Driven Brands (DRVN) 10-Q 8 Aug 24 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 29, 2024	Aug. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 29, 2024
Document Transition Report	false
Entity File Number	001-39898
Entity Registrant Name	Driven Brands Holdings Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3595252
Entity Address, Address Line One	440 South Church Street
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28202
City Area Code	704
Local Phone Number	377-8855
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	DRVN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		164,081,878
Entity Central Index Key	0001804745
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-28

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Net revenue:
Total net revenue	$ 611,566	$ 606,851	$ 1,183,792	$ 1,169,318
Operating Expenses:
Selling, general, and administrative expenses	121,123	96,815	237,525	209,143
Acquisition related costs	271	3,750	2,065	5,597
Store opening costs	940	1,377	2,203	2,402
Depreciation and amortization	44,633	45,419	87,862	83,617
Asset impairment charges and lease terminations	12,497	6,044	31,823	6,211
Total operating expenses	531,059	509,258	1,044,767	994,539
Operating income	80,507	97,593	139,025	174,779
Other expenses, net:
Interest expense, net	31,796	40,871	75,568	79,012
Foreign currency transaction loss (gain), net	681	(1,302)	5,002	(2,977)
Other expense, net	32,477	39,569	80,570	76,035
Income before taxes	48,030	58,024	58,455	98,744
Income tax expense	17,871	20,275	24,035	31,246
Net income	$ 30,159	$ 37,749	$ 34,420	$ 67,498
Earnings per share:
Basic (in dollars per share)	$ 0.18	$ 0.23	$ 0.21	$ 0.41
Diluted (in dollars per share)	$ 0.18	$ 0.22	$ 0.21	$ 0.40
Weighted average shares outstanding
Basic (in shares)	159,795	162,911	159,713	162,848
Diluted (in shares)	160,765	166,888	160,683	166,882
Franchise royalties and fees
Net revenue:
Total net revenue	$ 50,029	$ 49,805	$ 95,074	$ 93,320
Company-operated store sales
Net revenue:
Total net revenue	394,681	394,578	769,137	770,644
Operating Expenses:
Operating expenses	254,174	257,040	496,227	500,449
Independently-operated store sales
Net revenue:
Total net revenue	60,280	61,533	113,327	114,065
Operating Expenses:
Operating expenses	31,956	31,958	61,311	61,322
Advertising contributions
Net revenue:
Total net revenue	24,911	24,749	48,981	46,426
Operating Expenses:
Operating expenses	24,911	24,749	48,981	46,426
Supply and other revenue
Net revenue:
Total net revenue	81,665	76,186	157,273	144,863
Operating Expenses:
Operating expenses	$ 40,554	$ 42,106	$ 76,770	$ 79,372

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 30,159	$ 37,749	$ 34,420	$ 67,498
Other comprehensive income:
Foreign currency translation adjustments	(2,676)	6,165	(18,583)	17,516
Unrealized (loss) gain from cash flow hedges, net of tax expense (benefit) of $7, ($19), $22, ($21), respectively	(865)	222	(1,482)	22
Actuarial (loss) gain of defined pension plan, net of tax expense of $0	(2)	(4)	(10)	12
Other comprehensive (loss) income, net	(3,543)	6,383	(20,075)	17,550
Total comprehensive income	26,616	44,132	14,345	85,048
Comprehensive income attributable to non-controlling interests	0	14	0	13
Comprehensive income attributable to Driven Brands Holdings Inc.	$ 26,616	$ 44,118	$ 14,345	$ 85,035

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Statement of Comprehensive Income [Abstract]
Unrealized (loss) gain from cash flow hedges, tax (benefit) expense	$ 7	$ (19)	$ 22	$ (21)
Actuarial (loss) gain of defined pension plan, tax expense	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Current assets:
Cash and cash equivalents	$ 148,814	$ 176,522
Restricted cash	4,414	657
Accounts and notes receivable, net	195,327	151,259
Inventory	70,527	83,171
Prepaid and other assets	44,426	46,714
Income tax receivable	13,893	15,928
Assets held for sale	237,183	301,229
Advertising fund assets, restricted	43,039	45,627
Total current assets	757,623	821,107
Other assets	103,746	56,565
Property and equipment, net	1,422,961	1,438,496
Operating lease right-of-use assets	1,378,264	1,389,316
Deferred commissions	6,740	6,312
Intangibles, net	721,691	739,402
Goodwill	1,431,555	1,455,946
Deferred tax assets	3,627	3,660
Total assets	5,826,207	5,910,804
Current liabilities:
Accounts payable	72,118	67,526
Accrued expenses and other liabilities	236,586	242,171
Income tax payable	2,053	5,404
Current portion of long-term debt	33,332	32,673
Income tax receivable liability	0	56,001
Advertising fund liabilities	15,115	23,392
Total current liabilities	359,204	427,167
Long-term debt	2,855,823	2,910,812
Deferred tax liabilities	157,271	154,742
Operating lease liabilities	1,317,342	1,332,519
Income tax receivable liability	133,623	117,915
Deferred revenue	31,472	30,507
Long-term accrued expenses and other liabilities	28,682	30,419
Total liabilities	4,883,417	5,004,081
Commitments and contingencies (Note 12)
Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.01 par value, 900,000,000 shares authorized: and 164,082,430 and 163,965,231 shares outstanding; respectively	1,641	1,640
Additional paid-in capital	1,674,766	1,652,401
Accumulated deficit	(675,667)	(710,087)
Accumulated other comprehensive loss	(57,950)	(37,875)
Total shareholders’ equity attributable to Driven Brands Holdings Inc.	942,790	906,079
Non-controlling interests	0	644
Total shareholders' equity	942,790	906,723
Total liabilities and shareholders' equity	$ 5,826,207	$ 5,910,804

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 29, 2024	Dec. 30, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	164,082,430	163,965,231

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	(Accumulated deficit) retained earnings	Accumulated other comprehensive loss	Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2022		167,404,047
Beginning balance at Dec. 31, 2022		$ 1,674	$ 1,628,904	$ 84,795	$ (62,435)	$ 631
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued relating to Employee Stock Purchase Plan (in shares)		26,358
Stock issued relating to Employee Stock Purchase Plan			612
Shares issued for exercise/vesting of share-based compensation awards (in shares)		178,303
Shares issued for exercise/vesting of share-based compensation awards		$ 2
Forfeiture of restricted stock awards (in shares)		(242,147)
Forfeiture of restricted stock awards		$ (2)
Share-based compensation expense			7,049
Exercise of stock options			1,500
Tax obligations for share-based compensation			(120)
Net income	$ 67,498			67,498
Other comprehensive (loss) income	17,550				17,537	13
Ending balance (in shares) at Jul. 01, 2023		167,366,561
Ending balance at Jul. 01, 2023	1,747,658	$ 1,674	1,637,945	152,293	(44,898)	644
Beginning balance (in shares) at Apr. 01, 2023		167,560,449
Beginning balance at Apr. 01, 2023		$ 1,675	1,633,460	114,544	(51,267)	630
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for exercise/vesting of share-based compensation awards (in shares)		48,259
Shares issued for exercise/vesting of share-based compensation awards		$ 1
Forfeiture of restricted stock awards (in shares)		(242,147)
Forfeiture of restricted stock awards		$ (2)
Share-based compensation expense			4,485
Net income	37,749			37,749
Other comprehensive (loss) income	6,383				6,369	14
Ending balance (in shares) at Jul. 01, 2023		167,366,561
Ending balance at Jul. 01, 2023	$ 1,747,658	$ 1,674	1,637,945	152,293	(44,898)	644
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock (in shares)	0
Preferred stock	$ 0
Preferred stock (in shares)	0
Beginning balance (in shares) at Dec. 30, 2023	163,965,231	163,965,231
Beginning balance at Dec. 30, 2023	$ 906,723	$ 1,640	1,652,401	(710,087)	(37,875)	644
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued relating to Employee Stock Purchase Plan (in shares)		43,764
Stock issued relating to Employee Stock Purchase Plan			502
Shares issued for exercise/vesting of share-based compensation awards (in shares)		173,021
Shares issued for exercise/vesting of share-based compensation awards		$ 2
Forfeiture of restricted stock awards (in shares)		(99,586)
Forfeiture of restricted stock awards		$ (1)
Share-based compensation expense			22,843
Tax obligations for share-based compensation			(980)
Net income	34,420			34,420
Other comprehensive (loss) income	$ (20,075)				(20,075)
Acquisition of non-controlling interest						(644)
Ending balance (in shares) at Jun. 29, 2024	164,082,430	164,082,430
Ending balance at Jun. 29, 2024	$ 942,790	$ 1,641	1,674,766	(675,667)	(57,950)	0
Beginning balance (in shares) at Mar. 30, 2024		164,079,581
Beginning balance at Mar. 30, 2024		$ 1,641	1,664,764	(705,826)	(54,407)	644
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for exercise/vesting of share-based compensation awards (in shares)		2,849
Share-based compensation expense			10,982
Tax obligations for share-based compensation			(980)
Net income	30,159			30,159
Other comprehensive (loss) income	$ (3,543)				(3,543)
Acquisition of non-controlling interest						(644)
Ending balance (in shares) at Jun. 29, 2024	164,082,430	164,082,430
Ending balance at Jun. 29, 2024	$ 942,790	$ 1,641	$ 1,674,766	$ (675,667)	$ (57,950)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock (in shares)	0
Preferred stock	$ 0

