U.S. Car Wash Chains: Performance, Differentiation, and Investment Landscape

7980 Fountain Mesa Rd, Fountain, CO 80817 - Mister Car Wash

The express car wash industry in the United States has undergone rapid growth and consolidation in recent years, transforming a once fragmented market into one attracting significant private equity and lender interest. Major car wash chains now operate hundreds of locations with robust cash flow profiles driven by recurring subscription revenue. This analytical overview examines the top car wash operators’ performance metrics, strategic differentiators, and recent transactions – all through the lens of lenders and private equity investors focused on risk/return, cash-flow durability, and exit opportunities.

Major Players and Performance Overview

Scale of Operations: The largest car wash chains now span hundreds of sites across the country, delivering strong revenues and EBITDA. Mister Car Wash (NYSE: MCW), the only publicly traded pure-play car wash, operates over 500 locations in 21 states – making it the nation’s largest car wash chain by unit count. In 2024, Mister Car Wash reported quarterly revenues of approximately $250 million with EBITDA margins near 30%. Its Unlimited Wash Club subscription program accounted for nearly 74% of total wash sales (up from ~71% a year prior), reflecting deep membership penetration that drives highly predictable cash flow. Mister ended 2023 with 476 locations after adding 35 new builds and 6 acquisitions that year, achieving ~6% revenue growth despite modest same-store sales gains. This translated to an average unit volume (AUV) on the order of $1.5–$2.0 million per site (author’s estimate), underscoring the strong unit-level economics in this sector.

• Whistle Express Car Wash – a relatively new platform backed by Oaktree Capital – catapulted into the top ranks in 2025 by acquiring Driven Brands’ car wash portfolio (formerly Take 5 Car Wash). Whistle agreed to purchase 380 U.S. car wash sites for $385 million ($255M cash plus a $130M seller note). After rebranding those locations, Whistle will operate roughly 530 locations across 23 states, overtaking all others as the largest express car wash operator by site count. This rapid scale has come via consolidation rather than organic growth, and performance data is not yet public. However, the acquisition price ($1.0M per site) suggests those units may have been underperforming or require capital improvements – a point to watch as Whistle integrates and upgrades the portfolio.

• Tidal Wave Auto Spa – backed by Golden Gate Capital – has pursued an aggressive greenfield growth strategy. The Georgia-based chain expanded from ~60 locations in 2020 to about 290 locations as of late 2024. Remarkably, Tidal Wave opened 51 new ground-up locations in the first nine months of 2023 alone. This torrid pace more than doubled its opening rate versus the prior year. Such expansion helped boost system-wide sales (exact figures undisclosed) and cemented Tidal Wave’s position among the top five U.S. conveyor car wash chains. While private, Tidal Wave’s unit volumes are believed to be strong; a 2020 recapitalization valued the company around $950 million, and the chain’s rapid growth since suggests significantly higher enterprise value today.

• ZIPS Car Wash – once a leading consolidator with 260+ locations in 23 states – illustrates the pitfalls of over-expansion. Zips generated roughly $303 million in revenue (LTM) with an average site volume around $1.1–1.2M. The company built a 625,000-member Unlimited Wash Club that delivered two-thirds of revenue (vs. one-third from single “retail” washes), similar to peers’ heavy subscription mix. Despite these solid top-line metrics, Zips became over-leveraged with $654 million in debt (much incurred via sale-leasebacks and acquisitions). In February 2025, Zips filed for Chapter 11 bankruptcy to restructure ~$279M of that debt. The filing revealed a cash balance of under $1M, highlighting liquidity stress. Zips’ case underscores that high unit-level EBITDA can be undone by excessive fixed costs and debt service – a key risk consideration for lenders.

• Quick Quack Car Wash – a fast-growing regional player – now operates 230+ locations across California, Texas, Arizona, Utah, and Colorado as of mid-2024 expanding to about 275 sites by year-end 2024. Quick Quack’s revenues are not public, but likely in the few-hundred-million range given site count and typical AUV. The chain boasts over 1 million unlimited-wash members (according to company marketing) indicative of robust penetration in its markets. Quick Quack’s aggressive growth and profitability attracted a major capital infusion: in June 2024, KKR acquired a significant minority stake for $850 million. This deal valued Quick Quack among the industry’s top franchises and provided capital to accelerate expansion. Founders and existing sponsor Seidler Equity retained substantial ownership, suggesting confidence in the chain’s continued growth trajectory.

