiffy Lube International, Inc. has the largest system of franchised and company-operated service centers in the rapidly expanding fast lube industry. A switch from the do-it-yourself to the installed motor oil market is accelerating, and we project that about half the growth in the installed market will go to the fast lube category, with the rest going to garages, car dealers and the few remaining gas stations. Over the next 10 years, the fast lube industry will need to expand to service more than 120 million vehicles a year, compared to about 80 million a year serviced in 1995. Jiffy Lube centers service millions of vehicles every year: over 29 million in 2001.

SITE CRITERIA:

Location
We believe the most desirable site is a corner lot. Sometimes cost considerations dictate an "inside" lot, in which case we prefer sites near shopping centers, major food stores, other successful service businesses or fast food restaurants with good visibility from both directions and accessible with a left turn (that is, a left turn into the site shouldn't be obstructed by a median or other traffic barrier).

Property Size
We think that a lot about 125 feet wide and 160 feet deep is optimal for most Jiffy Lube service centers. We'll consider smaller sites with adjoining common space. Our standard building is about 60 feet long and 40 feet wide.

Zoning
Sites must be zoned for uses that include quick lube operations. Otherwise, a variance may be necessary.

Traffic & Area
20,000 or more cars should pass the site each day. We look for sites on undivided streets with two-way traffic and with traffic speeds of 35 mph or less. There should be a population of at least 50,000 within a three-mile radius of the site, and within that radius there should be at least 42,000 automobiles and median household annual incomes of $30,000 to $40,000.