Driven Brands Holdings Inc. (DRVN): Business Model Canvas [Dec-2025 Updated]

You're digging into Driven Brands Holdings Inc. now, especially after those big strategic sales, trying to map out exactly how this powerhouse generates its cash in late 2025. Honestly, it's a fascinating model: a sprawling network of nearly 4,800 locations built on the speed of Take 5 Oil Change and the breadth of CARSTAR and Meineke, all while aggressively paying down debt. Here's the quick math: they are guiding for continuing operations revenue between $1.85 billion and $1.87 billion this year, targeting Adjusted EBITDA of $445 million to $455 million. This canvas breaks down the engine driving those figures-from franchisee royalties to commercial fleet deals-so you can see the precise mechanics of their value creation strategy right now.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel the scale of Driven Brands Holdings Inc. as of late 2025. These aren't just vendor lists; they are the engines driving unit growth and service delivery across the platform.

Franchisees and Network Scale

The foundation of the business model rests heavily on its franchise partners. Prior to the announced divestiture of the international car wash business, Driven Brands Holdings Inc. operated approximately 4,900 locations across the United States and 13 other countries. This massive footprint is the direct result of successful partnerships with franchisees across brands like Meineke Car Care Centers and Maaco. The growth trajectory is clear, especially with the Take 5 Oil Change brand. Management stated a commitment to opening 150-plus new units annually, with specific guidance for 2025 targeting approximately 170 new Take 5 locations, broken down into 90 company-owned and 80 franchised units. Furthermore, the Take 5 pipeline shows deep commitment, with a visibility of over 900 locations, of which about 1/3 are secured or better, supporting a long-term target of 2,500 Take 5 locations. That's a lot of shared risk and reward.

Here's a quick look at the scale and growth focus:

• Total system locations (pre-IMO sale announcement): 4,900
• FY2025 Net Store Growth Projection: 175 to 200 new units
• Take 5 New Locations Expected in 2025: Approximately 170
• Take 5 Franchised New Locations Expected in 2025: Approximately 80
• Take 5 Long-Term Location Target: 2,500

Commercial Fleet Operators

Partnerships with commercial fleet operators are critical, especially for the Maintenance segment, which includes Take 5 Oil Change and Meineke Car Care Centers. These relationships provide consistent, high-volume service work. As of December 28, 2024, the Maintenance segment, which services these commercial customers, comprised 1,960 total locations. The company also noted that non-oil change revenue at Take 5 now accounts for over 25% of Take 5 sales, suggesting successful upselling and service diversification within these fleet accounts. The entire network services tens of millions of vehicles annually.

Insurance Companies and Specialized Services

For the collision and glass repair segments, insurance carriers are indispensable partners, driving the volume for brands like CARSTAR and Auto Glass Now. These relationships translate directly into revenue streams for approved repair networks. To be fair, the structure of these relationships is complex, but the focus on these segments is clear. Driven Brands Holdings Inc. announced that Auto Glass Now will begin reporting as a stand-alone segment starting in the fourth quarter of 2025, signaling increased focus on this specific partnership-dependent area. The company's overall system-wide sales were $1.6 billion in the third quarter of 2025.

Key segment figures relevant to these specialized services include:

Global Suppliers and Procurement

The sheer scale of Driven Brands Holdings Inc. allows for significant leverage with global suppliers. While I don't have the exact dollar amount for cross-brand procurement savings for 2025, the strategy is explicitly mentioned as a way to lower operational costs. The company completed a $500 million securitization offering in late 2025, which helps manage capital structure, indirectly supporting the ability to negotiate favorable terms with suppliers. The overall FY2025 revenue guidance for continuing operations is between $1.85 billion and $1.87 billion, demonstrating the scale that drives purchasing power.

