Private Equity Firm Buys a Texas Oil Change Chain to Extend its Take 5 Brand

Roark Capital Group, a private equity group that owns a plethora of well-known franchises, continues to feast on buying more companies.

The latest came through the Atlanta firm’s Driven Brands with the purchase of Advance Kwik Lube, a 25-store chain in Texas. That deal marked the ninth major deal Driven has completed since Roark bought the company four years ago. Roark is invested in 69 franchise brands. They include Buffalo Wild Wings, Aunties Anne’s, Arby’s, Carl’s Jr., Hardees, Corner Bakery Café, Moe’s Southwest Grill and Jamba Juice.

Over time, Charlotte-based Driven plans to rebrand Advance Kwik Lube’s locations to Take 5 Oil Change, a Louisiana-based chain Driven bought in 2016. With the deal, Take 5 would grow to 375 locations around the U.S.

"The addition of this business continues our strategy of aggressively expanding Take 5’s differentiated automotive service platform,” John Fitzpatrick, chief executive officer of Driven Brands, said in a statement.

Driven’s stable of brands also includes auto collision company Maaco and Meineke Car Care Centers. In December 2016, it bought Express Lube, a chain of 30 centers in and around San Antonio.

Take 5 just began franchising last year. Pete Frey, Take 5’s former president, became one of the first franchise owners. Earlier this year, the company announced that it had signed deals with franchisees for an additional 120 stores and that it plans to open 30 stores this year. Total investment ranges from $637,000 to more than $850,000 for each location.

The ground underneath a Take 5 tends to be owned by private investors. One sold in March for $1.24 million in Largo, Florida. It has an annual yield of just over 6%, known as the cap rate. Barry Wolfe, senior managing director for investments with real estate firm Marcus & Millichap, said developers also do “build-to-suit," which means building the store to Take 5’s specifications and then leases the property to the company.