Franchise Equity Partners

What Franchise Equity Partners does

Franchise Equity Partners (FEP) is a New York-based private investment firm founded in November 2021 by former Goldman Sachs partners Michael Esposito and Scott Romanoff. The firm provides minority, passive, and permanent capital to multi-unit franchise operators, with check sizes ranging from approximately $40 million to over $400 million and typical equity stakes of 20-49%. FEP deploys capital across roughly eight core verticals: quick-service restaurants (Pacific Bells, Fresh Dining Concepts), automotive dealerships (Georgica Auto Holdings, Parks Automotive Group, Hartz Penske dealerships), residential and commercial services (Reliable Residential/Precision Garage Door Service), beverage distribution (7 Crew/7 Brew), car wash (IMO Car Wash), heavy and agricultural equipment, fitness/health/beauty, and professional sports.

FEP's business model is structurally differentiated from conventional private equity. It operates as an independently managed portfolio company of HPS Investment Partners (~$100 billion AUM), which has committed $1.5 billion of permanent capital. Because there is no fund-life clock, FEP does not require operators to exit within a typical five- to seven-year window or to buy back FEP's stake; operators retain full operational control while gaining institutional capital and operating-partner expertise. Revenue mechanics for FEP itself are not publicly disclosed but, consistent with sponsor economics, derive primarily from management fees on committed capital and equity appreciation across portfolio holdings.

The portfolio has scaled rapidly: FEP reports $5 billion in aggregated revenues across 14 portfolio companies, 1,800 store fronts, and operations in 12 countries (including the United States, United Kingdom, Germany, and Australia). Marquee transactions include a $70 million minority investment in Georgica Auto Holdings (2022), a $55 million investment in Parks Automotive Group (2023), a 2024 partnership with Valvoline covering 38 stores, a majority stake in 7 Crew (2025), and the announced ~€406 million acquisition of IMO Car Wash from Driven Brands (2025), which marks FEP's first international transaction and adds 720 European and Australian locations.

Name

Franchise Equity Partners

Legal name

Franchise Equity Partners, LP

Website

https://www.fep-us.com/

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

Franchise Equity Partners is a New York-based private investment firm founded in 2021 that provides minority, passive, and permanent capital to multi-unit franchise operators across restaurants, automotive dealerships, home services, beverage, and car wash verticals.

Ownership category

akta.pro rank

Product category

Franchise Private Equity Investment

NAICS

Other Financial Investment Activities (5239), Other Investment Pools and Funds (5259), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Investors, Nec (6799)

akta.pro primary industry

Franchise Resale & Franchise Brokerage (Transfers/Resales) (FSAEAIAG)

Keywords

• Franchise equity investment
• Private equity capital
• Minority equity stakes
• Permanent capital solutions
• Franchise sector financing

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Equity Investment Returns: FEP generates returns through minority equity investments in franchise businesses. Their model involves taking minority stakes (20-49%) in exchange for capital, with operators retaining control of day-to-day operations. Returns are realized through equity appreciation and distributions.
2. Capital Appreciation: As a permanent, passive capital provider with no predefined investment horizon, FEP benefits from long-term value creation in portfolio companies without pressure to exit within a typical PE timeframe.

Go-to-market motion2 records

Distribution channels1 record

Marketing channels5 records

Core offering

Franchise Equity Partners provides minority (20-49%), passive, and permanent equity capital to franchise operators across multiple sectors including quick-service restaurants, automotive dealerships, beverage distribution, residential services, heavy equipment, and car washes. The firm takes minority stakes in exchange for growth, diversification/wealth transfer, or shareholder rationalization capital, while operators retain full control of day-to-day operations and there is no predefined exit timeline.

Product overview

Franchise Equity Partners (FEP) is a private investment firm, not a technology product company. It provides capital solutions to franchise businesses and their owners through a differentiated model of minority, passive, permanent, and flexible capital investments. The firm does not offer a unified software product or platform; instead, its 'offerings' consist of financial investment products and partnership structures. Its investment portfolio spans multiple franchise sectors including Quick-Service Restaurants (Pacific Bells, Fresh Dining Concepts), Automotive Dealerships (Georgica Auto Holdings, Parks Automotive Group), Beverage Distribution (7 Crew/7 Brew franchisee), Residential & Commercial Services (Reliable Residential/Precision Garage Door Service), and Car Wash Operations (IMO Car Wash). The capital solutions include Growth Capital for established operators seeking to accelerate growth, Diversification or Intergenerational Wealth Transfer for business owners seeking liquidity or transition, and Shareholder Rationalization for consolidating ownership and buying out disinterested shareholders.