Real Estate Developers and Expansion

The planned expansion relies heavily on real estate developers to secure sites for new openings. The company's stated goal for net store growth in fiscal year 2025 remains in the range of 175 to 200 new locations. This physical expansion is a key partnership activity, ensuring the network can meet projected demand. For example, the Take 5 segment alone is targeting 170 new locations for 2025. Finance: draft 13-week cash view by Friday.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Key Activities

You're looking at the core actions that keep the Driven Brands Holdings Inc. machine running through late 2025. It's all about execution, especially scaling the best parts of the portfolio while cleaning up the balance sheet.

Franchise Support: Training, marketing, and operational playbooks

The support structure focuses on driving performance across the network, particularly for the franchise components. This involves rolling out new operational standards and leveraging data for franchisee success.

• The company continues to innovate to drive traffic and efficiency across the system.
• There is a mention of a training platform providing opportunities to improve operational support and increase profitability for franchisees.
• Technology-enabled glass claims management services for insurance carriers were expanded to include Canada and the U.S..

For the Franchise Brands segment, system-wide sales reached $1.03 billion in the first quarter of 2025, though same store sales saw a 2.9% decrease in that same period.

Rapid Unit Expansion: Aggressively grow the Take 5 Oil Change footprint

Expansion is heavily weighted toward the Take 5 Oil Change brand, which management sees as the primary growth engine. The pipeline for new units across the entire portfolio remains significant.

Driven Brands Holdings Inc. has a commitment to opening 150 or more new units annually. For the full year 2025, the expectation is to open approximately 170 new Take 5 locations.

The company noted that new Take 5 units ramped to above $900,000 in year 1 Average Unit Volume (AUV) and reach $1.4 million by year 3. Also, non-oil change revenue now accounts for over 25% of Take 5 sales.

Corporate Store Operations: Directly manage high-growth Take 5 locations

Direct management is concentrated on company-owned Take 5 locations to drive initial growth and establish operational benchmarks. You can see the planned split for the 2025 expansion.

• Expected company-owned Take 5 openings for 2025: 90 units.
• Expected franchised Take 5 openings for 2025: 80 units.

The Take 5 segment delivered revenue growth of 15% in the first quarter of 2025.

Technology Development: Enhance proprietary operating systems and customer experience

While specific technology spending figures aren't detailed in the key activity summaries, the focus is evident in service rollouts and system-wide execution metrics.

• The rollout of differential fluid service was completed across the entire Take 5 system.
• The company has a pipeline of other services it can add over time to provide natural tailwinds.

Debt Reduction: Strategic use of divestiture proceeds to pay down debt

A major key activity is aggressively managing the capital structure, using cash from asset sales to reduce leverage. The company has a clear target date and metric for this deleveraging.

Driven Brands Holdings Inc. is committed to achieving 3x net leverage by the end of 2026.

The IMO divestiture is expected to reduce pro forma leverage by approximately 0.3x. Prior to Q2 2025, the company had already paid down just under $700 million of debt, moving leverage from 5x to 3.9x (pro forma).

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Key Resources

You're looking at the core assets that make Driven Brands Holdings Inc. tick as of late 2025. These aren't just line items; they are the engines driving system-wide sales growth of $1.6 billion in Q3 2025.

Diversified Brand Portfolio

The strength here is the breadth across maintenance, collision, and quick service. Take 5 Oil Change is definitely the current growth engine, delivering revenue growth of 14% and same store sales growth of 7% in the third quarter. The company is the parent to several leading names in the sector. Honestly, having these distinct brands helps insulate performance when one sub-sector faces headwinds, like the ongoing softness in the broader collision industry.

Real Estate/Store Footprint

Scale matters in this business, and Driven Brands Holdings Inc. has it. As of the end of the third quarter ending September 27, 2025, the network spanned approximately 4,900 locations across the United States and 13 other countries. The company is focused on net store growth, reaffirming a fiscal year 2025 expectation of adding approximately 175 to 200 net new units. The Take 5 segment alone expects to open approximately 170 new locations in 2025, split between 90 company-owned and 80 franchised units.