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares	Jun. 29, 2024	Dec. 30, 2023	Jul. 01, 2023
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Statement of Cash Flows [Abstract]
Net income	$ 34,420	$ 67,498
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	87,862	83,617
Share-based compensation expense	22,843	7,049
Loss (gain) on foreign denominated transactions	9,923	(1,723)
Gain on foreign currency derivatives	(4,921)	(1,254)
Gain on sale and disposal of businesses, fixed assets, and sale leaseback transactions	(16,359)	(12,230)
Reclassification of interest rate hedge to income	(1,044)	(1,039)
Bad debt expense	1,738	602
Asset impairment charges and lease terminations	31,823	6,211
Amortization of deferred financing costs and bond discounts	4,933	4,343
Amortization of cloud computing	2,414	0
Provision for deferred income taxes	5,036	18,812
Other, net	7,322	9,641
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable, net	(47,245)	(30,373)
Inventory	11,310	(11,108)
Prepaid and other assets	7,986	(7,894)
Advertising fund assets and liabilities, restricted	(12,220)	(8,768)
Other assets	(47,699)	(25,456)
Deferred commissions	(428)	330
Deferred revenue	971	1,585
Accounts payable	3,968	16,231
Accrued expenses and other liabilities	8,022	(1,171)
Income tax receivable	(3,431)	(320)
Cash provided by operating activities	107,224	114,583
Cash flows from investing activities:
Capital expenditures	(155,920)	(320,071)
Cash used in business acquisitions, net of cash acquired	(2,759)	(44,868)
Proceeds from sale leaseback transactions	11,808	143,622
Proceeds from sale or disposal of businesses and fixed assets	112,845	217
Cash used in investing activities	(34,026)	(221,100)
Cash flows from financing activities:
Payment of debt extinguishment and issuance costs	(871)	0
Repayment of long-term debt	(34,005)	(13,961)
Proceeds from revolving lines of credit and short-term debt	46,000	230,000
Repayment of revolving lines of credit and short-term debt	(71,000)	(120,000)
Repayment of principal portion of finance lease liability	(2,199)	(1,889)
Payment of Tax Receivable Agreement	(38,362)	0
Acquisition of non-controlling interest	(644)	0
Purchase of common stock	(2)	(716)
Tax obligations for share-based compensation	(980)	0
Stock option exercises	0	1,758
Other, net	0	(64)
Cash (used in) provided by financing activities	(102,063)	95,128
Effect of exchange rate changes on cash	(1,615)	2,087
Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted	(30,480)	(9,302)
Cash and cash equivalents, beginning of period	176,522	227,110
Cash included in advertising fund assets, restricted, beginning of period	38,537	32,871
Restricted cash, beginning of period	657	792
Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period	215,716	260,773
Cash and cash equivalents, end of period	148,814	212,123
Cash included in advertising fund assets, restricted, end of period	32,008	38,691
Restricted cash, end of period	4,414	657
Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period	185,236	251,471
Supplemental cash flow disclosures - non-cash items:
Capital expenditures included in accrued expenses and other liabilities	17,891	43,191
Deferred consideration included in accrued expenses and other liabilities	1,948	16,129
Supplemental cash flow disclosures - cash paid for:
Interest	72,561	78,955
Income taxes	$ 20,338	$ 13,614

Description of Business

Description of Business	6 Months Ended
	Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Description of Business Driven Brands Holdings Inc. together with its subsidiaries (collectively, the “Company”) is a Delaware corporation and is the parent holding company of Driven Brands, Inc. and Shine Holdco (UK) Limited (collectively, “Driven Brands”). Driven Brands is the largest automotive services company in North America with a growing and highly-franchised base of more than 5,000 franchised, independently-operated, and company-operated locations across 49 U.S. states and 13 other countries. The Company has a portfolio of highly recognized brands, including Take 5 Oil Change ® , Take 5 Car Wash ® , Meineke Car Care Centers ® , MAACO ® , CARSTAR ® , Auto Glass Now ® , and 1-800-Radiator & A/C ® that compete in the automotive services industry. Tax Receivable Agreement

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Fiscal Year The Company operates and reports financial information on a 52- or 53-week year with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The three and six months ended June 29, 2024 and July 1, 2023 each consisted of 13 weeks and 26 weeks, respectively. The Car Wash segment is consolidated based on a calendar month end. Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited interim financial data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results of operations, balance sheet, cash flows, and shareholders’/members’ equity for the interim periods presented. The adjustments include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 30, 2023. Certain information and note disclosures normally included in the unaudited financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of operations for the three and six months ended June 29, 2024 may not be indicative of the results to be expected for any other interim period or the year ending December 28, 2024. The six months ended June 29, 2024 includes an adjustment to the unaudited consolidated balance sheet and consolidated statement of operations that originated in the prior year. The adjustment decreased both current assets and selling, general, and administrative expenses by $3.7 million. The Company evaluated the materiality of the adjustment on prior period financial statements, recorded the adjustment in the current period, and concluded the effect of the adjustment was immaterial to both the current and prior financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and the related notes to the consolidated financial statements. Significant items that are subject to estimates and assumptions include, but are not limited to, valuation of intangible assets and goodwill; income taxes; allowances for credit losses; valuation of derivatives; self-insurance claims; and share-based compensation. Management evaluates its estimates on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on historical experience, current conditions, and various other additional information, may affect amounts reported in future periods. Actual results could differ due to uncertainty inherent in the nature of these estimates. Fair Value of Financial Instruments Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or Level 3: Unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Financial assets and liabilities measured at fair value on a recurring basis as of June 29, 2024 and December 30, 2023 are summarized as follows: Items Measured at Fair Value at June 29, 2024 (in thousands) Level 1 Level 2 Total Derivative assets, recorded in other assets $ — $ 2,562 $ 2,562 Derivative liabilities, recorded in accrued expenses and other liabilities — 150 150 Items Measured at Fair Value at December 30, 2023 (in thousands) Level 1 Level 2 Total Derivative assets, recorded in other assets $ — $ 285 $ 285 Derivative liabilities, recorded in accrued expenses and other liabilities — 493 493 The carrying value and estimated fair value of total long-term debt were as follows: June 29, 2024 December 30, 2023 (in thousands) Carrying value Estimated fair value Carrying value Estimated fair value Long-term debt $ 2,919,641 $ 2,781,613 $ 2,977,996 $ 2,800,011 Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The standard enhances segment disclosure requirements of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) to assist in understanding how segment expenses and operating results are evaluated. The new standard does not change the definition or aggregation of operating segments. The standard also expands the interim disclosure requirements on a retrospective basis. This ASU is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU improves the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the tax rate reconciliation as well as disaggregation of income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 29, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures The Company strategically acquires companies and assets to increase its footprint and offer products and services that diversify its existing offerings, primarily through asset purchase agreements. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their fair values as of the date of the acquisition with the remaining amount recorded in goodwill. 2024 Acquisitions The Company completed one acquisition within the Maintenance segment and one acquisition in the international car wash business within the Car Wash segment during the six months ended June 29, 2024, representing two sites and one site, respectively, for an aggregate cash consideration, net of cash acquired and liabilities assumed, of less than $2 million. 2023 Acquisitions The Company completed three acquisitions within the Maintenance segment during the six months ended July 1, 2023, representing three sites. The aggregate cash consideration for these acquisitions, net of cash acquired and liabilities assumed, was approximately $6 million. The Company completed two acquisitions within the Car Wash segment during the six months ended July 1, 2023, representing three sites. The aggregate cash consideration for these acquisitions, net of cash acquired and liabilities assumed, was approximately $15 million. The Company completed two acquisitions in the Paint, Collision & Glass segment during the six months ended July 1, 2023, representing two sites. The aggregate cash consideration for these acquisitions, net of cash acquired and liabilities assumed, was approximately $6 million. The Company estimated the fair value of acquired assets and liabilities as of the date of acquisition based on information currently available. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. The provisional amounts for assets acquired and liabilities assumed for the 2023 acquisitions are as follows: 2023 Maintenance Segment (in thousands) Maintenance Assets: Operating lease right-of-use assets $ 658 Property and equipment, net 3,705 Assets acquired 4,363 Liabilities: Accrued expenses and other liabilities 20 Operating lease liabilities 641 Total liabilities assumed 661 Cash consideration, net of cash acquired 5,862 Deferred consideration 285 Total consideration, net of cash acquired $ 6,147 Goodwill $ 2,445 2023 Car Wash Segment (in thousands) Car Wash Assets: Property and equipment, net $ 11,052 Assets acquired 11,052 Total consideration, net of cash acquired $ 15,000 Goodwill $ 3,948 2023 Paint, Collision & Glass Segment (in thousands) Paint, Collision & Glass Assets: Inventory $ 35 Property and equipment, net 667 Assets acquired 702 Cash consideration, net of cash acquired 4,947 Deferred consideration 695 Total Consideration, net of cash acquired $ 5,642 Goodwill $ 4,940 Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of synergies within the existing segments and intangible assets that do not qualify for separate recognition. Goodwill, which was allocated to the Maintenance, Car Wash, and Paint, Collision & Glass segments, is substantially all deductible for income tax purposes. Deferred Consideration and Transaction Costs Deferred consideration is typically paid six months to one-year after the acquisition closing date once all conditions under the purchase agreement have been satisfied. The Company had $2 million and $16 million of deferred consideration related to acquisitions as of June 29, 2024 and July 1, 2023, respectively. The Company paid $2 million and $20 million of deferred consideration related to prior acquisitions during the six months ended June 29, 2024 and July 1, 2023, respectively. Deferred consideration is recorded within investing activities at the time of payment. The Company incurred less than $1 million of transaction costs during each of the three and six months ended June 29, 2024 and July 1, 2023. Divestitures