Differentiator

Problem solved

Functional benefit

Products and services

• Capital Solutions

Quantifiable outcome

• $400 million deployed within first two years of operation
• +2 more outcomes

Named customers8 records

Segments8 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Six partnerships are on record, tiered core.

• Driven BrandscoreStrategic or Co-development Partner · 2 December 2025FEP acquired IMO Car Wash from Driven Brands for approximately €406-471 million. This represents FEP's first international acquisition, adding 720 locations across UK, Germany, and other European countries plus Australia. Driven Brands retains focus on North American operations.
• 7 Brew Drive-Thru CoffeecoreStrategic or Co-development Partner · 16 September 2025FEP invested in 7 Crew, the second-largest franchisee of 7 Brew, as part of a development deal to open 200+ new 7 Brew stands. 7 Brew is described as a category-defining brand that has grown from 14 units in 2021 to over 460 by 2025.
• NeighborlycoreStrategic or Co-development Partner · 16 October 2023Neighborly is the world's largest home services company with 30+ brands and 5,000+ franchises. FEP invested in Neighborly's largest franchisee (Reliable Residential) and has indicated plans to do more investments within the Neighborly system. Neighborly brands include Precision Garage Door Service, Mr. Rooter, Mr. Electric, Molly Maid, and others.
• Parks Automotive GroupcoreStrategic or Co-development Partner · 1 June 2023Parks Automotive Group welcomed FEP as a minority joint venture partner following a $55 million capital contribution to support the group's acquisition of Lake Norman and Gastonia CDJR dealerships and future strategic growth. Parks operates 21 franchises across NC, SC, and VA.
• Reliable Residential HoldCocoreStrategic or Co-development Partner · 1 June 2023FEP partnered with management of Reliable Residential HoldCo (formerly Rapp Operations) to grow Precision Garage Door Service and other Neighborly brands. The partnership includes operations in Clearwater FL, Columbus OH, Oklahoma City, and expansion into Orlando and Ocala FL markets.
• Georgica Auto HoldingscoreStrategic or Co-development Partner · 1 October 2022FEP made a $70 million minority investment in Georgica Auto Holdings, an automotive retail group with 23 franchises in the Northeast. FEP supported GAH's acquisition of Kolb Subaru in Orangeburg, NY and continues to partner with the group for expansion.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• L Catterton: Large consumer-focused PE firm with significant franchise exposure (including equity in brands like CorePower Yoga, Pure Barre). Overlaps with FEP's consumer-services franchise thesis but operates at a much larger AUM scale and more diversified mandate.
• KKR (Consumer & Retail): Global PE giant with consumer franchise holdings. Comparable on the franchise-investing dimension but typically pursues control transactions with defined exit timelines, contrasting with FEP's permanent-capital minority model.
• Apollo Global Management: Large alternative asset manager with franchise-related holdings (e.g., ADT, Watches of Switzerland). Broad incumbent rather than direct competitor — overlapping franchise exposure but differentiated strategy and structure.

Others

• Driven Brands: Public franchisor of auto services brands (MAACO, Take 5, ICWG) that sold IMO Car Wash to FEP. Not a competitor but a transactional counterparty representing the franchisor side of FEP's ecosystem.
• HPS Investment Partners: FEP's parent and sole disclosed capital backer ($100B AUM, ~$1.5B committed to FEP). Not a peer in the competitive sense, but the foundational financial partner enabling FEP's investment activity.

Direct peers

• Trinity Hunt Partners: Growth-oriented PE firm focused on franchised and consumer-services businesses. Comparable in mid-market franchise investment thesis and operator-friendly approach.
• Roark Capital Group: Atlanta-based PE firm specializing in franchise and consumer brands (Inspire Brands, Subway, Focus Brands). Most direct comparable as a scaled, franchise-focused PE investor with permanent-capital characteristics.
• Sentinel Capital Partners: Middle-market PE firm investing in franchise-based businesses across consumer services, restaurants, and specialty retail. Highly comparable in deal size, vertical focus, and minority-friendly structures.
• Princeton Capital Group: PE firm specializing in franchise and multi-unit consumer businesses. Direct peer given shared focus on franchised operators seeking growth capital and ownership transitions.

Emerging players

• Wildcat Capital Management: Specialized investment firm with franchise and small-cap focus. Smaller-scale emerging player with thematic overlap to FEP's franchise operator thesis.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• XTwitter.com/fep_us
• LinkedInlinkedin.com/company/franchise-equity-partners

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A5 records

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Franchise Equity Partners