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Diversified Royalty Corp T.DIV

Alternate Symbol(s):  BEVFF | T.DIV.DB.A

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.


TSX:DIV - Post by User

Post by MelodicHysteriaon May 22, 2022 11:18pm
437 Views
Post# 34701647

Overlooked aspect of the Mr.Lube business

Overlooked aspect of the Mr.Lube businessWhile currently the elephant in the room is what will happen in 10 years once oil changes start to become a thing of the past, what is overlooked are the tire and brake system.

Not only do these systems require even more servicing then the typical combustion vehicle for this specific area of the vehicle, they are far more lucrative. Often requiring several 1000s of dollars of repairs every year due to the regenerative braking and unique make up of the tire and supporting structure to do that. Ontop of this, manufacturers are purposely putting up blocks for consumers to replace them yourself. You will NEED to go to a registered Garage (hence it costing 1000s). The Model 3 brake job is 4k alone (enough to make anyones head spin) 

Due to the connected nature of vehicles, if the manufacture sees you tampering with the vehicle, they simply disable it so a registered garage is mandatory.

Battery replacements will probably never be a thing Mr.Lube does (not exactly a quick job), but servicing the battery is part of the maintance schedule on every electric vehicle manual I have seen twice a year regardless of travel distance, This will more then likely become the bread and butter of Mr. Lube (Mr. Electric name change anyone?) 

Now the locked firmware issue we should pay attention to as the court battles play out with John Deere in the US on farmers rights to repair their tractors, combines, seeders and other farming equipment that have done exactly just that but otherwise, 10 years is probably an appropriate year range for the run down in mr.lube's oil change structure of the business 
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