Buying Guides
Take 5 NNN Investment Guide
Take 5 Oil Change has posted an exceptionally consistent same-store sales track record in recent years, making it one of the more closely watched names in the quick-lube net lease category despite carrying a lower credit rating than some peers.
Key takeaways
- Take 5 operates under Driven Brands (NASDAQ: DRVN) and carries an S&P rating of B+, with no current Moody’s rating.
- Properties are commonly franchisee owned and operated, making franchisee-specific due diligence essential.
- Take 5 has posted 15 consecutive quarters of same-store sales growth despite its lower formal credit rating.
- Trailing 12-month average cap rate is approximately 5.93%, up from 5.58% the prior year.
- The absolute NNN structure offsets some credit risk with zero landlord expense responsibility.
Corporate snapshot
Take 5 Oil Change operates under Driven Brands Holdings Inc. (NASDAQ: DRVN), a large, publicly traded multi-brand automotive services company. Take 5 carries an S&P rating of B+ (Moody’s does not currently rate the entity), placing it below Valvoline’s already sub-investment-grade tier.
Despite the lower formal rating, Take 5 has posted genuinely strong recent operating results, including 15 consecutive quarters of same-store sales growth and double-digit segment revenue growth.
A franchisee-driven model
Similar to Valvoline, Take 5 Oil Change properties are commonly franchisee owned and operated, making franchisee-specific due diligence an essential step rather than relying on brand-level performance alone. See “How to Evaluate Tenant Credit.”
Why operating momentum matters here
Take 5’s recent performance is worth highlighting specifically because it runs somewhat counter to its formal credit rating: strong, consistent same-store sales growth and improving profitability (adjusted EBITDA growth, improved net income, and a strong reported liquidity position) suggest an operationally healthy brand, even though the B+ rating reflects a still-developing credit profile relative to more established peers.
Current cap rate range
Take 5 properties have traded at an average cap rate of approximately 5.93% on a trailing 12-month basis, up from 5.58% the prior year, reflecting the brand’s sub-investment-grade rating and franchisee-driven structure.
Cap rates vary based on the specific franchisee’s financial strength and remaining lease term. Confirm current, deal-specific pricing before relying on a general benchmark.
Lease terms typically seen
Take 5 properties commonly feature absolute NNN leases with 15-year terms and frequent rent increases. Properties are typically smaller-format (1,000 to 2,000 square feet) on 0.67 to 1.25 acre lots, with average sale prices around $1.7 million.
If you’re unfamiliar with this lease structure, read our guide on What Is an NNN Lease? to understand how responsibilities are divided between the landlord and tenant.
Key investment risks to evaluate
- Franchisee credit quality is the central underwriting question, given the predominantly franchised model.
- Lower formal credit rating than some category peers (B+, unrated by Moody’s), even amid strong recent operating performance, worth weighing both data points rather than relying on either alone.
- Small land parcels, typical of the quick-lube drive-thru format, worth understanding for long-term flexibility.
- Absolute NNN structure is a genuine positive, offsetting some of the credit risk with zero landlord expense responsibility and consistent rent growth.
Take 5 vs. Valvoline: quick comparison
Both brands share a similar franchisee-driven, absolute NNN structure, but Take 5’s parent (Driven Brands) currently carries a lower formal rating than Valvoline’s parent, even though Take 5 has shown stronger recent same-store sales momentum. Neither difference is decisive on its own, both warrant the same franchisee-level due diligence.
Who this investment fits
Take 5 properties tend to suit investors comfortable with sub-investment-grade, franchisee-driven credit who are drawn to the brand’s genuinely strong recent operating momentum, in exchange for a higher starting yield than more established, higher-rated auto service peers.
Educational notice: Always confirm the specific franchisee’s financial strength and current market pricing with your broker before making an offer.
Frequently asked questions
Is Take 5 Oil Change investment grade?
No. Take 5 carries an S&P rating of B+, sub-investment-grade, and is not currently rated by Moody’s, though the brand has shown strong recent operating momentum.
Are most Take 5 properties franchisee or corporate-operated?
Take 5 properties are commonly franchisee owned and operated, making franchisee-specific due diligence essential rather than relying on brand-level performance alone.
What’s the current cap rate for Take 5 properties?
Take 5 properties have traded at an average of approximately 5.93% on a trailing 12-month basis, up from 5.58% the prior year.
How does Take 5 compare to Valvoline as an investment?
Both share a similar franchisee-driven, absolute NNN structure, but Take 5 currently carries a lower formal credit rating than Valvoline, despite showing stronger recent same-store sales momentum.
Considering a Take 5 Oil Change NNN property?
QEM Estates helps buyers evaluate franchisee strength on Take 5 opportunities within the broader auto service category.
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