Proprietary Operating Systems

You see the results of standardized processes in the consistency of the Take 5 segment, which achieved its 19th consecutive quarter of same store sales growth as of Q3 2025. The company specifically points to Take 5 Oil Change's 'proven operating model' as a key strength. Furthermore, they completed the rollout of differential fluid service across the entire Take 5 system, which now contributes to non-oil change revenue accounting for over 25% of Take 5 sales.

Strong Balance Sheet

Financial flexibility is a major resource, especially when executing growth and deleveraging plans. Driven Brands Holdings Inc. ended the third quarter of 2025 with total liquidity of $755.7 million. This liquidity was composed of $162.0 million in cash and cash equivalents and $593.7 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. The company also improved its leverage position, ending Q3 2025 with a net leverage ratio of 3.8x Adjusted EBITDA, down from 3.9x in Q2 2025.

Here's a quick look at the balance sheet strength metrics as of the most recent reporting period:

• Total Liquidity (End of Q3 2025): $755.7 million
• Cash and Cash Equivalents (End of Q3 2025): $162.0 million
• Net Leverage Ratio (End of Q3 2025): 3.8x Adjusted EBITDA
• System-wide Sales (Q3 2025): $1.6 billion

Skilled Technicians

The operational backbone relies on a substantial, skilled labor force across the entire network. While a precise, current headcount isn't published as a key resource metric, the company's ability to deliver services like oil change, maintenance, collision repair, and paint services implies a large base of trained personnel across its thousands of locations. The management team emphasizes having the 'right people' to execute the growth and cash playbook.

Finance: draft 13-week cash view by Friday.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Driven Brands Holdings Inc. services and why franchisees buy into the system. It's all about tangible benefits backed by scale and performance metrics as of late 2025.

Speed and Convenience

For the quick-lube side, the primary draw is the speed of the Take 5 Oil Change brand. They are known for completing services in roughly 10 minutes. This is a significant differentiator when compared to the average oil change at other shops, which can take between 20 to 45 minutes. The convenience is amplified because customers stay inside their car the entire time. This focus on efficiency is clearly working; as of the third quarter of 2025, Take 5 achieved its 21st consecutive quarter of same-store sales growth. In that same quarter, the Take 5 segment saw revenue growth of 15% and same-store sales growth of 7%, with its Adjusted EBITDA margin expanding to 35%. Also, the push for higher-margin services is evident, as non-oil change revenue now accounts for over 25% of Take 5 sales. That's a clear win for the time-crunched consumer.

Full Vehicle Lifecycle Service

Driven Brands Holdings Inc. offers a comprehensive network that covers maintenance, collision, paint, glass, and repair. This breadth means a customer can theoretically stay within the network for most of their vehicle's needs. The sheer scale of the operation supports this proposition. Here's a look at the network size as of the third quarter of 2025, noting the recent divestiture of the U.S. car wash business in April 2025.

The company services tens of millions of vehicles annually across this footprint.

Trusted National Brands

The value proposition leans heavily on the recognition of its portfolio of brands, which include Take 5 Oil Change, Meineke Car Care Centers, Maaco, CARSTAR, 1-800-Radiator & A/C, and Auto Glass Now. This established presence helps lower the hurdle for new customer acquisition because the brand names carry inherent trust. For the flagship Take 5 segment, this trust is quantified by a Net Promoter Score (NPS) that remained in the high 70s through the third quarter of 2025. Franchisees find this national recognition compelling enough to commit to multi-unit agreements.

Consistent Quality

Quality is maintained through standardization across both corporate and franchised locations. At the quick-lube level, this means using quality oil types, such as high-end brands like Castrol and Mobil 1, and ensuring technicians are certified. Every Take 5 oil change includes a multi-point inspection and fluid top-offs, which standardizes the service beyond just the oil. For the broader network, franchisees are supported with brand-specific services, including dedicated brand marketing and procurement program savings, which helps ensure a consistent operational standard.

