Valvoline Inc. Opens Its 1000th Franchise Location

Rhea-AI Summary

Valvoline Inc. (NYSE: VVV) celebrates the opening of its 1000th franchise-operated location under its Valvoline Instant Oil Change and Great Canadian Oil Change brands. The milestone location is operated by Quality Automotive Services, LLC (QAS), one of Valvoline's largest franchise partners. The new store, located in Raleigh, North Carolina, marks 166 Valvoline Instant Oil Change locations operated by QAS, spanning 13 states. Valvoline President and CEO Lori Flees emphasizes the importance of the franchise network in the company's accelerated growth.

Market Research Analyst

The opening of Valvoline Inc.'s 1000th franchise location is a significant achievement in terms of expansion and market penetration. This milestone reflects a robust franchise growth strategy, which is crucial in the automotive service industry where brand recognition and geographic reach can drive customer loyalty and revenue growth. The partnership with Quality Automotive Services, LLC (QAS) highlights the importance of strong franchise relationships in scaling operations. The choice of Raleigh, North Carolina, for the new service center indicates a strategic move to tap into a growing market, likely based on demographic trends and vehicle registration data.

From a market research perspective, this expansion could signal a bullish outlook for Valvoline's stock as it demonstrates the company's ability to scale and meet consumer demand effectively. Investors might view this as an indication of the company's operational strength and potential for future earnings growth, especially considering the long-term partnership with QAS and the continued focus on franchising as a growth vehicle.

Financial Analyst

The financial implications of opening the 1000th franchise location can be multifaceted. For Valvoline Inc., this expansion likely represents a calculated investment into their franchising business model, which typically offers a steady stream of franchise fees and royalties, contributing to the company's revenue. As a financial analyst, one would assess the historical performance of Valvoline's franchise operations to gauge the potential return on investment from new locations. Additionally, the impact on Valvoline's balance sheet and cash flow statements would be scrutinized, with particular attention to how the expansion is financed and the expected timeline for profitability of the new location.

Investors should also consider the operational efficiencies that can be gained from economies of scale with a larger franchise network, which could improve margins over time. The long-standing partnership with QAS suggests a stable and reliable source of income from the franchising operations, which can be attractive from a financial stability standpoint.

Economist

The expansion of Valvoline's franchise network to 1000 locations is not only a corporate milestone but also an economic indicator. It suggests a positive outlook on consumer spending within the automotive maintenance sector, which is often tied to broader economic health. As an economist, one would analyze this development in the context of current economic conditions, including employment rates, disposable income levels and consumer confidence indices, which can affect the frequency of vehicle maintenance services.

Moreover, the specific choice of location for the 1000th franchise reflects economic research into local market conditions, such as the growth rate of the region, the competitive landscape and the potential for job creation. This expansion could have a ripple effect on the local economy by providing employment opportunities and stimulating related businesses. In the long-term, sustained growth in service locations could be indicative of Valvoline's adaptability to economic cycles and resilience to potential downturns.

The 1000^th franchise location is operated by Quality Automotive Services, LLC

LEXINGTON, Ky., Feb. 8, 2024 /PRNewswire/ -- Valvoline Inc. (NYSE: VVV), the quick, easy, trusted leader in preventive automotive maintenance, announces the opening of its 1000^th franchise-operated location under its Valvoline Instant Oil Change and Great Canadian Oil Change brands. The new 1000^th franchise store is a Valvoline Instant Oil Change location operated by Quality Automotive Services, LLC (QAS), one of Valvoline's largest franchise partners.

"I am proud to celebrate this important milestone with our franchise partners and with the entire Valvoline team," said Valvoline President and CEO Lori Flees. "The strength of our franchise network has been and continues to be a key ingredient to our accelerated growth. We have the best franchise partners in our industry, including our more than 20 years of partnership with QAS."

The 1000^th location is a new, three-bay service center located in Raleigh, North Carolina, and marks 166 Valvoline Instant Oil Change locations operated by QAS, which has service centers spanning 13 states. Information about the new location's services, wait times, and hours of operation can be found at vioc.com.

"When we opened our first Valvoline Instant Oil Change location in 2001, we knew it was the beginning of a strong partnership with Valvoline," said QAS CEO Matt McKeown. "We're excited to be a part of this milestone with the company and look forward to many more years of bringing quick, easy, and trusted automotive preventive services to even more communities."

Valvoline Instant Oil Change recently ranked #1 in automotive preventive maintenance service providers on Entrepreneur's Franchise 500^® 2024 list. The addition of the 1000^th franchise location brings the total number of system-wide stores to nearly 1,900 retail locations. With 38 new stores added within the first quarter of Valvoline's 2024 fiscal year, the company is making progress towards its goal of opening more than 3,500 locations.

About Valvoline Inc.
Valvoline Inc. (NYSE: VVV), is the quick, easy, trusted leader in automotive preventive maintenance. Valvoline Inc. is creating shareholder value by driving the full potential in our core business, accelerating network growth and innovating to meet the needs of customers and the evolving car parc. With nearly 1,900 service centers throughout North America, Valvoline Inc. and our franchise partners keep customers moving with our 4.6 out of 5 star* rated service that includes 15-minute stay-in-your-car oil changes; battery, bulb and wiper replacements; tire rotations; and other manufacturer recommended maintenance services. In fiscal year 2023, Valvoline's network delivered approximately 27 million services to generate $1.4 billion in revenue from $2.8 billion in system-wide store sales, marking 17 years of consecutive system-wide same-store sales growth. At Valvoline Inc., it all starts with our people, including our more than 10,000 team members and strong, long-standing franchise partners. We are proud to be a 10-time winner of the BEST Award for training excellence and a top-rated franchisor in our category by Entrepreneur and Franchise Times. To learn more, or to find a service center near you, visit vioc.com.

*   Based on a survey of more than 900,000 Valvoline Instant Oil Change℠ customers annually
^™ Trademark, Valvoline Inc., or its subsidiaries, registered in various countries
^SM Service mark, Valvoline Inc., or its subsidiaries, registered in various countries

FOR FURTHER INFORMATION

Investor Relations 
Elizabeth B. Russell
+1 (859) 357-3155
IR@valvoline.com 

Media Relations 
Angela Davied
media@valvoline.com 

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SOURCE Valvoline Inc.

How many franchise-operated locations does Valvoline Inc. have?

Valvoline Inc. has announced the opening of its 1000th franchise-operated location.

Who is the franchise partner operating the 1000th location?

The 1000th franchise-operated location is operated by Quality Automotive Services, LLC (QAS).

Where is the 1000th franchise location located?

The 1000th franchise-operated location is a new, three-bay service center located in Raleigh, North Carolina.

How many Valvoline Instant Oil Change locations are operated by QAS?

QAS operates 166 Valvoline Instant Oil Change locations, spanning 13 states.