Levine Leichtman Capital Partners (LLCP), a Los Angeles-based private equity firm, announced on November 10 that it has partnered with management to acquire Five Star Franchising from Princeton Equity Group. Financial terms of the transaction were not disclosed. Five Star was advised by Robert W. Baird & Co. Kirkland & Ellis LLP and Greenberg Traurig LLP served as legal counsel to LLCP.
The asset.
Five Star is a platform of franchisor brands in the home-services segment, with more than 870 locations across the United States and Canada. It operates eight brands — Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800 Packouts, Mosquito Shield, Card My Yard, Five Star Flooring, and Decorate With Lights — and also includes ProNexis, a provider of digital marketing and services that supports lead generation. The company was founded in 2004 and is headquartered in Springville, Utah. The existing executive team will continue to run the business, led by co-founders Scott Abbott, CEO, and Chad Jones, COO.
The platform.
Five Star is the sixth platform investment of Levine Leichtman Capital Partners VII, L.P. Across its funds, LLCP has invested in franchising concepts including SYNERGY HomeCare, Lawn Doctor, Tropical Smoothie Cafe, Shipley Do-Nuts, Kilwins, Nothing Bundt Cakes, Senior Helpers, and Hand & Stone. Five Star is its 19th franchising investment, with a combined 38 brands across a variety of industries including home services. LLCP is a middle-market firm with a 42-year track record in business services, franchising and multi-unit, education and training, and engineered products, and it currently manages $15.0 billion of assets.
A sponsor-to-sponsor handoff at the franchisor layer.
The structural point is what changed hands. This is not a contractor tuck-in or a new platform launch; it is a private equity-to-private equity sale of a multi-brand franchisor, with management rolling forward. Matthew Frankel, a managing partner of LLCP, said the firm intends to expand unit count, drive same-store sales growth, and acquire additional brands. Abbott pointed to ProNexis and the company’s buying group as levers for growth, organically and through acquisitions. The buyer is underwriting the franchisor’s systems — brand development, franchisee support, and shared marketing — rather than a single local book of service work.
What it means.
For owners and operators in home services, this deal is a reminder that sponsor capital is still rotating through the franchisor layer of the industry, not only through contractor roll-ups. A platform with eight brands and more than 870 locations is being recapitalized by a firm that already treats franchising as a dedicated investment theme. Franchisees of those brands, and owners of adjacent concepts, should expect the new holder to keep looking for additional brands and unit growth. No purchase price was disclosed.
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