Case Study - ROI for Multi-Unit Jiffy Lube Franchise Owner: Driving Revenue Growth and Streamlined Operations
When this 20+ unit Jiffy Lube & Mighty Auto Parts chain approached Acctivator, they were struggling with inaccurate, inconsistent and delayed reporting that prevented management from making strategic business decisions. Here’s how we turned things around:
Challenge
After rapid turnover in their finance and accounting function, this multi-unit franchise owner experienced severely delayed and inaccurate reporting. Month-end close routinely took more than 30 days, which meant that management could not make timely business decisions. Beyond that, leadership had little insight into which stores were thriving, and which were struggling. The result? They were unable to properly forecast cash flow or focus their turnaround efforts on their biggest needs.
Solution
Acctivator provided this client with premium tier accounting, with fractional CFO services. Through a consultative approach, we discovered where systems were breaking down, and what the most pressing issues were. Through a series of cleanup projects and system implementations, Acctivator was able to overhaul the monthly reporting program for the client, resulting in a 10-day close.
Key actions included:
Implementation of a month-end checklist
Including additional control steps aimed at historically risky areas
Inventory / cost of goods tracking
Royalty processing
Built cost allocation tables
Allowed for key costs, like payroll, to be viewed accurately at the store level for profitability analysis
Overhauled AP system
Instituted controls over weekly pay runs to ensure cash availability and management visibility
Payment controls to key vendors, like utility providers, to ensure business continuity
Results
Improved marketing ROI visibility
3.2x return on every marketing dollar spent YoY
Improved labor visibility
Direct labor went from 35% to 30% YoY
Zero days of store closure due to missed AP payments to key vendors
Improved financial clarity and reliability – at store level and consolidated
Fewer overtime hours for office staff due to streamlined processes
Peace of mind over spend management and controls
Acctivator provides full-service accounting support. Our personalized solutions give you the insights you need to make important decisions, and frees up your time so you can focus on what’s most important. Connect with us to learn how we can take administrative burdens off your plate.
Testimonial
“I can’t recommend the team at Acctivator enough! When I took over the business, I quickly realized that I needed their help, and they delivered at every turn. There has yet to be an issue I have presented to them that they haven’t solved. The insights I’ve received have allowed me and my team to navigate strategic decisions that have helped turn the business around. I know we would not be where we are today without them. They have won my trust, and I can’t imagine operating the business without them as my Finance and Accounting Partner.” –Tripp Setliff, COO