EXPRESS Oil Change Is Not Feeling The Recession

Here is a franchise update from.........

From The Daily Franchise News-

The Birmingham, Ala.-based chain of quick lube and repair shops, has seen a lengthy string of same-store sales increases that haven’t stopped with the economy, said Ricky Brooks, the company’s CEO. This year, same-store sales have been getting progressively larger—in July, sales were up 10 percent, Brooks said. The strategy behind Brooks’ franchise is to combine a quick-service oil change shop with one that will do a wide range of auto repairs—effectively using oil changes to capture more lucrative service customers. “Whoever controls the oil change controls the consumer,” he said.

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[second look]

How are the more recent franchisees doing?

Quoting VP Feazell "We opened 11 stores in 2008 and there was a DROP OFF in 2009...." What happened to 24 store in 2008 from the Birmingham Business Journal Article of April 4, 2008, with the the goal of "no new corporate centers"?

AND.....9 of 11 new "ground up" stores opened in 2008 and all tracking under well projected sales - with 7 of the 9 tracking at about 50% of projected revenues (or 320k annual)......

NOLN BLOG POST (FROM CHARLOTTE OBSERVER Jun 28 2010)
Carousel Capital exits Express Oil Change investment
By Rick Rothacker rrothacker@charlotteobserver.com

"Charlotte-based private-equity firm Carousel Capital today said it exited its investment in Express Oil Change through a sale to St. Louis-based Thompson Street Capital Partners..... Carousel's fourth successful exit from an investment this year."

http://www.charlotteobserver.com/2010/06/28/1531335/carousel-capital-exits-express.html#ixzz0uc9Hb9g5

The company currently has 170 corporate and franchise owned stores.

"The franchisor claims "99% survival rate form ground up locations since 1996." Other Information Shows: EOC&SC Corp. stores v. Franchise Stores over the past three years:

2007: 51 Corp stores v. 106 franchisee stores

2009: 70 Corp stores v. 99 franchisee store

That's a 37% increase in Corp stores, while a 9% decrease in franchisee stores - during a time when they claim they do not want to open any additional Corp stores. Where are they getting these stores from? Failing franchisees? If yes, then how or why do you continue with the same business model and claim 99% survival rate?