Driven Brands announced that it has sold 15 Take 5 Oil Change locations to Secure Properties and immediately leased them back under long‑term triple‑net (NNN) leases. The transaction provides the company with a lump‑sum cash infusion while allowing it to continue operating the sites without interruption.
The sale generated approximately $385 million in cash proceeds, and the leaseback terms include a 10‑year NNN lease with a 3‑year renewal option. The deal is expected to reduce Driven Brands’ net leverage ratio by roughly 0.5x, helping the company move toward its goal of a net leverage below 3× by the end of 2026. The cash will be used to pay down debt and fund growth initiatives for its core franchise brands.
This sale is part of a broader divestiture strategy that has already seen the company sell its U.S. car‑wash business for $385 million and its international car‑wash business (IMO) for €406 million. By shedding non‑core real‑estate assets, Driven Brands is sharpening its focus on high‑margin franchise operations such as Take 5 Oil Change, which has delivered 19 consecutive quarters of same‑store sales growth as of Q1 2025. CEO Danny Rivera said the transaction “sharpens our focus on what we do best—scaling Take 5 and driving consistent cash generation through our franchise brands… By exiting it, we simplify our portfolio, strengthen our balance sheet, and position Driven Brands to create greater value for shareholders.”
The leaseback structure ensures that Take 5 locations continue to serve customers without service disruption, preserving the brand’s momentum. The company’s Q1 2025 results—$516.2 million in revenue and $6 million in net income—highlight the modest profitability of its franchise model, and the additional liquidity from the sale‑leaseback will support further expansion and potential new franchise openings.
Overall, the transaction signals Driven Brands’ commitment to deleveraging and concentrating on its most profitable segments. By converting real‑estate assets into cash, the company is better positioned to invest in growth, reduce debt, and meet its financial targets, reinforcing investor confidence in its long‑term strategy.
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