Franchise Equity Partners Invests in Largest Franchisee Operator Within Neighborly
Significant investment in franchisee Reliable Residential to grow Precision Garage Door Service and other Neighborly brands in key markets across the country
NEW YORK, Oct. 16, 2023 /PRNewswire/ — Franchise Equity Partners (FEP), a private investment firm on a mission to create long-term partnerships with quality franchisees and franchisors, today announced a new partnership with management of Reliable Residential HoldCo ("Reliable Residential"), the largest franchisee operator within Neighborly®, the world's largest home services company. With the partnership, FEP has now established a leading residential services platform to invest in additional Precision Garage Door Service™ operations and other Neighborly brands. Reliable Residential currently has operations in Clearwater, Florida, Columbus, Ohio and Oklahoma City, Oklahoma and FEP will help expand its presence across select markets within those states, as well as other cities throughout the U.S.
"We're excited to partner with management at Reliable Residential and to work with Neighborly to continue expanding the Precision Garage Door Service franchise," said Michael Esposito, Founding Partner of Franchise Equity Partners. "This partnership positions us to work alongside the premier franchisor in residential services. We look forward to supporting management and Neighborly as they implement a growth strategy that will help build the presence of Precision Garage Door Service and other Neighborly brands in attractive markets across the U.S."
The leading garage door franchise with more than 100 locations nationwide, Precision Garage Door Service was acquired by Neighborly in 2020 and has grown considerably under the home services company's vision. Precision Garage Door Service has a clear competitive advantage due to lead generation, technology, inventory, sales processes, speed to service customers, and the ability to attract talent. FEP will now help the brand and its largest franchisee expand further.
"A core pillar of our growth strategy is finding the right owners for our brands to grow with us, and we've done just that with the team at Franchise Equity Partners," said Jon Shell, interim Chief Executive Officer, Neighborly. "The investment being made by FEP to acquire our largest franchisee within one of our largest brands reaffirms the strength of our system and growth potential across our entire Neighborly portfolio."
FEP's investment in Reliable Residential is the company's eighth since its inception in November 2021, and first in residential services. The latest investment is consistent with FEP's differentiated strategy of partnering with quality franchise operators to provide the capital and resources necessary to create scale and maximize efficiency.
"Choosing a value-added partner was critical as we look to expand and provide our services to more customers across the country," said Carlos Morales, President, Precision Garage Door Service of Tampa Bay.
"FEP understands franchise businesses and the unique challenges and opportunities. We've set a solid foundation and now look forward to FEP's partnership with management as we continue to grow the business."
Tim Miller, an executive with more than 20 years' experience in franchise services and former Chief Financial Officer of TBC Corporation, will serve as Non-Executive Chairman of Reliable Residential.
MidCap Financial provided debt financing for the transaction. Davis Wright Tremaine LLP served as legal counsel to FEP. Macfarlane, Ferguson & McMullen PA provided legal advice and Boxwood Partners provided representation for the seller.