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 29, 2024
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers The Company records contract assets for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year and if such costs are material. Commission expenses, a primary cost associated with the sale of franchise licenses, are amortized to selling, general, and administrative expenses in the unaudited consolidated statements of operations ratably over the life of the associated franchise agreement. Capitalized costs to obtain a contract as of June 29, 2024 and December 30, 2023 were $7 million and $6 million, respectively, and are presented within deferred commissions on the consolidated balance sheets. The Company recognized less than $1 million of costs during the three and six months ended months ended June 29, 2024 and July 1, 2023, respectively, that were recorded as a contract asset at the beginning of the periods.

Segment Information

Segment Information	6 Months Ended
	Jun. 29, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information The Company’s worldwide operations are comprised of the following reportable segments: Maintenance, Car Wash, Paint, Collision & Glass, and Platform Services. In addition to the reportable segments, the Company’s consolidated financial results include “Corporate and Other” activity. Corporate and Other incurs costs related to the advertising revenu es and expenses and shared service costs, which are related to finance, IT, human resources, legal, supply chain, and other support services. Corporate and Other activity includes the adjustments necessary to eliminate certain intercompany transactions, namely sales by the Platform Services segment to the Paint, Collision & Glass and Maintenance segments. Segment results for the three and six months ended June 29, 2024 and July 1, 2023 are as follows: Three Months Ended June 29, 2024 (in thousands) Maintenance Car Wash Paint, Platform Corporate Total Franchise royalties and fees $ 16,764 $ — $ 24,475 $ 8,790 $ — $ 50,029 Company-operated store sales 230,809 95,211 67,523 1,138 — 394,681 Independently-operated store sales — 60,280 — — — 60,280 Advertising fund contributions — — — — 24,911 24,911 Supply and other revenue 30,350 1,412 20,027 51,314 (21,438) 81,665 Total revenue $ 277,923 $ 156,903 $ 112,025 $ 61,242 $ 3,473 $ 611,566 Segment Adjusted EBITDA $ 102,935 $ 33,772 $ 35,172 $ 25,311 $ (44,032) $ 153,158 Three Months Ended July 1, 2023 (in thousands) Maintenance Car Wash Paint, Platform Corporate Total Franchise royalties and fees $ 14,215 $ — $ 26,530 $ 9,060 $ — $ 49,805 Company-operated store sales 205,673 101,615 86,110 1,180 — 394,578 Independently-operated store sales — 61,533 — — — 61,533 Advertising fund contributions — — — — 24,749 24,749 Supply and other revenue 22,439 1,607 20,518 47,098 (15,476) 76,186 Total revenue $ 242,327 $ 164,755 $ 133,158 $ 57,338 $ 9,273 $ 606,851 Segment Adjusted EBITDA $ 84,812 $ 39,761 $ 41,057 $ 22,519 $ (40,402) $ 147,747 Six Months Ended June 29, 2024 (in thousands) Maintenance Car Wash Paint, Platform Services Corporate Total Franchise royalties and fees $ 31,218 $ — $ 49,107 $ 14,749 $ — $ 95,074 Company-operated store sales 451,680 185,438 130,032 1,987 — 769,137 Independently-operated store sales — 113,327 — — — 113,327 Advertising fund contributions — — — — 48,981 48,981 Supply and other revenue 56,738 2,860 39,274 98,331 (39,930) 157,273 Total net revenue $ 539,636 $ 301,625 $ 218,413 $ 115,067 $ 9,051 $ 1,183,792 Segment Adjusted EBITDA $ 194,371 $ 62,906 $ 65,992 $ 45,182 $ (83,012) $ 285,439 Six Months Ended July 1, 2023 (in thousands) Maintenance Car Wash Paint, Platform Corporate Total Franchise royalties and fees $ 26,658 $ — $ 50,828 $ 15,834 $ — $ 93,320 Company-operated store sales 400,933 204,061 163,589 2,061 — 770,644 Independently-operated store sales — 114,065 — — — 114,065 Advertising fund contributions — — — — 46,426 46,426 Supply and other revenue 42,404 3,609 39,544 91,476 (32,170) 144,863 Total net revenue $ 469,995 $ 321,735 $ 253,961 $ 109,371 $ 14,256 $ 1,169,318 Segment Adjusted EBITDA $ 157,045 $ 80,809 $ 76,507 $ 39,527 $ (81,653) $272,235 The reconciliations of Income before taxes to Segment Adjusted EBITDA for the three and six months ended June 29, 2024 and July 1, 2023 are as follows: Three Months Ended Six Months Ended (in thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Income before taxes $ 48,030 $ 58,024 $ 58,455 $ 98,744 Depreciation and amortization 44,633 45,419 87,862 83,617 Interest expense, net 31,796 40,871 75,568 79,012 Acquisition related costs (a) 271 3,750 2,065 5,597 Non-core items and project costs, net (b) 5,126 2,803 9,837 4,627 Store opening costs 940 1,377 2,203 2,402 Cloud computing amortization (c) 1,069 — 2,414 — Share-based compensation expense (d) 10,982 4,485 22,843 7,049 Foreign currency transaction loss (gain), net (e) 681 (1,302) 5,002 (2,977) Asset sale leaseback (gain) loss, impairment and closed store expenses (f) 9,630 (7,680) 19,190 (5,836) Segment Adjusted EBITDA $ 153,158 $ 147,747 $ 285,439 $ 272,235 (a) Consists of acquisition costs as reflected within the unaudited consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. We expect to incur similar costs in connection with other acquisitions in the future and, under GAAP, such costs relating to acquisitions are expensed as incurred. (b) Consists of discrete items and project costs, including third party consulting and professional fees associated with strategic transformation initiatives as well as non-recurring payroll-related costs. (c) Includes non-cash amortization expenses relating cloud computing arrangements. (d) Represents non-cash share-based compensation expense. (e) Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of our intercompany loans as well as gains and losses on cross currency swaps and forward contracts. (f) Relates to (gains) losses, net on sale leasebacks, impairment of certain fixed assets and operating lease right-of-use assets related to closed and underperforming locations, assets held for sale, and lease exit costs and other costs associated with stores that were closed prior to the respective lease termination dates. Refer to Note 6 for additional information.