• Spotless Brands – a private roll-up platform established in 2020 by Access Holdings – has quietly amassed around 200 locations across 10 states plus D.C. under regional banners like Cobblestone, Flagship, Okie Express and others. By pursuing acquisitions and new builds, Spotless achieved significant scale and approximately $200 million in annual EBITDA, implying strong per-unit cash flow. In early 2023, Spotless raised $600 million of growth equity (including a minority stake by Wafra Inc.) to fund further expansion. Now, the owners are exploring a sale that could value Spotless at nearly $3 billion (including debt) – roughly a 15× EBITDA multiple, reflecting investor appetite for the chain’s scale and cash flows. This valuation equates to ~$15M per site, on par with premium multiples in the sector.

• Club Car Wash / Express Wash Concepts (EWC) – Backed by Wildcat Capital, these two Midwest-focused operators formed a combined platform exceeding 225 locations as of late 2023. Club Car Wash (based in Missouri) and EWC (Ohio-based, with brands like Moo Moo Express and Flying Ace) together create one of the largest regional portfolios (the DRB Top 50 list actually ranks “EWC/Club” as the #3 U.S. chain with 312 sites, likely counting development pipeline). In October 2023, Sculptor Real Estate provided a significant growth investment to this platform, signaling plans to accelerate new site development. While financials are private, the partnership’s scale suggests a revenue run-rate well into the hundreds of millions and a potential future exit once growth targets are met.

• Tommy’s Express Car Wash – a unique franchise-based model – has also achieved national scale. By the end of 2023, Tommy’s had 183 operating locations across 30 states, after opening 47 new franchise units that year alone. The company (an offshoot of Tommy Car Wash Systems, its equipment/manufacturing arm) has 400+ new projects in the pipeline and is expanding internationally (groundbreakings in Europe, Canada, etc.). Tommy’s Express locations often boast cutting-edge tunnel technology and a recognizable circular building design, leveraging patented equipment from its parent company. Franchise Times ranked Tommy’s the fastest-growing franchise by unit growth in 2023. With franchisees funding site development, Tommy’s achieves rapid expansion with relatively asset-light corporate financials – though system-wide sales and profits are not publicly disclosed.

By the numbers, the top express car wash chains each average on the order of $1–2 million in annual sales per location, with unit-level EBITDA margins often in the 40–50% range (industry estimates) due to high throughput and lean labor models. Most major players have hundreds of thousands of subscription members, translating to recurring monthly revenue that proved resilient even during economic disruptions (e.g. Mister Car Wash added ~247,000 net members in 2020 despite the pandemic). This combination of scale, growth, and cash flow has made the sector attractive to investors, pushing valuations for large platforms into the 10–15× EBITDA range in recent deals. However, the Zips bankruptcy is a reminder that growth must be accompanied by prudent balance sheet management to be truly “successful” in the eyes of lenders.

Strategic Differentiators Among Top Chains

While express car wash operators share a common core model (quick drive-through washes with free vacuum lots and monthly membership plans), each major chain has carved out strategic nuances to sharpen its competitive edge:

• Subscription Membership Focus: Nearly all leading chains prioritize converting customers to monthly unlimited plans, but Mister Car Wash stands out for sheer penetration – with about 74% of its wash revenue coming from Unlimited Wash Club members Mister’s program, one of the oldest, boasts ~2 million members nationwide. The company continually innovates on this front – for example, launching a new premium “Titanium” membership tier in 2023 to upsell existing subscribers to higher price points. This strategy of increasing revenue per member (through tiered service levels) in addition to net member growth is relatively unique to Mister’s mature platform. Other chains, like Quick Quack, have driven membership via more promotional means – Quick Quack offers an enticing first-month rate as low as $9.99 to new subscribers and even markets family plans for multiple vehicles. Quick Quack’s quirky branding (mascot duck and “Don’t Drive Dirty” slogan) and emphasis on a fun customer experience have helped it surpass 1 million members by appealing to families and frequent washers. Notably, as part of the KKR investment, Quick Quack is implementing a broad-based employee ownership program – a differentiator aimed at aligning staff with customer service excellence and growth (consistent service quality is crucial to retaining subscribers in any membership model).

