Private investment firm focused on franchise businesses
Franchise Equity Partners
- HeadquartersNew York, NY S4
- Founded2021 S5
- Websitefep-us.com
- Last verifiedOctober 20, 2026
At a glance
| Deal types | Minority, Growth, Platform S2 |
|---|---|
| Geography | United States S3 |
| Sectors | Auto Services & Collision, Consumer & Food |
What Franchise Equity Partners buys
Franchise Equity Partners (FEP) is a New York investment firm that puts money only into franchise businesses, mostly large multi-unit franchisees. It launched in 2021 as a portfolio company of funds managed by HPS Investment Partners and now cites $1.5 billion of committed capital. Its target list covers quick-service restaurants, auto dealerships, beverage distribution, heavy equipment dealers, residential and commercial services, fitness, health and beauty, professional sports and other multi-site consumer services.
Its founding model is a passive, permanent minority stake of 20% to 49% with no set exit date, so the owners keep running the business. The money can fund growth, let an owner diversify, pass the company to the next generation or buy out other shareholders. Recent deals have gone further than that: a majority stake in 7 Brew franchisee 7 Crew, the purchase of 38 company-owned Valvoline oil change stores in Texas, and outright purchases of IMO Car Wash and Bravo Fit outside the US. FEP does not publish a minimum company size.
Recent deals
Announced in the 24 months before October 20, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Jul 2026 | Bravo FitAcquired the Planet Fitness franchisee in Australia, which runs 32 clubs; management stays in place | Platform | Source | |
| Dec 2025 | IMO Car WashAgreed to buy the tunnel car wash chain of 720 sites, mostly in the UK and Germany, from Driven Brands; FEP's first deal outside the US, completed in January 2026 | Platform | Auto Services & Collision | Source |
| Sep 2025 | 7 CrewMajority stake in the second-largest 7 Brew drive-thru coffee franchisee, with more than 200 new stands planned; existing investors keep large stakes | Platform | Consumer & Food | Source |
| Nov 2024 | Velocity Auto CareNew franchisee formed to buy 38 company-owned Valvoline Instant Oil Change stores in Central and West Texas | Platform | Auto Services & Collision | Source |
Portfolio by sector
From the firm's portfolio page S6.
7 Brew franchisee
- 7 Crew
Car wash operator
- IMO Car Wash
Focus Brands franchisee (minority stake)
- Fresh Dining Concepts
Planet Fitness franchisee (Australia)
- Bravo Fit
Precision Garage Door Service franchisee
- Reliable Residential HoldCo
Valvoline Instant Oil Change franchisee
- Velocity Auto Care
Greymont’s take
How Franchise Equity Partners fits a seller
FEP suits established multi-unit franchisees who want cash or growth capital without handing over the business. Its standard offer is a 20% to 49% stake with no fixed holding period and no required minimum return, and the owners stay in charge of daily decisions. That can help an owner plan an estate, buy out a partner or pay for new units under a development agreement, which is what FEP is backing at 7 Crew, with more than 200 planned 7 Brew stands.
Owners of quick lube, car wash and other auto service franchises should know FEP's Velocity Auto Care platform, built from 38 Valvoline stores in Texas, and its IMO Car Wash chain. Because recent deals include majority stakes and full buyouts, an owner should ask early which structure FEP has in mind and what say it would have in major decisions such as new units, debt or a later sale.
Questions owners ask
Does Franchise Equity Partners take minority stakes?
Yes. Its stated approach is a minority common equity stake of 20% to 49%, with the owners keeping control of day-to-day decisions and no set investment horizon. It has also done majority deals, such as 7 Crew in September 2025.
Does Franchise Equity Partners invest in auto service franchises?
Yes. In November 2024 it agreed to buy 38 company-owned Valvoline Instant Oil Change stores in Texas, now run as Velocity Auto Care, and in December 2025 it agreed to buy the IMO Car Wash chain from Driven Brands.
What kinds of franchise businesses does FEP look at?
Its target list covers quick-service restaurants, auto dealerships, beverage distribution, heavy equipment dealers, residential and commercial services, fitness, health and beauty, professional sports and other multi-site consumer services.
Sources
- S1Franchise Equity Partners home page Accessed October 20, 2026
- S2Franchise Equity Partners: Our Approach Accessed October 20, 2026
- S3Franchise Equity Partners: Our Investments Accessed October 20, 2026
- S4Franchise Equity Partners: Contact (office address) Accessed October 20, 2026
- S5Franchise Equity Partners Launches to Provide Tailored Capital Solutions to Franchise Operators (Business Wire, November 8, 2021) Accessed October 20, 2026
- S6Franchise Equity Partners: Press Releases Accessed October 20, 2026
- S7FEP Forms Strategic Partnership with Valvoline (PR Newswire, November 19, 2024) Accessed October 20, 2026
- S8FEP Invests in Second Largest 7 Brew Franchisee (PR Newswire, September 16, 2025) Accessed October 20, 2026
- S9FEP to Acquire IMO Car Wash from Driven Brands (December 2, 2025) Accessed October 20, 2026
- S10FEP Acquires Bravo Fit, Planet Fitness' Australian Franchisee (PR Newswire, July 20, 2026) Accessed October 20, 2026
- S11FEP Takes Stake in Fresh Dining Concepts (Restaurant Finance Monitor, May 2022) Accessed October 20, 2026
- S12FEP Acquires Multi-Unit Neighborly Franchisee (Franchise Times, October 26, 2023) Accessed October 20, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Franchise Equity Partners. Figures are as reported on the dates shown and may have changed. Request a correction