Assets Held For Sale

Assets Held For Sale	6 Months Ended
	Jun. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Assets Held For Sale	Assets Held For Sale U.S. Car Wash During 2023, management performed a strategic review of the U.S. car wash operations, which included, but was not limited to, an evaluation of the following: store performance, the competitive landscape, revenue and expense optimization opportunities, and capital requirements. As a result of this strategic review, management approved the closure of 29 stores, halted the opening of new company-operated stores, and began marketing property and equipment for sale that will not be utilized by the Company. These actions resulted in the transfer of assets from property and equipment to assets held for sale during the third quarter of 2023. The changes in assets held for sale were as follows: (in thousands) Balance at December 30, 2023 $ 301,229 Additions 58,562 Impairments (29,765) Sales and disposals (92,843) Balance at June 29, 2024 $ 237,183 During the six months ending June 29, 2024, management continued to enhance properties included within held for sale resulting in an increase to assets held for sale of $59 million. Management evaluated the fair value for all assets included within assets held for sale, which resulted in an impairment of $12 million and $30 million for the three and six months ended June 29, 2024, respectively. In addition, during the six months ended June 29, 2024, the Company sold 30 locations resulting in a net gain of $5 million and $11 million for the three and six months ended June 29, 2024, respectively. The Company will continue to evaluate the fair value of assets held for sale, which may result in additional impairments based on unfavorable market conditions or other economic factors in the future.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 29, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The Company’s long-term debt obligations consist of the following: (in thousands) June 29, 2024 December 30, 2023 Series 2018-1 Securitization Senior Notes, Class A-2 $ 257,813 $ 259,188 Series 2019-1 Securitization Senior Notes, Class A-2 283,500 285,000 Series 2019-2 Securitization Senior Notes, Class A-2 261,938 263,313 Series 2020-1 Securitization Senior Notes, Class A-2 167,956 168,875 Series 2020-2 Securitization Senior Notes, Class A-2 434,250 436,500 Series 2021-1 Securitization Senior Notes, Class A-2 437,625 439,875 Series 2022-1 Securitization Senior Notes, Class A-2 358,613 360,438 Term Loan Facility 468,750 491,250 Revolving Credit Facility 223,000 248,000 Other debt (a) 26,196 25,557 Total debt 2,919,641 2,977,996 Less: unamortized debt issuance costs (30,486) (34,511) Less: current portion of long-term debt (33,332) (32,673) Total long-term debt, net $ 2,855,823 $ 2,910,812 (a) Consists primarily of finance lease obligations. Series 2019-3 Variable Funding Securitization Senior Notes In December 2019, Driven Brands Funding, LLC (the “Issuer”) issued Series 2019-3 Variable Funding Senior Notes, Class A-1 (the “2019 VFN”) in the revolving amount of $115 million. The 2019 VFN have a final legal maturity date in January 2050. The commitment under the 2019 VFN was set to expire in July 2022, with the option of three one-year extensions. In July 2023, the Company exercised the second of three one-year extension options. The 2019 VFN are secured by substantially all assets of the Issuer and are guaranteed by the Issuer and each of its respective subsidiaries. As of July 1, 2023, borrowings incur interest at the Base Rate plus an applicable margin or Secured Overnight Financing Rate (“SOFR”) plus an applicable term adjustment. No amounts were outstanding under the 2019 VFN as of June 29, 2024 and no borrowings or repayments were made during the six months ended June 29, 2024. As of June 29, 2024, there were $25 million of outstanding letters of credit which reduced the borrowing availability under the 2019 VFN. In July 2024, the 2019 VFN was refinanced with the 2024 VFN described below. 2022-1 Securitization Senior Notes In conjunction with the issuance of the 2022-1 Senior Notes, Driven Brands Funding, LLC and Driven Brands Canada Funding Corporation (together “the Co-Issuers”) also issued Series 2022-1 Class A-1 in the amount of $135 million, which can be accessed at the Co-Issuers’ option if certain conditions are met. 2024-1 Securitization Senior Notes In July 2024, the Co-Issuers issued $275 million of 2024-1 Securitization Senior Notes (the “2024-1 Senior Notes”) bearing a fixed interest rate of 6.372% per annum. The 2024-1 Senior Notes have a final legal maturity date in October 2054 and an anticipated repayment date in October 2031. The 2024-1 Senior Notes are secured by substantially all assets of the Co-Issuers and are guaranteed by the Co-Issuers and each of their respective subsidiaries. Proceeds from the 2024-1 Senior Notes were primarily used to repay the Company’s 2018-1 Senior Notes. Series 2024-1 Variable Funding Securitization Senior Notes In July 2024, the Co-Issuers issued Series 2024-1 Variable Funding Senior Notes, Class A-1 (the “2024 VFN”) in the revolving amount of $400 million. The 2024 VFN have a final legal maturity date in October 2054. The commitment under the 2024 VFN is set to expire in October 2029, with the option of two one-year extensions. The 2024 VFN are secured by substantially all assets of the Co-Issuers and are guaranteed by the Co-Issuers and each of their respective subsidiaries. Borrowings incur interest at the Base Rate plus an applicable margin or SOFR plus an applicable margin. As of August 8, 2024, there were no amounts outstanding under the 2024 VFN and $26 million of outstanding letters of credit which reduced the borrowing availability under the 2024 VFN. Driven Holdings Revolving Credit Facility In May 2021, Driven Holdings, LLC, (the “Borrower”) a Delaware limited liability company and indirect wholly-owned subsidiary of Driven Brands Holdings Inc., entered into a credit agreement to secure a revolving line of credit with a group of financial institutions (the “Revolving Credit Facility”), which provides for an aggregate amount of up to $300 million, and has a maturity date in May 2026 (the “Credit Agreement”). On June 2, 2023, the Credit Agreement was amended pursuant to which as of July 1, 2023, borrowings will incur interest at the Base Rate plus an applicable margin or SOFR plus an applicable term adjustment. The Revolving Credit Facility also includes periodic commitment fees based on the available unused balance and a quarterly administrative fee. There was $223 million outstanding on the Revolving Credit Facility as of June 29, 2024 with $46 million of borrowings and $71 million of repayments made during the six months ended June 29, 2024. The Company’s debt agreements are subject to certain quantitative and qualitative covenants. As of June 29, 2024, the Company and its subsidiaries were in material compliance with such covenants.

Leases

Leases	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Leases	Leases During the six months ended June 29, 2024, the Company sold eight maintenance properties in various locations throughout the U.S. for a total of $11 million. During the six months ended July 1, 2023, the Company sold four maintenance and 33 car wash properties in various locations throughout the U.S. for a total of $144 million. Concurrently with the closing of these sales, the Company entered into various operating lease agreements pursuant to which the Company leased back the properties. These lease agreements each have an initial term of 18 to 20 years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. The Company recorded an operating lease right-of-use asset and operating lease liability of $8 million and $8 million, respectively, as of June 29, 2024, and $112 million and $112 million, respectively, as of July 1, 2023 related to these lease arrangements. The Company recorded gains of $3 million for the three and six months ended June 29, 2024, and $22 million and $25 million for the three and six months ended July 1, 2023, respectively. Supplemental cash flow information related to the Company’s lease arrangements for the six months ended June 29, 2024 and July 1, 2023, respectively, was as follows: Six Months Ended (in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 84,415 $ 67,107 Operating cash flows used in finance leases 101 810 Financing cash flows used in finance leases 197 953
Leases	Leases During the six months ended June 29, 2024, the Company sold eight maintenance properties in various locations throughout the U.S. for a total of $11 million. During the six months ended July 1, 2023, the Company sold four maintenance and 33 car wash properties in various locations throughout the U.S. for a total of $144 million. Concurrently with the closing of these sales, the Company entered into various operating lease agreements pursuant to which the Company leased back the properties. These lease agreements each have an initial term of 18 to 20 years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. The Company recorded an operating lease right-of-use asset and operating lease liability of $8 million and $8 million, respectively, as of June 29, 2024, and $112 million and $112 million, respectively, as of July 1, 2023 related to these lease arrangements. The Company recorded gains of $3 million for the three and six months ended June 29, 2024, and $22 million and $25 million for the three and six months ended July 1, 2023, respectively. Supplemental cash flow information related to the Company’s lease arrangements for the six months ended June 29, 2024 and July 1, 2023, respectively, was as follows: Six Months Ended (in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 84,415 $ 67,107 Operating cash flows used in finance leases 101 810 Financing cash flows used in finance leases 197 953

Share-based Compensation

Share-based Compensation	6 Months Ended
	Jun. 29, 2024
Share-Based Payment Arrangement [Abstract]
Share-based Compensation	Share-based Compensation The Company granted new awards during the three months ended June 29, 2024, consisting of 19,207 restricted stock units (“RSUs”) and 19,214 performance stock units (“PSUs”). The Company granted new awards during the six months ended June 29, 2024 including 951,530 RSUs and 1,075,784 PSUs. Awards are eligible to vest provided that the employee remains in continuous service on each vesting date. The RSUs vest ratably each year on the anniversary date generally over a two The fair value of the total RSUs, performance-based PSUs, and market-based PSUs granted during the three months ended June 29, 2024 were less than $1 million each. The fair value of the total RSUs, performance-based PSUs, and market-based PSUs granted during the six months ended June 29, 2024 were $13 million, $9 million, and $8 million, respectively. The Company based the fair value of the RSUs and performance-based PSUs on the Company’s stock price on the grant date. The range of assumptions used for issued PSUs with a market condition valued using the Monte Carlo model were as follows: Six Months Ended June 29, 2024 July 1, 2023 Annual dividend yield —% —% Expected term (years) 2.6 - 2.8 2.6 - 2.8 Risk-free interest rate 4.48% - 4.65% 3.65% - 4.51% Expected volatility 49.2% - 51.1% 37.9% - 38.8% Correlation to the index peer group 46.9% - 49.2% 60.2% - 60.3% The Company recorded $11 million and $23 million of share-based compensation expense during the three and six months ended June 29, 2024, respectively, and $4 million and $7 million during the six months ended July 1, 2023, respectively, within selling, general, and administrative expenses on the unaudited consolidated statements of operations. The increase in share-based compensation expense primarily relates to the modification of pre-IPO awards in the fourth quarter of 2023.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 29, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The Company calculates basic and diluted earnings per share using the two-class method. The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders: Three Months Ended Six Months Ended (in thousands, except per share amounts) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Basic earnings per share: Net income $ 30,159 $ 37,749 $ 34,420 $ 67,498 Less: Net income attributable to participating securities, basic 638 794 729 1,420 Net income after participating securities, basic 29,521 36,955 33,691 66,078 Weighted-average common shares outstanding 159,795 162,911 159,713 162,848 Basic earnings per share $ 0.18 $ 0.23 $ 0.21 $ 0.41 Three Months Ended Six Months Ended (in thousands, except per share amounts) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Diluted earnings per share: Net income $ 30,159 $ 37,749 $ 34,420 $ 67,498 Less: Net income attributable to participating securities, diluted 120 708 138 1,267 Net income after participating securities, diluted $ 30,039 $ 37,041 $ 34,282 $ 66,231 Weighted-average common shares outstanding 159,795 162,911 159,713 162,848 Dilutive effect of share-based awards 970 3,977 970 4,034 Weighted-average common shares outstanding, as adjusted 160,765 166,888 160,683 166,882 Diluted earnings per share $ 0.18 $ 0.22 $ 0.21 $ 0.40 Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. In addition, the Company’s participating securities are related to certain restricted stock awards issued to Section 16 officers which include non-forfeitable dividend rights. The Company had performance awards that are contingent on performance conditions which have not yet been met and therefore were excluded from the computation of weighted average shares of 1,805,754 shares for the three and six months ended June 29, 2024 and 4,881,630 shares for the three and six months ended July 1, 2023. The following securities were not included in the computation of diluted shares outstanding because the effect would be antidilutive: Three Months Ended Six Months Ended Number of securities (in thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Restricted stock units 1,124 — 440 — Stock Options 1,740 1,703 1,740 1,703 Total 2,864 1,703 2,180 1,703