Above: A Quick Quack team member provides a finishing touch at an express wash. Customer Experience & Service Model: Top chains differentiate on the margins of service and convenience. Tommy’s Express leverages its technology integration – e.g. license plate recognition (LPR) for automatic gate entry and a robust mobile app – to create a frictionless experience for members (no RFID stickers needed, and a live app showing queue times). Tommy’s also markets its patented equipment (designed in-house) which delivers a consistent, high-quality wash with flashy “in-wash entertainment” lighting – helping the franchise earn customer service accolades. Tidal Wave Auto Spa emphasizes a family-friendly approach: many sites host charity wash events and the chain offers free washes periodically as community promotions. Tidal Wave’s Clean Clubmembership includes tiered options and even discounted memberships for families and fleets, aiming to maximize volume. Mister Car Wash, for its part, has honed operational efficiency to support its service promises – for example, designing new sites with multiple pay lanes (including dedicated membership lanes) to minimize wait times, and staffing each location with a guest service specialist focused on membership sales/upgrades. Mister also tends to acquire high-volume locations in dense markets and then infill with new builds, pursuing a cluster strategy to improve brand presence and operational synergies in each metro.

• Pricing and Wash Packages: Differentiation is also seen in how wash packages are structured. Quick Quack uses a playful naming convention (“Good, Better, Best” become “Good Duck, Lucky Duck, Ceramic Duck”washes), reinforcing its brand while upselling premium services like ceramic coating. Quick Quack keeps pricing straightforward and promotes add-a-car discounts for multi-car households. Mister Car Wash recently rolled out the ultra-premium “Titanium” package nationwide – adding features like ceramic protectant and tire shine – and has rapidly achieved over 15% penetration of Titanium among new memberships. This upsell not only boosts revenue but also differentiates Mister’s top-tier offering as more comprehensive. Many chains offer similar premium tiers (e.g. Tommy’s “Works” wash, Tidal Wave’s ceramic sealant package), but Mister’s systemwide execution of a new tier in under a year showcases an organizational agility that competitors may find hard to match. On the other end, pricing models across chains are all generally subscription-heavy, but some innovate with loyalty programs for non-members: for instance, Autobell Car Wash (a mid-sized chain) has traditionally offered full-service interior cleaning and sells discounted ticket books – a different model than pure express operators. Most large chains, however, have gravitated entirely to the monthly subscription model as the primary value proposition.

• Operational Efficiency and Real Estate: Express car washes are relatively simple operations, but subtle differences in execution matter for margins. Zips Car Wash grew largely via acquisition, inheriting a mix of equipment and layouts. Integrating those sites proved challenging; Zips ran into operational inefficiencies and high upgrade costs – contributing to its financial strain. By contrast, Spotless Brands has maintained each acquired regional brand’s local management while standardizing back-office functions. This decentralized operating model (keeping local brand names like Cobblestone Auto Spa in Arizona or Flagship in D.C.) arguably preserves customer loyalty and local goodwill, while Spotless provides corporate support for things like chemical purchasing, marketing, and IT. That strategy has helped Spotless drive strong EBITDA (estimated ~$1M per site) by combining scale advantages with local-market focus. On real estate, some chains prefer owning vs. leasing their sites: historically Mister owned many of its land parcels but did sale-leasebacks on dozens of locations in recent years to free up growth capital. Heavy use of sale-leasebacks can boost expansion in the short term but adds fixed rent costs (as Zips’ case illustrated). Lenders closely watch rent-adjusted EBITDA and lease liabilities when evaluating such strategies. Additionally, location strategy differs: Circle K (Alimentation Couche-Tard) has started a True Blue Car Wash brand to add express wash sites adjacent to convenience stores/fuel stations, leveraging captive traffic. This could pose a strategic threat to standalone car wash chains in the long run, though many top chains thus far have focused on standalone, high-traffic retail locations with ample space for queue lines and vacuum stations.

