Mr. Lube Canada, a B.C.-based quick lube and preventative automotive maintenance provider, has sold 23 corporately-owned stores across Canada as the company focuses on its successful franchise business.
The automotive services company said each outlet is being sold to an existing Mr. Lube franchisee, and the company will focus on expanding its national presence. Until recently, less than a quarter of the company's outlets were corporate owned.
"We have decided to concentrate all of our efforts on supporting our franchising model," Stuart Suls, president and COO, said in a release. "Due to our significant market successes and industry leading performance, we have created a solid investment vehicle by selling our established locations to a collection of trusted Mr. Lube franchisees. This gives us the opportunity to provide enhanced support for our proven franchise model."
The first transaction was expected to close by the end of November. After that, the only location that will continue under the ownership of Mr. Lube Canada is in Edmonton, where founder Clifford Giese and his father Arnold opened the company's first store in 1976. Mr. Lube Canada is now based in Delta, B.C., and operates 102 outlets across the country. A Mr. Lube franchise requires a total investment of around $400,000, with an initial franchise fee of $50,000.
from Western Investor, December 2010