Income Taxes

Income Taxes	6 Months Ended
	Jun. 29, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s tax provision is comprised of the most recent estimated annual effective tax rate applied to year-to-date ordinary income before taxes. The tax impacts of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are recorded discretely in the interim period in which they occur. Income tax expense was $18 million for the three months ended June 29, 2024 compared to $20 million for the three months ended July 1, 2023. The effective income tax rate for the three months ended June 29, 2024 was 37.2% compared to 34.9% for the three months ended July 1, 2023. The net decrease in income tax expense and increase in effective tax rate for the three months ended June 29, 2024 was primarily driven by the asset impairment charges and non-deductible share-based compensation expense. Income tax expense was $24 million for the six months ended June 29, 2024 compared to an income tax expense of $31 million for the six months ended July 1, 2023. The effective tax rate for the six months ended June 29, 2024 was 41.1% compared to 31.6% for the six months ended July 1, 2023. The net decrease in income tax expense and increase in effective tax rate for the six months ended June 29, 2024 was primarily driven by asset impairment charges and non-deductible share-based compensation expense.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 29, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to various lawsuits, administrative proceedings, audits, and claims. Some of these lawsuits purport to be class actions and/or seek substantial damages. We are required to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Management regularly assesses our insurance deductibles, analyzes litigation information with our attorneys, and evaluates our loss experience in connection with pending legal proceedings. We record our best estimate of a loss when the loss is considered probable and the amount of such loss can be reasonably estimated. When a loss is probable and there is a range of estimated loss with no best estimate within the range, we record the minimum estimated liability related to the lawsuit or claim. As additional information becomes available, we reassess the potential liability and revise our accruals, if necessary. Legal fees and expenses associated with the defense of all of our litigation are expensed as such fees and expenses are incurred. Because of uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ materially from our estimates. Genesee County Employees’ Retirement System v. Driven Brands Holdings Inc., et al. – On December 22, 2023, Genesee County Employees’ Retirement System filed a putative class action lawsuit in the U.S. District Court for the Western District of North Carolina (the “Court”) against the Company as well as a current and a former Company executive (the “Individual Defendants”) alleging violations of Section 10(b) and Rule 10b-5 of the Exchange Act by the Company, as well as violations of Section 20(a) of the Exchange Act by the Individual Defendants. Genesee County Employees’ Retirement System, Oakland County Employees’ Retirement System, and Oakland County Voluntary Employees’ Beneficiary Association (collectively the “Michigan Funds”) moved for appointment as lead plaintiffs and for Bernstein Litowitz Berger & Grossmann LLP to be appointed as lead counsel for the purported class. The Michigan Funds purport to represent a class of stockholders who purchased Company shares between October 27, 2021 and August 1, 2023. On March 5, 2024, the Michigan Funds filed a notice of unopposed motion asking the Court to grant their prior motion to appoint them as lead plaintiffs. On May 31, 2024, the Court granted the Michigan Funds’ motion. The Company disputes the allegations of wrongdoing and intends to vigorously defend against the action. No assessment as to the likelihood or range of any potential adverse outcome has been made as of the date of this filing. Other than the matter described above, as of June 29, 2024, there are no current proceedings or litigation matters involving the Company or its property that we believe would have a material adverse effect on our consolidated financial position or cash flows, although they could have a material adverse effect on our operating results for a particular reporting period.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 30,159	$ 37,749	$ 34,420	$ 67,498

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 29, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Fiscal Year	Fiscal Year The Company operates and reports financial information on a 52- or 53-week year with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The three and six months ended June 29, 2024 and July 1, 2023 each consisted of 13 weeks and 26 weeks, respectively. The Car Wash segment is consolidated based on a calendar month end.
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited interim financial data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results of operations, balance sheet, cash flows, and shareholders’/members’ equity for the interim periods presented. The adjustments include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 30, 2023. Certain information and note disclosures normally included in the unaudited financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of operations for the three and six months ended June 29, 2024 may not be indicative of the results to be expected for any other interim period or the year ending December 28, 2024. The six months ended June 29, 2024 includes an adjustment to the unaudited consolidated balance sheet and consolidated statement of operations that originated in the prior year. The adjustment decreased both current assets and selling, general, and administrative expenses by $3.7 million. The Company evaluated the materiality of the adjustment on prior period financial statements, recorded the adjustment in the current period, and concluded the effect of the adjustment was immaterial to both the current and prior financial statements.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and the related notes to the consolidated financial statements. Significant items that are subject to estimates and assumptions include, but are not limited to, valuation of intangible assets and goodwill; income taxes; allowances for credit losses; valuation of derivatives; self-insurance claims; and share-based compensation. Management evaluates its estimates on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on historical experience, current conditions, and various other additional information, may affect amounts reported in future periods. Actual results could differ due to uncertainty inherent in the nature of these estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or Level 3: Unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The standard enhances segment disclosure requirements of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) to assist in understanding how segment expenses and operating results are evaluated. The new standard does not change the definition or aggregation of operating segments. The standard also expands the interim disclosure requirements on a retrospective basis. This ASU is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU improves the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the tax rate reconciliation as well as disaggregation of income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	Financial assets and liabilities measured at fair value on a recurring basis as of June 29, 2024 and December 30, 2023 are summarized as follows: Items Measured at Fair Value at June 29, 2024 (in thousands) Level 1 Level 2 Total Derivative assets, recorded in other assets $ — $ 2,562 $ 2,562 Derivative liabilities, recorded in accrued expenses and other liabilities — 150 150 Items Measured at Fair Value at December 30, 2023 (in thousands) Level 1 Level 2 Total Derivative assets, recorded in other assets $ — $ 285 $ 285 Derivative liabilities, recorded in accrued expenses and other liabilities — 493 493
Schedule of Carrying Value and Estimated Fair Value of Total Long-Term Debt	The carrying value and estimated fair value of total long-term debt were as follows: June 29, 2024 December 30, 2023 (in thousands) Carrying value Estimated fair value Carrying value Estimated fair value Long-term debt $ 2,919,641 $ 2,781,613 $ 2,977,996 $ 2,800,011

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 29, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Estimated Purchase Price Allocation	The provisional amounts for assets acquired and liabilities assumed for the 2023 acquisitions are as follows: 2023 Maintenance Segment (in thousands) Maintenance Assets: Operating lease right-of-use assets $ 658 Property and equipment, net 3,705 Assets acquired 4,363 Liabilities: Accrued expenses and other liabilities 20 Operating lease liabilities 641 Total liabilities assumed 661 Cash consideration, net of cash acquired 5,862 Deferred consideration 285 Total consideration, net of cash acquired $ 6,147 Goodwill $ 2,445 2023 Car Wash Segment (in thousands) Car Wash Assets: Property and equipment, net $ 11,052 Assets acquired 11,052 Total consideration, net of cash acquired $ 15,000 Goodwill $ 3,948 2023 Paint, Collision & Glass Segment (in thousands) Paint, Collision & Glass Assets: Inventory $ 35 Property and equipment, net 667 Assets acquired 702 Cash consideration, net of cash acquired 4,947 Deferred consideration 695 Total Consideration, net of cash acquired $ 5,642 Goodwill $ 4,940