• Technology Integration: The leading chains increasingly compete on tech-enabled convenience. Many have invested in mobile apps for account management, RFID or LPR systems for instant gate access, and sophisticated point-of-sale systems for marketing and yield management. Whistle Express, for example, has announced plans to implement a unified mobile app, upgraded pay kiosks, and license plate recognition across all the former Take 5 sites it acquired. Whistle is also upgrading the physical equipment (e.g. installing ceramic coating applicators and improved dryers) to standardize the wash quality. Mister Car Wash has a robust CRM and uses data analytics to track member usage and churn, enabling targeted retention offers. Some chains tout unique tech features – Tommy’s Express highlights its app’s ability to enroll new members in under a minute and its proprietary conveyor belt system (Tommy’s Transporter™) which is said to load cars faster and safer than traditional chains. The net effect of tech integration is higher throughput and customer satisfaction – critical for maximizing those unlimited plans (members who perceive consistent, convenient service are less likely to cancel). From an investor viewpoint, such technology investments can be a double-edged sword: they create upfront costs but can yield competitive advantage and lower labor needs (e.g. automated pay stations reduce attendant count). The best operators balance tech spend with ROI discipline, rolling out proven solutions system-wide.

• Brand and Customer Loyalty: Soft differentiators like brand image and community engagement also play a role. Quick Quack’s brand is deliberately lighthearted – employees wear yellow bow-ties and often hand out rubber ducky toys to kids – cultivating a friendly, family-oriented reputation. This has translated into a high Net Promoter Score and strong member referral business. Tidal Wave Auto Spa engages communities through charity days (its annual “Tidal Wave Gives Back” day donates all proceeds to charity) and emphasizes eco-friendliness (recycling 85% of water used, and biodegradable detergents) as part of its brand ethos. Such initiatives can differentiate chains in the eyes of consumers and municipalities (helping zoning approvals for new sites). Mister Car Wash has a long-established brand dating to 1969 and leverages that with a nationwide advertising presence, but it too localizes outreach – for example, Mister offers free washes to veterans on Veterans Day and has a corporate foundation for children’s charities, burnishing its image as a responsible operator. For investors, strong brand loyalty and local goodwill can translate to sustained traffic and pricing power, supporting long-term cash flow durability.

In summary, the winning formulas in the car wash sector center on (1) scalable subscription programs (to lock in recurring revenue), (2) operational excellence and smart site selection (to maximize throughput and returns on capital), and (3) strategic use of technology and marketing (to enhance the customer experience and build loyalty). Each major chain executes these elements with a slightly different flavor, but all aim for the same outcome: high wash volumes, stable membership bases, and efficient, low-variable-cost operations that yield strong cash flow conversion.

Recent Industry Developments: M&A, Restructuring and Capital Events

The past 1–2 years have seen unprecedented deal activity in the car wash space as platforms consolidate and investors shuffle their portfolios. Key recent developments include:

• Major Acquisitions and Combinations: The headline deal was Whistle Express Car Wash’s acquisition of Driven Brands’ U.S. car wash business (branded Take 5 Car Wash) announced in February 2025. This $385 million transaction for ~380 sites instantly positioned Whistle as the largest U.S. car wash operator. The acquired stores (spread across 17 states) are being rebranded to Whistle and outfitted with new technology and service upgrades. This divestiture by Driven Brands (which had acquired the portfolio in pieces, including the International Car Wash Group in 2020) reflects a strategic retreat by a franchised automotive-services parent, and a doubling-down by private equity (Oaktree) on the express wash sector. Another notable combination occurred in the Midwest: Wildcat Capital’s merging of Club Car Wash and Express Wash Concepts (EWC) under one platform, which was then recapitalized with new funding from Sculptor in late 2023. This created a 300+ unit entity that can pursue larger acquisitions and greenfield projects. We also saw continued smaller bolt-ons – e.g. Quick Quack acquired 6 sites in Washington state (Glint Car Wash) to enter the Pacific Northwest, and Florida-based El Car Wash (backed by Warburg Pincus since 2022) picked up 9 more locations in Florida from Zips and others. These deals illustrate the regional consolidation strategy: platforms are buying out local chains to quickly gain market share in target geographies.

