U.S. oil change operator announces opening of 700th location
With its flagship brands Grease Monkey® and SpeeDee Oil Change & Auto Service®, FullSpeed Automotive announced the opening of its milestone 700th location, as the automotive service industry leader reported impressive same-store-sales growth alongside rapid expansion.
Based in Greenwood Village, Colorado, U.S.A., FullSpeed Automotive is one of the largest franchisors and operators of automotive aftermarket repair facilities in the United States. CenterOak Partners, a Dallas, Texas-based private equity firm, sold FullSpeed Automotive last year to MidOcean Partners, a New York-based alternative asset manager specializing in middle-market private equity and alternative credit investments.
The auto care industry in the United States, despite the pandemic, is expected grow nearly 25% and reach USD477.6 billion by 2024, according to the Auto Care Association’s most recent research study, with more cars on the road, more miles driven, and the average age of cars growing into the teens.
Future of auto care industry remains strong
“The future of the industry remains strong and vibrant, and our goal is to focus on the success of our franchisees as we continue to expand our footprint – that’s what drives us,” said Kevin Kormondy, chief executive officer of FullSpeed Automotive. “Our growth and performance strategy has been centered on finding the right franchisees while continuing strong operations and maximizing unit-level profitability. We look forward to a momentous 2022 as we build on the strength of our flagship brands and grow our presence both domestically and internationally.”
In 2022, FullSpeed Automotive said it will focus on driving business by improving brand consistency and quality perceptions, to drive customer satisfaction and grow franchisee revenues.
According to the 2020 Franchise Disclosure Documents, the top 50% of Grease Monkey’s franchised stores generated USD1,053,386 average unit volume (AUV) and the top 50% of SpeeDee Oil Change & Auto Service’s franchised stores generated USD1,385,243 AUV. AUV is the current average annual sales that the concept is experiencing across all of their operating locations.
FullSpeed Automotive’s acquisition strategy has played a strategic role in its nationwide expansion. The company has completed 23 acquisition transactions since being acquired by MidOcean Partners in November 2020, and now has 697 franchised and company-owned locations. Acquisitions will remain a strong focal point of the expansion strategy as FullSpeed Automotive aims to acquire 150 competitor units in 2022.
Aggressive expansion goals
FullSpeed Automotive has set aggressive expansion goals to reach its 1,000-unit milestone by the end of 2022/early 2023 as it seeks single and multi-unit operators throughout the United States and internationally.
“We are excited about the continued expansion of the FullSpeed portfolio across the entire country,” said Kormondy. “Our acquisitions are not limited by geography or number of units. When we find the right acquisition partner we will move quickly, and we encourage independent auto center owners considering a sale of their business to contact us too.”