Value for Franchisees

The system is designed to offer compelling economic benefits to those operating the stores. The business model explicitly targets growth from Take 5 and free cash flow from its franchise brands. The unit economics are proven; new Take 5 units from the 2023 and prior vintages achieved average unit volumes (AUV) above $1 million within 24 months. Furthermore, the Franchise Brands segment itself posted strong profitability metrics, delivering Adjusted EBITDA margins of 66% in Q3 2025. The commitment from existing operators is a strong indicator of value; as of Q3 2025, about 40% of franchisees in the Franchise Brands side were already on their second or third area development agreement. The future pipeline is also visible, with approximately 900 locations in the pipeline, of which over 1/3 are already secured or further along.

Finance: draft 13-week cash view by Friday.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Customer Relationships

You're looking at how Driven Brands Holdings Inc. keeps customers coming back across its nearly 4,900 locations in the United States and 13 other countries as of late 2025.

Digital Engagement: Online scheduling and digital service reminders.

Specific metrics for online scheduling adoption or digital reminder volume aren't public, but the success of the Take 5 segment suggests high digital effectiveness. Take 5 Oil Change achieved same store sales growth of 7% in Q3 2025, marking its 19th consecutive quarter of growth. Furthermore, non-oil change revenue in that segment accounted for more than 20% of sales in Q2 2025, driven by attachment rates, which often correlates with effective digital follow-up or pre-service communication.

Loyalty Programs: Drive repeat business for routine maintenance.

While Driven Brands Holdings Inc. does not publish its direct loyalty program enrollment or repeat purchase rates, industry data suggests the value of such programs. Nationally, 41% of consumers state that a brand offering a loyalty program is a primary reason they stay loyal. The overall system-wide sales growth of 4.7% to $1.6 billion in Q3 2025 reflects the success of retaining customers across the network.

High-Touch Service: Personalized interaction at the point of service.

Personalized service is embedded in the brand structure. For instance, the Franchise Brands segment, which includes brands like Meineke and Maaco, has 2,676 locations. Industry-wide, 34% of consumers report that personalized customer support makes them feel closer to a brand. The Franchise Brands segment saw system-wide sales of $1.1 billion in Q3 2025, indicating a large base for direct customer interaction.

The performance across key customer-facing segments in Q3 2025 demonstrates the outcome of these relationship efforts:

Franchisee Support: Dedicated field support and training teams.

The relationship with franchisees is critical, as the company operates approximately 4,900 total locations, many of which are franchised. Training support is provided through ATI, which offers a multi-year training package typically paid for via a monthly subscription. The company continues to execute a plan for net store growth of approximately 175 to 200 locations for fiscal year 2025.

B2B Account Management: Dedicated teams for commercial fleet and insurance partners.

The B2B relationship structure supports multiple brands. For example, 1-800-Radiator & A/C had 205 locations as of December 28, 2024, distributing parts to repair shops and body shops. Furthermore, the company uses its in-house distributor, Spire Supply, to serve all Take 5 Oil locations, simplifying operations by reducing inventory needs. The overall network services tens of millions of vehicles annually.

The company's focus on core North American businesses following the planned divestiture of the international car wash business for €406 million (around $471 million) sharpens its operational focus on these key relationship segments.

• The company expects net store growth of approximately 175 to 200 for 2025.
• The Franchise Brands segment saw a 2.9% decrease in same store sales in Q1 2025, showing the pressure in some of these B2B/discretionary service relationships.
• The company's liquidity position at the end of Q3 2025 was $755.7 million.

Finance: Review the Q4 2025 B2B contract renewal rates by segment by next Tuesday.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Channels

Company-Operated Stores are a key growth vector, especially within the Take 5 Oil Change brand.

Driven Brands Holdings Inc. plans to open approximately 90 company-owned Take 5 locations in 2025.

Historically, the Take 5 business was 100% company-owned when Driven Brands Holdings Inc. acquired it, consisting of about 40-ish units outside of New Orleans.

Franchised Locations represent the stable, cash-generating part of the platform, working alongside the growth engine.

For 2025, Driven Brands Holdings Inc. expects to open approximately 80 franchised Take 5 locations.