• Private Equity Investments and Valuations: Investor appetite remains robust, though rising interest rates have made debt financing more costly. In addition to the KKR/Quick Quack $850M minority stake deal, there have been several other high-profile investments: in 2022, Warburg Pincus acquired a controlling stake in El Car Wash (Miami) to fuel its growth across Florida. In 2023, Oaktree not only facilitated the Whistle/Take 5 deal but also acquired Magnolia Wash Holdings (a Southeastern U.S. car wash operator), signaling an intent to perhaps merge Magnolia’s ~60 sites into Whistle’s network. Meanwhile, Access Holdings and Wafra’s capital raise for Spotless Brands (valuing it near $3B) has positioned Spotless for a likely exit via sale or IPO. Indeed, news broke in January 2025 that Spotless Brands’ owners are exploring a sale process with William Blair advising. If Spotless fetches its target price, it would mark one of the largest car wash transactions to date. These rich valuations are supported by the cash-flow durability of the subscription model and the belief that scaled platforms can continue to consolidate the industry. However, investors are also more discerning now – focusing on quality of locations and same-store performance, not just unit growth.

• Bankruptcies and Restructuring: The express car wash boom has not been without hiccups. ZIPS Car Wash’s Chapter 11 filing in early 2025 was a cautionary tale. The company plans a speedy reorganization, aided by $30M in debtor-in-possession financing and a pre-arranged plan to reduce debt by ~$279M. Zips also moved to sell select high-value stores to raise cash (e.g. 6 Orlando sites sold for $58M, averaging ~$9.6M per site). The Zips situation arose from overleveraging and rapid, debt-fueled expansion – it had executed numerous sale-leasebacks and acquisitions in a short period. When inflation and rising interest rates hit in 2022–2023, Zips’ interest expense ballooned and margins were squeezed by higher labor and chemical costs. Intensifying competition in some markets further pressured its same-store sales. The bankruptcy is expected to conclude with Zips continuing operations (it kept all sites open and retained its ~1,800 employees through restructuring), but lenders are taking a haircut. This episode may cool the most aggressive debt-driven roll-ups, at least in the near term. Apart from Zips, no other large chains have gone bankrupt; however, some smaller operators have quietly sold or closed under competitive pressure. Overall, the industry remains healthy, but Zips’ fall highlights the importance of sustainable capital structures.

• Public Market Developments: Mister Car Wash (MCW), which went public in mid-2021 at a ~$5.6 billion valuation, continues to be a bellwether for the industry. Its stock performance has been mixed – after an initial post-IPO pop (the stock rose ~26% on debut), it has traded down from highs, reflecting investor concerns about rising competition and interest costs on its own debt. Nonetheless, MCW has delivered steady growth: 2024 saw ~7% revenue growth and ~12% adjusted EBITDA growth, and the company continues to acquire smaller chains (six locations were acquired in 2023)i while opening dozens of new units. For private equity owners, Mister’s IPO was a proof-of-concept that a scaled car wash can access public markets for exit. Another public player, Driven Brands (NASDAQ: DRVN), had entered the car wash space by acquiring ICWG and rebranding sites as Take 5 Car Wash, but its recent divestiture to Whistle shows a strategic pivot – Driven is refocusing on its core oil change and service franchises amid investor pressure to improve margins. This indicates that pure-play car wash companies are more likely to thrive as standalone businesses or PE platforms than as non-core divisions of larger automotive firms (a consideration for any diversified companies eyeing the space).

• Mergers & IPO Outlook: With so many well-capitalized platforms now in play (Mister, Whistle, Spotless, Quick Quack, Tidal Wave, Tommy’s, Club/EWC, etc.), the next few years could see further mergers or an IPO wave. Spotless is a prime IPO candidate if market conditions favor – a ~$3B enterprise value and $200M EBITDA are in the realm that could attract public market interest, especially given Mister Car Wash’s ~$2B market cap today. Alternatively, sponsor-to-sponsor sales may continue (e.g. a PE fund buying Tidal Wave from Golden Gate if an IPO isn’t pursued). We have also seen interest from infrastructure and real estate investors due to the real assets (land) component and the long-term, repeat-customer nature of the business. For instance, some car wash chains have been packaged into net-lease REIT portfolios, and one could envision a scenario where a REIT or infrastructure fund partners with an operator to spin off real estate – another form of “exit.” In short, exit visibility remains strong: strategic acquirers (like global petrol retailers or car care companies) and financial sponsors alike are actively scouting this space, giving current investors multiple pathways to realize returns.

