Mega-franchisee Franchise Equity Partners takes over in Texas.
By Andrew Carlo
Valvoline announced that it will re-franchise 38 Texas locations to a new franchisee.
The plan calls for a collection of existing Valvoline Instant Oil Change service centers to be transferred to the guidance of Velocity Auto Care. According to Valvoline, the service centers are located in Austin, San Antonio, El Paso and west Texas.
“One of our strategic priorities is accelerating our network growth,” said Lori Flees, Valvoline Inc. president and CEO. “We are pleased to have franchisees that can expand select markets more rapidly than the company was planning. More service centers, whether owned and operated by the company or a franchise, deliver more convenience for our customers, more opportunities for our team members, and more value to our shareholders.
Velocity Auto Care, is a portfolio company of Franchise Equity Partners which owns a portfolio of 10 different franchise companies operating quick-service restaurants, residential home services, auto dealerships, and more. Franchise Equity Partners operates more than 750 storefronts across 33 states.
“We are excited to join the Valvoline Instant Oil Change franchise,” said Mike Esposito, co-founder and managing partner of Franchise Equity Partners. “Valvoline Inc. is a brand Americans have known for generations, and everyone at Velocity Auto Care is committed to continue delivering the quick, easy, trusted service that customers of central and west Texas appreciate and depend on.”
This transaction is the third re-franchising initiative undertaken by Valvoline Inc. The company completed two transactions in fiscal year 2024, converting a total of 28 company stores to franchises in the growing markets of Las Vegas and Denver.
Footprint Capital is serving as financial advisor to the company.
Valvoline also recently reported that sales from continuing operations for its fourth quarter of 2024 grew 12% to $436 million as same-store-sales rose 5.4%. Sales for the full year also jumped ahead by 12% to $1.6 billion.
The Lexington, Kentucky-based company’s net income from continuing operations witnessed growth of 19% to $89 million for the quarter as its full-year net income saw growth of 8% to $215 million.
Altogether, Valvoline operates 2,000 franchised and company-operated service centers across the United States and Canada. The company said it completes more than 28 million services annually system-wide.