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 29, 2024
Segment Reporting [Abstract]
Schedule of Segment Results	Segment results for the three and six months ended June 29, 2024 and July 1, 2023 are as follows: Three Months Ended June 29, 2024 (in thousands) Maintenance Car Wash Paint, Platform Corporate Total Franchise royalties and fees $ 16,764 $ — $ 24,475 $ 8,790 $ — $ 50,029 Company-operated store sales 230,809 95,211 67,523 1,138 — 394,681 Independently-operated store sales — 60,280 — — — 60,280 Advertising fund contributions — — — — 24,911 24,911 Supply and other revenue 30,350 1,412 20,027 51,314 (21,438) 81,665 Total revenue $ 277,923 $ 156,903 $ 112,025 $ 61,242 $ 3,473 $ 611,566 Segment Adjusted EBITDA $ 102,935 $ 33,772 $ 35,172 $ 25,311 $ (44,032) $ 153,158 Three Months Ended July 1, 2023 (in thousands) Maintenance Car Wash Paint, Platform Corporate Total Franchise royalties and fees $ 14,215 $ — $ 26,530 $ 9,060 $ — $ 49,805 Company-operated store sales 205,673 101,615 86,110 1,180 — 394,578 Independently-operated store sales — 61,533 — — — 61,533 Advertising fund contributions — — — — 24,749 24,749 Supply and other revenue 22,439 1,607 20,518 47,098 (15,476) 76,186 Total revenue $ 242,327 $ 164,755 $ 133,158 $ 57,338 $ 9,273 $ 606,851 Segment Adjusted EBITDA $ 84,812 $ 39,761 $ 41,057 $ 22,519 $ (40,402) $ 147,747 Six Months Ended June 29, 2024 (in thousands) Maintenance Car Wash Paint, Platform Services Corporate Total Franchise royalties and fees $ 31,218 $ — $ 49,107 $ 14,749 $ — $ 95,074 Company-operated store sales 451,680 185,438 130,032 1,987 — 769,137 Independently-operated store sales — 113,327 — — — 113,327 Advertising fund contributions — — — — 48,981 48,981 Supply and other revenue 56,738 2,860 39,274 98,331 (39,930) 157,273 Total net revenue $ 539,636 $ 301,625 $ 218,413 $ 115,067 $ 9,051 $ 1,183,792 Segment Adjusted EBITDA $ 194,371 $ 62,906 $ 65,992 $ 45,182 $ (83,012) $ 285,439 Six Months Ended July 1, 2023 (in thousands) Maintenance Car Wash Paint, Platform Corporate Total Franchise royalties and fees $ 26,658 $ — $ 50,828 $ 15,834 $ — $ 93,320 Company-operated store sales 400,933 204,061 163,589 2,061 — 770,644 Independently-operated store sales — 114,065 — — — 114,065 Advertising fund contributions — — — — 46,426 46,426 Supply and other revenue 42,404 3,609 39,544 91,476 (32,170) 144,863 Total net revenue $ 469,995 $ 321,735 $ 253,961 $ 109,371 $ 14,256 $ 1,169,318 Segment Adjusted EBITDA $ 157,045 $ 80,809 $ 76,507 $ 39,527 $ (81,653) $272,235
Schedule of Reconciliation of Segment Adjusted EBITDA to income Before Taxes	The reconciliations of Income before taxes to Segment Adjusted EBITDA for the three and six months ended June 29, 2024 and July 1, 2023 are as follows: Three Months Ended Six Months Ended (in thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Income before taxes $ 48,030 $ 58,024 $ 58,455 $ 98,744 Depreciation and amortization 44,633 45,419 87,862 83,617 Interest expense, net 31,796 40,871 75,568 79,012 Acquisition related costs (a) 271 3,750 2,065 5,597 Non-core items and project costs, net (b) 5,126 2,803 9,837 4,627 Store opening costs 940 1,377 2,203 2,402 Cloud computing amortization (c) 1,069 — 2,414 — Share-based compensation expense (d) 10,982 4,485 22,843 7,049 Foreign currency transaction loss (gain), net (e) 681 (1,302) 5,002 (2,977) Asset sale leaseback (gain) loss, impairment and closed store expenses (f) 9,630 (7,680) 19,190 (5,836) Segment Adjusted EBITDA $ 153,158 $ 147,747 $ 285,439 $ 272,235 (a) Consists of acquisition costs as reflected within the unaudited consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. We expect to incur similar costs in connection with other acquisitions in the future and, under GAAP, such costs relating to acquisitions are expensed as incurred. (b) Consists of discrete items and project costs, including third party consulting and professional fees associated with strategic transformation initiatives as well as non-recurring payroll-related costs. (c) Includes non-cash amortization expenses relating cloud computing arrangements. (d) Represents non-cash share-based compensation expense. (e) Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of our intercompany loans as well as gains and losses on cross currency swaps and forward contracts. (f) Relates to (gains) losses, net on sale leasebacks, impairment of certain fixed assets and operating lease right-of-use assets related to closed and underperforming locations, assets held for sale, and lease exit costs and other costs associated with stores that were closed prior to the respective lease termination dates. Refer to Note 6 for additional information.

Assets Held For Sale (Tables)

Assets Held For Sale (Tables)	6 Months Ended
	Jun. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Assets Held-for-Sale	The changes in assets held for sale were as follows: (in thousands) Balance at December 30, 2023 $ 301,229 Additions 58,562 Impairments (29,765) Sales and disposals (92,843) Balance at June 29, 2024 $ 237,183

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 29, 2024
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Obligations	The Company’s long-term debt obligations consist of the following: (in thousands) June 29, 2024 December 30, 2023 Series 2018-1 Securitization Senior Notes, Class A-2 $ 257,813 $ 259,188 Series 2019-1 Securitization Senior Notes, Class A-2 283,500 285,000 Series 2019-2 Securitization Senior Notes, Class A-2 261,938 263,313 Series 2020-1 Securitization Senior Notes, Class A-2 167,956 168,875 Series 2020-2 Securitization Senior Notes, Class A-2 434,250 436,500 Series 2021-1 Securitization Senior Notes, Class A-2 437,625 439,875 Series 2022-1 Securitization Senior Notes, Class A-2 358,613 360,438 Term Loan Facility 468,750 491,250 Revolving Credit Facility 223,000 248,000 Other debt (a) 26,196 25,557 Total debt 2,919,641 2,977,996 Less: unamortized debt issuance costs (30,486) (34,511) Less: current portion of long-term debt (33,332) (32,673) Total long-term debt, net $ 2,855,823 $ 2,910,812 (a)

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Schedule of Cash Flow Related to Lease Arrangements	Supplemental cash flow information related to the Company’s lease arrangements for the six months ended June 29, 2024 and July 1, 2023, respectively, was as follows: Six Months Ended (in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 84,415 $ 67,107 Operating cash flows used in finance leases 101 810 Financing cash flows used in finance leases 197 953

Share-based Compensation (Table

Share-based Compensation (Tables)	6 Months Ended
	Jun. 29, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Valuation Assumptions	The range of assumptions used for issued PSUs with a market condition valued using the Monte Carlo model were as follows: Six Months Ended June 29, 2024 July 1, 2023 Annual dividend yield —% —% Expected term (years) 2.6 - 2.8 2.6 - 2.8 Risk-free interest rate 4.48% - 4.65% 3.65% - 4.51% Expected volatility 49.2% - 51.1% 37.9% - 38.8% Correlation to the index peer group 46.9% - 49.2% 60.2% - 60.3%

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 29, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings (Loss) Per Share Attributable to Common Shareholders	The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders: Three Months Ended Six Months Ended (in thousands, except per share amounts) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Basic earnings per share: Net income $ 30,159 $ 37,749 $ 34,420 $ 67,498 Less: Net income attributable to participating securities, basic 638 794 729 1,420 Net income after participating securities, basic 29,521 36,955 33,691 66,078 Weighted-average common shares outstanding 159,795 162,911 159,713 162,848 Basic earnings per share $ 0.18 $ 0.23 $ 0.21 $ 0.41 Three Months Ended Six Months Ended (in thousands, except per share amounts) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Diluted earnings per share: Net income $ 30,159 $ 37,749 $ 34,420 $ 67,498 Less: Net income attributable to participating securities, diluted 120 708 138 1,267 Net income after participating securities, diluted $ 30,039 $ 37,041 $ 34,282 $ 66,231 Weighted-average common shares outstanding 159,795 162,911 159,713 162,848 Dilutive effect of share-based awards 970 3,977 970 4,034 Weighted-average common shares outstanding, as adjusted 160,765 166,888 160,683 166,882 Diluted earnings per share $ 0.18 $ 0.22 $ 0.21 $ 0.40
Schedule of Antidilutive Shares	The following securities were not included in the computation of diluted shares outstanding because the effect would be antidilutive: Three Months Ended Six Months Ended Number of securities (in thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Restricted stock units 1,124 — 440 — Stock Options 1,740 1,703 1,740 1,703 Total 2,864 1,703 2,180 1,703

Description of Business (Detail

Description of Business (Details) $ in Thousands	Jun. 29, 2024 USD ($) franchise_location state country	Jan. 31, 2024 USD ($)	Dec. 30, 2023 USD ($)	Jan. 14, 2021
Subsidiary, Sale of Stock [Line Items]
Number of locations franchised, independently-operated, and company-operated | franchise_location	5,000
Number of states in which entity operates | state	49
Number of countries across Europe in which entity operates | country	13
Income tax receivable liability, current	$ 0		$ 56,001
Income tax receivable liability, noncurrent	$ 133,623		$ 117,915
Initial payment		$ 38,000
Pre-IPO Stockholders
Subsidiary, Sale of Stock [Line Items]
Income taxes receivable (as a percent)				0.85