Investor Perspective: Cash Flows, Risks, and Returns

For lenders and private equity investors, modern car wash chains present a compelling mix of high-margin, recurring-revenue businesses with opportunities for further consolidation – but also some operational and financial risks to navigate:

• Cash-Flow Durability: The hallmark of the express car wash model is its subscription revenue. When 60–75% of a chain’s sales come from monthly members (as we see with Mister, Zips, Quick Quack, etc.), the business enjoys a base of recurring cash flow that is relatively insulated from seasonal fluctuations. This membership model behaves similarly to a gym or streaming service – customers are auto-billed and tend to keep subscriptions through minor economic dips because the cost (~$20–$40 per month) is modest relative to the convenience and value perceived. During COVID lockdowns in 2020, membership counts dipped only briefly and then rebounded to new highs. For investors, this means well-run car wash chains can maintain strong debt service coverage and predictable EBITDA even if discretionary consumer spending tightens slightly. Additionally, washes have low variable costs (labor is minimal, and chemicals/water are a small percentage of sales), so EBITDA margins remain resilient as long as locations stay reasonably busy. Mister Car Wash’s ~30% EBITDA margins and Spotless Brands’ ~$200M EBITDA on ~$500M+ revenue (40% margin) exemplify the profit potential. This margin profile and recurring revenue give lenders comfort in cash-flow stability, supporting senior debt facilities and securitization strategies (indeed, some chains have explored ABS financing secured by subscription contracts).

• Growth Potential vs. Saturation: Despite the rapid growth, the U.S. car wash market remains fragmented – with an estimated 17,000+ car wash locations nationally (mostly single-unit independents). Top chains with ~200–500 sites each still hold relatively small market shares in an industry generating over $11 billion in annual sales. This fragmentation suggests ample room for continued expansion via acquisition or new unit development. Many suburban and secondary markets are just now seeing express wash chains enter. However, in certain metro areas, competitive density has increased notably, which can pressure pricing and volumes. Mister Car Wash, for example, cited “increased competition” in some markets as a factor in flat retail (non-member) sales in 2023 As every major chain (fueled by PE capital) rushes to build or buy sites, there is a risk of over-supply in the short term. Lenders will want to underwrite conservative ramp-up assumptions for new stores and consider the trade area overlap of any acquisition (e.g. are you buying a chain that will cannibalize an existing portfolio store?). The good news is that consumer demand for convenient car washing has been rising – trends show more Americans outsourcing car washing rather than doing it at home, and the subscription model encourages higher wash frequency. Industry analysts project steady growth of ~3–5% annually in car wash retail sales over the next five years. A growing pie can help mitigate localized saturation, but investors should still diligence new site ROI carefully. Site selection quality (traffic counts, demographics, ingress/egress) remains a key differentiator between top-performing sites and mediocre ones.

• Capital Structure and Real Estate Considerations: The Zips bankruptcy underscored how capital structure can make or break an investment in this sector. Car wash businesses can support moderate leverage given their cash flow, but aggressive debt (especially if combined with high lease obligations) can become untenable if performance hiccups. Investors are now more cautious on leverage – expecting sponsors to put in more equity or use earn-outs for acquisitions rather than pure debt financing. Many chains have financed growth with sale-leaseback deals, effectively monetizing real estate to fund expansion. This can boost growth but also saddles the operating company with long-term lease payments (typically with 2%+ annual escalators). As interest rates rose, those lease escalations and floating-rate debt pinched some operators. From a lender’s perspective, lease-adjusted leverage and fixed-charge coverage are critical metrics. Car washes generally have high EBITDA-to-cash conversion (capex per site is relatively low once built – mainly routine maintenance), so they can handle some debt, but prudent leverage (perhaps 3–5× EBITDA senior debt) is advisable. Private equity owners often pursue dividend recaps when times are good (taking advantage of high valuations), but given the Zips cautionary tale, new debt issuances are scrutinized more heavily by credit committees in this industry. On the positive side, the underlying real estate does provide some collateral value – many express wash sites occupy prime corner lots that can be repurposed (or sold to REITs). This downside real estate value provides a backstop in worst-case scenarios, which is a comforting factor for asset-based lenders or investors considering sale-leaseback transactions.