The Franchise Brands segment, which includes brands like Meineke Car Care Centers and Maaco, had a store count of 2,676 as of the third quarter ending September 27, 2025.

The Take 5 brand has scaled to approximately 1,350-ish locations, with 40% of those being franchised.

The overall network, prior to the international car wash divestiture, was approximately 4,900 locations across the United States and 13 other countries.

The company continues to expect net store growth of approximately 175 to 200 locations for the full fiscal year 2025.

The scale of operations across these channels is detailed below for the third quarter of 2025:

Digital Platforms are used to support location finding and service information, though specific usage metrics aren't public.

The company is using a new media mix model to fine-tune marketing spend by geography/channel.

National Call Centers support centralized booking and customer service across the platform.

The overall system-wide sales for the company in Q3 2025 reached $1.6 billion.

Commercial Sales Force activities are embedded within the broader segment reporting, securing large contracts and fleet business.

The Franchise Brands segment generated $1.1 billion in system-wide sales in Q3 2025.

The Take 5 segment saw its system-wide sales increase 18% year-over-year.

The company's fiscal year 2025 revenue guidance, excluding the divested international car wash business, is projected to be between $1.85 billion to $1.87 billion.

• Take 5 Oil Change non-oil change revenue now accounts for over 25% of Take 5 sales.
• Take 5 Adjusted EBITDA margin expanded to 35% in Q3 2025.
• Franchise Brands segment achieved an Adjusted EBITDA margin of 66% in Q3 2025.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Customer Segments

You're looking at the customer base for Driven Brands Holdings Inc. as of late 2025. This company serves a wide array of needs, from routine upkeep to major repairs, through its network of locations.

The overall network size, as of December 28, 2024, stood at 5,179 total locations across North America, Europe, and Australia, with a structure that breaks down by service type. By the third quarter of 2025, the company operated approximately 4,900 locations across the United States and 13 other countries, servicing tens of millions of vehicles annually.

The customer segments are served across the company's operational structure, which, as of early 2025, highlights Take 5 Oil Change as a stand-alone segment alongside consolidated Franchise Businesses.

Here is a breakdown of the key customer groups and the associated operational metrics:

• Retail Vehicle Owners seek routine, non-discretionary maintenance like oil changes and tire services.
• Commercial Fleets require consistent, high-volume vehicle service across the network.
• Insurance Companies drive referrals for collision and glass repair work.
• Franchise Investors are entrepreneurs buying into proven, scalable business models.
• Vehicle Owners needing discretionary services utilize paint and collision repair brands like Maaco and CARSTAR.

The Franchise Brands segment, which includes many of the core maintenance and repair concepts, generated system-wide sales of $1.1 billion with a store count of 2,676 in the third quarter of 2025. The Franchise Brands segment also posted an adjusted EBITDA margin of 60.9% in the second quarter of 2025.

The Take 5 Oil Change business, a major driver of retail traffic, saw its revenue increase by 14% and same-store sales growth of 7% in the third quarter of 2025. This marks the 19th consecutive quarter of same-store sales growth for the company overall.

The Car Wash segment, which includes the international IMO brand, recorded system-wide sales of $51.4 million and had 717 stores in the third quarter of 2025.

The company's overall financial performance in Q3 2025 reflects the activity across these customer bases, with reported revenue of $535.7 million. The revised fiscal year 2025 revenue projection, following a divestiture, is now between $1.85 billion and $1.87 billion.

Here's a look at the location counts by the structure used in late 2024, which helps map the customer service types:

The business model relies on a mix of ownership structures to serve these segments, with 3,129 Franchised Stores, 1,330 Company-Operated Stores, and 720 Independently-Operated Stores as of December 28, 2024.

The Franchise Investors segment is crucial as they operate a significant portion of the network, which is why system-wide sales for Franchise Brands reached $1.1 billion in Q3 2025.

The company services approximately 70 million vehicles annually across its network.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Driven Brands Holdings Inc. engine as of late 2025, focusing on the numbers reported through the third quarter. Honestly, the structure shows a heavy reliance on store-level costs, which makes sense for a massive service network.

