Quick Lube Franchise Corporation

Babson Professor Bill Bygrave, Case Writer

Arthur M. Blank Center for Entrepreneurship

© Babson College, 1991.

Abstract

QLFC is a franchisee of Super Lube, the number one franchisor in the quick lube and oil-change business. In ten years, Frank Herget has built QLFC into Super Lube's biggest franchisee with 47 service centers. He is now concerned about his relationship with Super Lube because Huston Oil, an industry leader, has acquired an 80% interest in Super Lube and subsequently has replaced its top management. He believes there is a basic conflict between QLFC's objectives as a franchisee and Huston's objectives as both QLFC's franchisor and the exclusive supplier of QLFC's oils and lubrication products. After an unsatisfactory meeting with Huston's executives, Herget's company sues Huston, which denies the charges and files a countersuit. The case deals with Herget's negotations with Huston. This case is best used in courses with a focus on franchising, alliances, valuation, negotiations, and legal issues.

Location of the company: Massachusetts

Year(s) spanned by the case: 1989 through 1991

Industry segment(s): Quick oil change and lubrication for autos

Stage of the company: Growth to maturity

Age of the entrepreneur(s): 30s

DVD

There is no DVD available for this case.

Teaching Notes

A two page case teaching package, written by Bill Bygrave, is available for this case. The teaching package includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.