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Subsidiary, Sale of Stock [Line Items]
Selling, general, and administrative expenses	$ (121,123)	$ (96,815)	$ (237,525)	$ (209,143)
Current assets	(757,623)		(757,623)		$ (821,107)
Revision of Prior Period, Adjustment
Subsidiary, Sale of Stock [Line Items]
Selling, general, and administrative expenses			3,700
Current assets	$ 3,700		$ 3,700

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Other assets
Subsidiary, Sale of Stock [Line Items]
Derivative asset	$ 2,562	$ 285
Accrued expenses and other liabilities
Subsidiary, Sale of Stock [Line Items]
Derivative liabilities, recorded in accrued expenses and other liabilities	150	493
Level 1 | Other assets
Subsidiary, Sale of Stock [Line Items]
Derivative asset	0	0
Level 1 | Accrued expenses and other liabilities
Subsidiary, Sale of Stock [Line Items]
Derivative liabilities, recorded in accrued expenses and other liabilities	0	0
Level 2 | Other assets
Subsidiary, Sale of Stock [Line Items]
Derivative asset	2,562	285
Level 2 | Accrued expenses and other liabilities
Subsidiary, Sale of Stock [Line Items]
Derivative liabilities, recorded in accrued expenses and other liabilities	$ 150	$ 493

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Carrying Value and Estimated Fair Value of Total Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Carrying value
Subsidiary, Sale of Stock [Line Items]
Long-term debt	$ 2,919,641	$ 2,977,996
Estimated fair value
Subsidiary, Sale of Stock [Line Items]
Long-term debt	$ 2,781,613	$ 2,800,011

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024 USD ($)	Jul. 01, 2023 USD ($)	Jun. 29, 2024 USD ($) maintenance_site store acquisition	Jul. 01, 2023 USD ($) acquisition maintenance_site car_wash_site
Business Acquisition [Line Items]
Cash used in business acquisitions, net of cash acquired			$ 2,759	$ 44,868
Acquisition related costs	$ 271	$ 3,750	2,065	5,597
Total consideration	11,000	144,000	11,000	144,000
Net gain on sale	3,000	22,000	$ 3,000	$ 25,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CARSTAR Franchise
Business Acquisition [Line Items]
Number of stores sold | store			9
Total consideration	18,000		$ 18,000
Goodwill	9,000		9,000
Net gain on sale			$ 6,000
Maximum
Business Acquisition [Line Items]
Deferred consideration payment period			1 year
2024 Acquisitions | Maintenance
Business Acquisition [Line Items]
Number of businesses acquired | acquisition			1
Number of maintenance sites | maintenance_site			2
Cash used in business acquisitions, net of cash acquired			$ 2,000
2024 Acquisitions | Car Wash
Business Acquisition [Line Items]
Number of businesses acquired | acquisition			1
Number of maintenance sites | maintenance_site			1
2023 Acquisitions | Maintenance
Business Acquisition [Line Items]
Number of businesses acquired | acquisition				3
Number of maintenance sites | maintenance_site				3
Cash used in business acquisitions, net of cash acquired				$ 6,000
2023 Acquisitions | Car Wash
Business Acquisition [Line Items]
Number of businesses acquired | acquisition				2
Cash used in business acquisitions, net of cash acquired				$ 15,000
Number of car wash sites | car_wash_site				3
2023 Acquisitions | Paint, Collision & Glass
Business Acquisition [Line Items]
Number of businesses acquired | acquisition				2
Cash used in business acquisitions, net of cash acquired				$ 6,000
Number of paint, collision and glass sites | maintenance_site				2
2022 and 2021 Acquisitions
Business Acquisition [Line Items]
Consideration liability	2,000	16,000	$ 2,000	$ 16,000
Payment of contingent consideration related to acquisitions			2,000	20,000
Business Acquisition
Business Acquisition [Line Items]
Acquisition related costs	$ 1,000	$ 1,000	$ 1,000	$ 1,000

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Schedule of Estimated Purchase Price Allocation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Liabilities:
Cash consideration, net of cash acquired	$ 2,759	$ 44,868
Goodwill	$ 1,431,555		$ 1,455,946
Maintenance
Assets:
Operating lease right-of-use assets		658
Property and equipment, net		3,705
Assets acquired		4,363
Liabilities:
Accrued expenses and other liabilities		20
Operating lease liabilities		641
Total liabilities assumed		661
Cash consideration, net of cash acquired		5,862
Deferred consideration		285
Total consideration, net of cash acquired		6,147
Goodwill		2,445
Car Wash
Assets:
Property and equipment, net		11,052
Assets acquired		11,052
Liabilities:
Total consideration, net of cash acquired		15,000
Goodwill		3,948
Paint, Collision & Glass
Assets:
Property and equipment, net		667
Inventory		35
Assets acquired		702
Liabilities:
Cash consideration, net of cash acquired		4,947
Deferred consideration		695
Total consideration, net of cash acquired		5,642
Goodwill		$ 4,940

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Revenue from Contract with Customer [Abstract]
Capitalized costs to obtain a contract	$ 7		$ 7		$ 6
Contract assets			1	$ 1
Contract liabilities	31		31		$ 31
Revenue recognized (less than)	$ 1	$ 1	$ 1	$ 2

Segment Information - Schedule

Segment Information - Schedule of Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Segment Reporting Information [Line Items]
Total net revenue	$ 611,566	$ 606,851	$ 1,183,792	$ 1,169,318
Franchise royalties and fees
Segment Reporting Information [Line Items]
Total net revenue	50,029	49,805	95,074	93,320
Company-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	394,681	394,578	769,137	770,644
Independently-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	60,280	61,533	113,327	114,065
Advertising fund contributions
Segment Reporting Information [Line Items]
Total net revenue	24,911	24,749	48,981	46,426
Supply and other revenue
Segment Reporting Information [Line Items]
Total net revenue	81,665	76,186	157,273	144,863
Operating Segments | Maintenance
Segment Reporting Information [Line Items]
Total net revenue	277,923	242,327	539,636	469,995
Segment Adjusted EBITDA	102,935	84,812	194,371	157,045
Operating Segments | Maintenance | Franchise royalties and fees
Segment Reporting Information [Line Items]
Total net revenue	16,764	14,215	31,218	26,658
Operating Segments | Maintenance | Company-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	230,809	205,673	451,680	400,933
Operating Segments | Maintenance | Independently-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Maintenance | Advertising fund contributions
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Maintenance | Supply and other revenue
Segment Reporting Information [Line Items]
Total net revenue	30,350	22,439	56,738	42,404
Operating Segments | Car Wash
Segment Reporting Information [Line Items]
Total net revenue	156,903	164,755	301,625	321,735
Segment Adjusted EBITDA	33,772	39,761	62,906	80,809
Operating Segments | Car Wash | Franchise royalties and fees
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Car Wash | Company-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	95,211	101,615	185,438	204,061
Operating Segments | Car Wash | Independently-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	60,280	61,533	113,327	114,065
Operating Segments | Car Wash | Advertising fund contributions
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Car Wash | Supply and other revenue
Segment Reporting Information [Line Items]
Total net revenue	1,412	1,607	2,860	3,609
Operating Segments | Paint, Collision & Glass
Segment Reporting Information [Line Items]
Total net revenue	112,025	133,158	218,413	253,961
Segment Adjusted EBITDA	35,172	41,057	65,992	76,507
Operating Segments | Paint, Collision & Glass | Franchise royalties and fees
Segment Reporting Information [Line Items]
Total net revenue	24,475	26,530	49,107	50,828
Operating Segments | Paint, Collision & Glass | Company-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	67,523	86,110	130,032	163,589
Operating Segments | Paint, Collision & Glass | Independently-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Paint, Collision & Glass | Advertising fund contributions
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Paint, Collision & Glass | Supply and other revenue
Segment Reporting Information [Line Items]
Total net revenue	20,027	20,518	39,274	39,544
Operating Segments | Platform Services
Segment Reporting Information [Line Items]
Total net revenue	61,242	57,338	115,067	109,371
Segment Adjusted EBITDA	25,311	22,519	45,182	39,527
Operating Segments | Platform Services | Franchise royalties and fees
Segment Reporting Information [Line Items]
Total net revenue	8,790	9,060	14,749	15,834
Operating Segments | Platform Services | Company-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	1,138	1,180	1,987	2,061
Operating Segments | Platform Services | Independently-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Platform Services | Advertising fund contributions
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Operating Segments | Platform Services | Supply and other revenue
Segment Reporting Information [Line Items]
Total net revenue	51,314	47,098	98,331	91,476
Corporate and Other
Segment Reporting Information [Line Items]
Total net revenue	3,473	9,273	9,051	14,256
Segment Adjusted EBITDA	(44,032)	(40,402)	(83,012)	(81,653)
Corporate and Other | Franchise royalties and fees
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Corporate and Other | Company-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Corporate and Other | Independently-operated store sales
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Corporate and Other | Advertising fund contributions
Segment Reporting Information [Line Items]
Total net revenue	24,911	24,749	48,981	46,426
Corporate and Other | Supply and other revenue
Segment Reporting Information [Line Items]
Total net revenue	(21,438)	(15,476)	(39,930)	(32,170)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Segment Adjusted EBITDA	$ 153,158	$ 147,747	$ 285,439	$ 272,235

