Valvoline Inc. to Refranchise 38 Company Stores; Welcomes New Franchise Partner Velocity Auto Care
Valvoline Inc. (NYSE: VVV) announces plans to refranchise 38 Valvoline Instant Oil Change service centers to Velocity Auto Care, a portfolio company of Franchise Equity Partners. The service centers are located in Austin, San Antonio, El Paso, and west Texas. This marks Valvoline's third refranchising initiative, following two transactions in FY2024 that converted 28 company stores to franchises in Las Vegas and Denver. Velocity Auto Care, which operates over 750 storefronts across 33 states, will join as Valvoline's newest franchise partner.
Valvoline Inc. (NYSE: VVV) annuncia piani per refranchising di 38 centri di servizio Valvoline Instant Oil Change a Velocity Auto Care, una società del portafoglio di Franchise Equity Partners. I centri di servizio si trovano ad Austin, San Antonio, El Paso e nel Texas occidentale. Questo rappresenta la terza iniziativa di refranchising di Valvoline, dopo due transazioni nell'anno fiscale 2024 che hanno convertito 28 negozi dell'azienda in franchising a Las Vegas e Denver. Velocity Auto Care, che opera oltre 750 punti vendita in 33 stati, diventerà il nuovo partner in franchising di Valvoline.
Valvoline Inc. (NYSE: VVV) anuncia planes para refranquiciar 38 centros de servicio Valvoline Instant Oil Change a Velocity Auto Care, una empresa de la cartera de Franchise Equity Partners. Los centros de servicio se encuentran en Austin, San Antonio, El Paso y el oeste de Texas. Esta es la tercera iniciativa de refranquicia de Valvoline, tras dos transacciones en el ejercicio fiscal 2024 que convirtieron 28 tiendas de la compañía en franquicias en Las Vegas y Denver. Velocity Auto Care, que opera más de 750 puntos de venta en 33 estados, se unirá como el nuevo socio franquiciado de Valvoline.
발볼린 주식회사 (NYSE: VVV)는 벨로시티 오토 케어에게 38개의 발볼린 인스턴트 오일 체인지 서비스 센터를 재프랜차이즈할 계획을 발표했습니다. 해당 서비스 센터는 오스틴, 샌안토니오, 엘파소 및 서부 텍사스에 위치해 있습니다. 이는 발볼린의 세 번째 재프랜차이징 사업으로, 2024 회계연도에 라스베이거스와 덴버에서 28개의 회사 매장을 프랜차이즈로 전환한 후에 진행됩니다. 벨로시티 오토 케어는 33개 주에서 750개 이상의 매장을 운영하고 있으며, 발볼린의 새로운 프랜차이즈 파트너로 합류하게 됩니다.
Valvoline Inc. (NYSE: VVV) annonce des plans pour réfranchiser 38 centres de service Valvoline Instant Oil Change à Velocity Auto Care, une entreprise du portefeuille de Franchise Equity Partners. Les centres de service sont situés à Austin, San Antonio, El Paso et au Texas occidental. Cela marque la troisième initiative de réfranchisage de Valvoline, après deux transactions au cours de l'exercice 2024 qui ont converti 28 magasins de l'entreprise en franchises à Las Vegas et Denver. Velocity Auto Care, qui exploite plus de 750 points de vente dans 33 États, rejoindra Valvoline en tant que nouveau partenaire franchisé.
Valvoline Inc. (NYSE: VVV) kündigt Pläne an, 38 Valvoline Instant Oil Change-Servicezentren an Velocity Auto Care, ein Portfolio-Unternehmen von Franchise Equity Partners, zu refranchisieren. Die Servicestellen befinden sich in Austin, San Antonio, El Paso und Westtexas. Dies markiert Valvolines dritte Refranchising-Initiative, nach zwei Transaktionen im Geschäftsjahr 2024, die 28 Firmengeschäfte in Las Vegas und Denver in Franchises umwandelten. Velocity Auto Care, das über 750 Verkaufsstellen in 33 Bundesstaaten betreibt, wird Valvolines neuer Franchise-Partner.
- Strategic expansion of service network through franchising
- Partnership with established operator managing 750+ storefronts across 33 states
- Successfully completed three refranchising initiatives, converting total of 66 stores
- Reduction in company-owned locations may impact direct revenue control
Insights
This strategic refranchising of 38 Valvoline service centers represents a significant shift in VVV's business model and capital allocation strategy. The move aligns with industry trends toward asset-light operations, which typically result in higher margins and more predictable revenue streams through franchise fees and royalties. The partnership with Franchise Equity Partners, which operates 750+ storefronts across 33 states, brings experienced multi-unit operators into the system.
Following two previous refranchising deals in FY24 totaling 28 stores in Las Vegas and Denver, this third initiative demonstrates accelerating momentum in VVV's transformation. The shift from company-owned to franchise operations should improve capital efficiency and reduce operational overhead while maintaining brand presence. This model typically provides more stable cash flows and higher returns on invested capital, though it may impact top-line revenue in the short term.
"One of our strategic priorities is accelerating our network growth," said Lori Flees, Valvoline Inc. President and Chief Executive Officer. "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. We look forward to many years of outstanding partnership with our newest franchisee, Velocity Auto Care."
The new franchise partner, Velocity Auto Care, is a wholly owned 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. In total, 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-Founding 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
This transaction will be the third refranchising initiative by Valvoline Inc. The company completed two transactions in fiscal year 2024, converting a total of 28 company stores to franchise in the growing markets of
Footprint Capital is serving as financial advisor to the company.
The company will share additional details about this refranchising effort during its Fourth Quarter FY24 Earnings Announcement at 9 a.m. ET today, Nov. 19.
About Valvoline Inc.
Valvoline Inc. (NYSE: VVV) delivers quick, easy, trusted service at more than 2,000 franchised and company-operated service centers across
About Franchise Equity Partners:
Franchise Equity Partners is a private investment firm specializing in providing capital to franchise businesses and their owners. Its differentiated approach combines extensive corporate finance and operating experience with an initial target portfolio size of
Forward-Looking Statements
Certain statements herein, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, executing on the growth strategy to create shareholder value by driving the full potential in the Company's core business, accelerating network growth and innovating to meet the needs of customers and the evolving car parc; realizing the benefits from the sale of Global Products; and future opportunities for the remaining stand-alone retail business; and any other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage ratio, anticipated business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations and targets for future periods. Valvoline has identified some of these forward-looking statements with words such as "anticipates," "believes," "expects," "estimates," "is likely," "predicts," "projects," "forecasts," "may," "will," "should," and "intends," and the negative of these words or other comparable terminology. These forward-looking statements are based on Valvoline's current expectations, estimates, projections, and assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission (the "SEC"), including in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures about Market Risk" sections of Valvoline's most recently filed periodic reports on Forms 10-K and 10-Q, which are available on Valvoline's website at http://investors.valvoline.com/sec-filings or on the SEC's website at http://www.sec.gov. Valvoline assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, unless required by law.
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For Further Information
Media Inquiries
Angela Davied
+1 (877) 508-0832
media@valvoline.com
Investor Inquiries
Elizabeth B. Clevinger
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IR@valvoline.com
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SOURCE Valvoline Inc.
FAQ
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