• Exit Visibility: For private equity investors, the car wash sector offers multiple clear exit routes. As detailed, the M&A market is active, with larger sponsors and strategic buyers looking to acquire scaled platforms. Sponsor-to-sponsor sales (secondary buyouts) are common – e.g., Leonard Green took Mister public after ~7 years, and Roark exited Take 5 Car Wash via sale to Oaktree. An eventual IPO is viable for the biggest players (Mister’s successful IPO opened that door). Strategic interest is also emerging beyond PE – oil & gas companies and convenience store chains see car washes as complementary, high-margin additions to their networks (for instance, Canada’s Couche-Tard has begun acquiring washes in the U.S., and Casey’s General Stores bought dozens of car washes integrated with its gas stations). Even auto dealers and service companies (e.g. Driven Brands before) have shown interest. This broad buyer universe bodes well for exit optionality and valuations. The key for investors is to build a platform with sufficient scale and EBITDA to attract these buyers – likely at least >50 sites and >$15M EBITDA for a tuck-in strategic sale, and >$100M EBITDA for a public listing. Given the current high valuations (10×+ EBITDA), some investors are accelerating timelines to monetize part of their stakes (as seen with KKR’s minority investment into Quick Quack, providing liquidity to earlier shareholders without a full exit). Overall, exit risk is relatively low in this space right now, assuming the business is performing, because demand for profitable, recurring-revenue assets is high.

• ESG and Regulatory Factors: It’s worth noting from a risk perspective that environmental considerations (water usage, runoff, chemicals) are increasingly important. Modern car wash chains have largely addressed this by recycling water (typically 60–85% of water is reclaimed and reused on-site) and using environmentally friendly soaps. They also actually save water vs. home washing – a professional tunnel wash might use ~30 gallons per car with recycling, versus 100+ gallons with a garden hose at home. Consequently, the industry positions itself as eco-friendly, and some states have even partnered with car washes during droughts to promote professional washing over at-home. Regulatory risk is relatively low (no hazardous chemicals, and labor is minimal – though some states could push back on automated wash facilities if seen as displacing jobs, but this has not been a major issue). For lenders concerned with ESG, the sustainability angle of recycled water and the community engagement many chains do (charity events, etc.) can be a positive factor.

In conclusion, the most successful car wash chains in the U.S. have combined scale, strategy, and subscription-driven economics to create highly cash-generative businesses. Lenders appreciate the stable, repeatable revenues and hard-asset collateral, while private equity sponsors are drawn to the roll-up potential and eventual exit premiums. However, discipline is key: aggressive expansion must be matched with capital prudence and operational excellence. As the industry continues to consolidate, investors will likely reward those chains that can grow responsibly – balancing new unit growth with same-store performance – and that differentiate themselves with strong customer loyalty and technology. With consumer demand for convenient car care showing no signs of slowing and plenty of independents still ripe for acquisition, the car wash sector offers an attractive risk/return profile. Backed by durable cash flows and multiple exit routes, the leading car wash platforms are poised to keep shining – even under the scrutiny of the most finance-savvy audiences.

June 3, 2025 by a collective of authors of MMCG Invest, LLC, car wash feasibility study consultants

Sources:

• Car Wash Advisory “Top Car Wash Companies” (2024 ranking by site count).

• DRB / Professional Carwashing & Detailing “Top 50 Conveyor Car Wash Chains” (Dec 2024).

• Reuters – “Mister Car Wash rises 26% in NYSE debut, valued at $5.6 billion”; “KKR to buy $850-million stake in Quick Quack Car Wash”; “US car wash operator Spotless Brands explores sale, sources say”.

• Bondoro Case Summary – “Zips Car Wash Chapter 11” (Feb 2025).

• Carwash.com / Raymond James – “Whistle Express acquisition highlights private equity, market momentum” (Apr 15, 2025).

• Mister Car Wash FY2023 Earnings Call Transcript and SEC filings (membership penetration and growth figures)

• Car Wash Magazine (ICA) – “Tommy’s Express Celebrates… 2023”and “Spotless Brands Might Be for Sale” (Jan 2025).

• Eden Prairie Local News – “New Mister Car Wash location” (Dec 2024).