Segment Information - Schedul_2

Segment Information - Schedule of Reconciliation of Segment Adjusted EBITDA to Income Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Segment Reporting Information [Line Items]
Depreciation and amortization			$ 87,862	$ 83,617
Interest expense, net	$ 31,796	$ 40,871	75,568	79,012
Acquisition related costs	271	3,750	2,065	5,597
Store opening costs	940	1,377	2,203	2,402
Cloud computing amortization			2,414	0
Segment Reconciling Items
Segment Reporting Information [Line Items]
Income before taxes	48,030	58,024	58,455	98,744
Depreciation and amortization	44,633	45,419	87,862	83,617
Interest expense, net	31,796	40,871	75,568	79,012
Acquisition related costs	271	3,750	2,065	5,597
Non-core items and project costs, net	5,126	2,803	9,837	4,627
Store opening costs	940	1,377	2,203	2,402
Cloud computing amortization	1,069	0	2,414	0
Share-based compensation expense	10,982	4,485	22,843	7,049
Foreign currency transaction loss (gain), net	681	(1,302)	5,002	(2,977)
Asset sale leaseback (gain) loss, impairment and closed store expenses	9,630	(7,680)	19,190	(5,836)
Segment Adjusted EBITDA	$ 153,158	$ 147,747	$ 285,439	$ 272,235

Assets Held For Sale - Narrativ

Assets Held For Sale - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024 USD ($) store	Jul. 01, 2023 USD ($)	Jun. 29, 2024 USD ($) store location	Jul. 01, 2023 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of stores closed | store	29		29
Additions			$ 58,562
Impairments	$ 12,000		29,765
Net gain on sale	3,000	$ 22,000	$ 3,000	$ 25,000
Discontinued Operations, Held-for-Sale or Disposed of by Sale
Schedule of Equity Method Investments [Line Items]
Number of location | location			30
Net gain on sale	$ 5,000		$ 11,000

Assets Held For Sale - Schedule

Assets Held For Sale - Schedule of Assets Held-for-Sale (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 29, 2024	Jun. 29, 2024
Goodwill [Roll Forward]
Beginning balance		$ 301,229
Additions		58,562
Impairments	$ (12,000)	(29,765)
Sales and disposals		(92,843)
Ending balance	$ 237,183	$ 237,183

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Debt Instrument [Line Items]
Total debt	$ 2,919,641	$ 2,977,996
Less: unamortized debt issuance costs	(30,486)	(34,511)
Less: current portion of long-term debt	(33,332)	(32,673)
Total long-term debt, net	2,855,823	2,910,812
Senior notes | Series 2018-1 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	257,813	259,188
Senior notes | Series 2019-1 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	283,500	285,000
Senior notes | Series 2019-2 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	261,938	263,313
Senior notes | Series 2020-1 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	167,956	168,875
Senior notes | Series 2020-2 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	434,250	436,500
Senior notes | Series 2021-1 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	437,625	439,875
Senior notes | Series 2022-1 Securitization Senior Notes, Class A-2
Debt Instrument [Line Items]
Total debt	358,613	360,438
Term Loan Facility
Debt Instrument [Line Items]
Total debt	468,750	491,250
Revolving Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	223,000	248,000
Other debt
Debt Instrument [Line Items]
Total debt	$ 26,196	$ 25,557

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details)		1 Months Ended	6 Months Ended
	Jul. 31, 2024 USD ($) extension_option	Dec. 31, 2019 USD ($) extension_option	Jun. 29, 2024 USD ($)	Jul. 01, 2023 USD ($)	Aug. 08, 2024 USD ($)	Dec. 30, 2023 USD ($)	May 31, 2021 USD ($)
Debt Instrument [Line Items]
Total debt			$ 2,919,641,000			$ 2,977,996,000
Proceeds from revolving lines of credit and short-term debt			46,000,000	$ 230,000,000
Repayment of revolving lines of credit and short-term debt			71,000,000	$ 120,000,000
Series 2019-3 Variable Funding Senior Notes, Class A-1 | Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount		$ 115,000,000
Number of extension options | extension_option		3
Extension period (in years)		1 year
Outstanding debt			0
Borrowings or repayments of debt			0
Outstanding letters of credit			$ 25,000,000
Series 2019-3 Variable Funding Senior Notes, Class A-1 | Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Number of extension options | extension_option	3
Series 2021-1 Variable Funding Senior Notes, Class A-1 | Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount		$ 135,000,000
Series 2024-1 2.791% Fixed Rate Senior Secured Notes, Class A-2 | Senior notes | Subsequent Event
Debt Instrument [Line Items]
Debt issued	$ 275,000,000
Interest rate (as a percent)	6.372%
Series 2024-2 Variable Funding Senior Notes, Class A-1 | Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Aggregate principal amount	$ 400,000,000
Number of extension options | extension_option	2
Extension period (in years)	1 year
Outstanding letters of credit					$ 26,000,000
Revolving Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount							$ 300,000,000

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024 USD ($) maintenance_site	Jul. 01, 2023 USD ($)	Jun. 29, 2024 USD ($) maintenance_site	Jul. 01, 2023 USD ($)	Dec. 30, 2023 USD ($)	Jul. 01, 2023 maintenance_site	Jul. 01, 2023 car_wash_site
Lessee, Lease, Description [Line Items]
Number cash wash properties sold	8		8			4	33
Total consideration	$ 11,000	$ 144,000	$ 11,000	$ 144,000
Operating lease right-of-use assets	1,378,264		1,378,264		$ 1,389,316
Net gain on sale	3,000	$ 22,000	3,000	$ 25,000
March 2021 Operating Lease Agreements
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	8,000		8,000		112,000
Operating lease liability	$ 8,000		$ 8,000		$ 112,000
Minimum | March 2021 Operating Lease Agreements
Lessee, Lease, Description [Line Items]
Lease term (in years)	18 years		18 years
Maximum | March 2021 Operating Lease Agreements
Lessee, Lease, Description [Line Items]
Lease term (in years)	20 years		20 years

Leases - Cash Flows Related to

Leases - Cash Flows Related to Lease Arrangements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases	$ 84,415	$ 67,107
Operating cash flows used in finance leases	101	810
Financing cash flows used in finance leases	$ 197	$ 953

Share-based Compensation - Narr

Share-based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 11,000	$ 4,000	$ 22,843	$ 7,049
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of granted new awards (in shares)	19,207		951,530
Grant-date fair value of PSUs granted	$ 1,000		$ 13,000
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			2 years
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of granted new awards (in shares)	19,214		1,075,784
Award vesting period (in years)			3 years
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (as a percent)			0%
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (as a percent)			200%
Restricted stock award, performance based PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant-date fair value of PSUs granted			$ 9,000
Restricted stock award, market-based PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant-date fair value of PSUs granted			$ 8,000

Share-based Compensation - Sche

Share-based Compensation - Schedule of Valuation Assumptions (Details) - Performance stock units	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual dividend yield	0%	0%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	2 years 7 months 6 days	2 years 7 months 6 days
Risk-free interest rate	4.48%	3.65%
Expected volatility	49.20%	37.90%
Correlation to the index peer group	46.90%	60.20%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	2 years 9 months 18 days	2 years 9 months 18 days
Risk-free interest rate	4.65%	4.51%
Expected volatility	51.10%	38.80%
Correlation to the index peer group	49.20%	60.30%

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Basic earnings per share:
Net income	$ 30,159	$ 37,749	$ 34,420	$ 67,498
Less: Net income attributable to participating securities, basic	638	794	729	1,420
Net income after participating securities, basic	$ 29,521	$ 36,955	$ 33,691	$ 66,078
Weighted-average common shares outstanding (in shares)	159,795	162,911	159,713	162,848
Basic earnings per share (in dollars per share)	$ 0.18	$ 0.23	$ 0.21	$ 0.41
Diluted earnings per share:
Net income	$ 30,159	$ 37,749	$ 34,420	$ 67,498
Less: Net income attributable to participating securities, diluted	120	708	138	1,267
Net income after participating securities, diluted	$ 30,039	$ 37,041	$ 34,282	$ 66,231
Weighted-average common shares outstanding (in shares)	159,795	162,911	159,713	162,848
Dilutive effect of share-based awards (in shares)	970	3,977	970	4,034
Weighted-average common shares outstanding, as adjusted (in shares)	160,765	166,888	160,683	166,882
Diluted earnings per share (in dollars per share)	$ 0.18	$ 0.22	$ 0.21	$ 0.40

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Earnings Per Share [Abstract]
Performance awards contingent on performance conditions which have not been met yet (in shares)	1,805,754	4,881,630	1,805,754	4,881,630

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Antidilutive Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,864	1,703	2,180	1,703
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,124	0	440	0
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,740	1,703	1,740	1,703

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 17,871	$ 20,275	$ 24,035	$ 31,246
Effective income tax rate	37.20%	34.90%	41.10%	31.60%