Franchise Equity Partners (FEP), a private investment firm focused on long-term franchising partnerships, has signed a definitive agreement to acquire IMO Car Wash — the largest tunnel car wash operator in the world — from automotive services group Driven Brands. The deal includes IMO’s full portfolio of approximately 720 locations across the United Kingdom, Germany, nine additional European countries and Australia, marking FEP’s first global acquisition.

Founded more than 60 years ago, IMO Car Wash is recognised as a leading global car wash brand, serving millions of customers annually through its high-volume tunnel wash network and extensive on-site retail partnerships. The acquisition reflects FEP’s strategy to partner with category-leading multi-unit businesses where scale, operational strength and franchise-like models create defensible long-term value.(Source: Pulse2.0)

Scott Romanoff, Co-Managing Partner at FEP, said the transaction represents a rare opportunity to acquire a market-leading business with a deep customer base and robust retail relationships.

“We believe IMO represents a rare opportunity to acquire a market-leading, long-standing brand with a highly defensible footprint and a strong operating team. With IMO’s established customer base, retail partnerships, and experienced leadership, we see significant opportunity to drive organic growth and continue strengthening the brand.”

This deal also highlights FEP’s first step outside the United States, expanding its platform into international markets and unlocking growth potential across a diverse geographic footprint. Mike Esposito, Co-Managing Partner at FEP, said:

“Our investment in IMO is FEP’s inaugural transaction outside the United States. We believe this represents the ideal foundation to expand our strong multi-unit retail presence… to the United Kingdom, Europe and beyond.”

Driven Brands Strategic Refocus

For Driven Brands Holdings Inc. — the automotive services parent company that previously owned IMO — this divestiture aligns with its broader effort to streamline its portfolio and sharpen its operational focus. Driven Brands announced the sale of IMO for approximately €406 million, with proceeds expected to strengthen the balance sheet by reducing leverage and supporting core franchise business growth.

Originally, Driven Brands had included IMO in its automotive services segment alongside its other franchise-oriented brands. In selling IMO, Driven Brands aims to prioritise key growth drivers such as its Take 5 Oil Change brand and other stable franchise revenue generators. CEO Danny Rivera noted the move is part of a strategic reshaping to enhance long-term shareholder value.(Source: SEC)

What This Means for the Car Wash Sector

IMO’s global footprint — spanning Europe, the UK and Australia — positions it as a significant platform within the car wash industry, a sector increasingly attracting private equity and strategic investment due to its recurring revenues, subscription-style models and scalable service offerings. Continued investment and operational optimisation under FEP may accelerate growth initiatives, including potential site modernisation, service enhancement and expanded retail partnerships.

For franchise and multi-unit operators, this trend signals a broader appetite for investments in high-volume, asset-light service models that combine predictable cash flows with recurring customer demand — characteristics that are also attractive in other franchise categories such as quick service restaurants and automotive services.