Store Operating Expenses: Labor, rent, and utilities for corporate stores.

The costs associated with running company-operated locations are a major component. For the third quarter of 2025, the increase in expenses for company and independently operated stores year-over-year was $16.4 million, which was driven by higher sales volumes and the addition of more stores compared to Q3 2024. This figure bundles the direct costs like technician wages, facility leases, and utilities across those locations.

Franchise Support Costs: Training, marketing, and technology for franchisees.

Specific line items for franchise support costs-like dedicated training programs or technology platform maintenance passed to franchisees-aren't broken out in the public Q3 2025 statements. However, a significant cost driver that supports the franchise network is the advertising contribution revenue, which was $27.88 million in Q3 2025. This revenue funds system-wide marketing efforts that benefit all franchisees.

Cost of Goods Sold (COGS): Oil, parts, and materials for maintenance and repair.

The direct cost of materials is embedded within the overall operating structure. While a clear COGS figure isn't isolated, the revenue generated from the Supply and Other segment in Q3 2025 was $74.31 million. This revenue stream is directly tied to the cost of goods sold, as it represents the oil, parts, and materials Driven Brands Holdings Inc. supplies to its network for maintenance and repair services.

Selling, General, and Administrative (SG&A): Corporate overhead and marketing.

Corporate overhead, which includes executive salaries, central office functions, and broader marketing campaigns, is captured in SG&A. In the second quarter of 2025, there was a year-over-year increase in SG&A of $63.3 million. This highlights the scaling costs associated with managing a platform of this size, even as the company focuses on operational efficiencies.

Interest Expense: Servicing significant debt, with a focus on de-levering.

Servicing the debt load is a critical, non-operational cost. For Q2 2025, the net interest expense was $31.4 million. The focus on de-levering is clear: the net leverage ratio improved to 3.8x Adjusted EBITDA by the end of Q3 2025, partly due to using $113 million in cash proceeds from a seller note monetization in July 2025 to pay down term loan principal. The planned divestiture of the international car wash business is also explicitly aimed at reducing pro forma leverage by approximately 0.3x.

Here's a quick look at the key Q3 2025 financial context that drives these cost allocations:

The company is definitely managing a complex cost base, balancing the variable costs of high-volume service centers with the fixed costs of corporate overhead and debt service. Finance: draft 13-week cash view by Friday.

Driven Brands Holdings Inc. (DRVN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Driven Brands Holdings Inc. brings in money as of late 2025, focusing only on the hard numbers from continuing operations.

The overall financial picture for the full fiscal year 2025, after accounting for the international car wash divestiture, looks like this:

The revenue streams are clearly segmented across company-owned operations and the franchised network. The Take 5 Oil Change segment is a major driver; for instance, in Q3 2025, it represented approximately 75% of Driven Brands' overall adjusted EBITDA.

Corporate Store Sales are generated from company-owned locations, most notably the Take 5 Oil Change stores. Driven Brands Holdings Inc. planned to open approximately 90 new company-owned Take 5 locations in 2025, adding to this revenue base.

Franchise Royalties and Initial Franchise Fees flow from the extensive network of franchised brands, which are over 99% franchised in the Franchise Brands segment. Here's what we know about the franchise economics:

• Initial Franchise Fees are tied to new license payments. Driven Brands expected to open approximately 80 new franchised Take 5 locations in 2025.
• The average franchise unit intake was reported as ramping to $1.5 million in top line revenue.
• Franchise Royalties are the ongoing revenue stream. Franchise unit profitability shows EBITDA margins in the high teens.
• Franchisees are seeing a strong return, with a reported 30% cash on cash return on those franchise investments.

Also, within the Take 5 system, non-oil change services are becoming a bigger part of the revenue mix, accounting for over 25% of Take 5 sales as of Q3 2025. This diversification helps stabilize the revenue streams, defintely.

Finance: draft 13-week cash view by Friday.