Financial Analysis

Commitments and Contingencies The Company is subject to various lawsuits, administrative proceedings, audits, and claims. Some of these lawsuits purport to be class actions and/or seek substantial damages. The Company is required to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. The Company regularly assesses the Companys insurance deductibles, analyzes litigation information with the Companys attorneys, and evaluates the loss experience in connection with pending legal proceedings. The Company records its 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, the minimum estimated liability related to the lawsuit or claim is recorded. As additional information becomes available, the potential liability and the Companys accruals are reassessed, if necessary. Legal fees and expenses associated with the defense of all of the Companys 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 the Companys 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 Weste …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Long-Term Debt Our long-term debt obligations consist of the following: (in thousands) March 28, 2026 December 27, 2025 Series 2019-2 Securitization Senior Notes, Class A-2 $ $ 251,508 Series 2020-1 Securitization Senior Notes, Class A-2 80,894 161,331 Series 2020-2 Securitization Senior Notes, Class A-2 415,923 417,048 Series 2021-1 Securitization Senior Notes, Class A-2 419,216 420,341 Series 2024-1 Securitization Senior Notes, Class A-2 270,188 270,875 Series 2025-1 Securitization Senior Notes, Class A-2 497,500 498,750 Revolving Credit Facility 140,000 Other debt (a) 27,729 28,582 Total debt 1,711,450 2,188,435 Less: debt issuance costs (25,251) (28,961) Less: current portion of long-term debt (25,363) (276,691) Total long-term debt, net $ 1,660,836 $ 1,882,783 (a) Amount primarily consists of finance lease obligations. See Note 7 . Series 2019-2 Securitization Senior Notes In September 2019, Driven Brands Funding, LLC (the Issuer) issued $275 million Series 2019-2 Securitization Senior Secured Notes (the 2019-2 Senior Notes), which bore a fixed interest rate of 3.981% per annum. The 2019-2 Senior Notes had a final legal maturity date in October 2049 and an anticipated repayment date in October 2026. The 2019-2 Senior Notes were secured by substantially all assets of the Issuer and were guaranteed by Driven Funding HoldCo, LLC and subsidiaries (the US Securitization Entities). The Company capitalized $6 million of debt issuance costs related to the 2019-2 Senior Notes at …

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Share-based Compensation All activity and amounts reported in this footnote include both continuing and discontinued operations, unless otherwise noted. For information relating to the divestiture of the Companys car wash businesses, refer to Note 12 . Annual equity grants, including restricted stock units (RSUs) and performance stock unit (PSUs), which have historically been awarded in the first quarter of the fiscal year, have not been awarded as of March 28, 2026. The Company granted new awards during the three months ended March 28, 2026, consisting of 13,450 RSUs. During the three months ended March 29, 2025, the Company granted 541,052 RSUs and 664,383 PSUs. Awards are eligible to vest provided that the employee remains in continuous service on each vesting date. RSUs typically vest ratably over a period of one to three years from the grant date. The PSUs generally vest after a three-year performance period. The number of PSUs that vest is contingent on the Company achieving certain performance goals specified in the award agreement, typically, one goal is a performance condition and the other is a market condition. The number of PSUs that may vest range from 0% to 200% of the original target grant, based upon the level of performance. Certain awards are considered probable of meeting vesting requirements, and therefore, the Company has started recognizing expense. For both RSUs and PSUs, the award agreements generally provide that if the grantees continuous service ter …

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Income Taxes The Companys 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 $9 million for the three months ended March 28, 2026 compared to an income tax expense of $5 million for the three months ended March 29, 2025. The effective income tax rate for both periods is greater than the U.S. federal statutory rate of 21% primarily due to non-deductible share-based compensation and U.S. state and local income taxes. …

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Leases During each of the three months ended March 28, 2026 and March 29, 2025, the Company sold four Take 5 properties for a total of $7 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 20 years and provide the Company with the option of extending the lease for up to 20 additional 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 operating lease right-of-use assets and operating lease liabilities of $5 million as of March 28, 2026 and March 29, 2025 related to these lease arrangements. The Company recorded gains of less than $1 million for each of the three month periods ended March 28, 2026 and March 29, 2025. Supplemental cash flow information related to the lease arrangements were as follows: Three Months Ended (in thousands) March 28, 2026 March 29, 2025 As Restated Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 20,897 $ 19,301 Operating cash flows used in finance leases 732 307 Financing cash flows used in finance leases 1,663 1,286 Right-of-use assets obtained in exchange for lease obligation: Operating leases $ 34,115 $ 21,542 Finance leases 841 385

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Recently Adopted Accounting Standards In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). This ASU provides a practical expedient permitting entities to assume current conditions (as of the last balance sheet date) remain unchanged over the remaining life of current accounts receivable and current contract assets. The new standard is effective for annual periods beginning after December 15, 2025, with early adoption permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company adopted ASU 2025-05 effective December 28, 2025 on a prospective basis and elected the practical expedient. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB subsequently issued ASU 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03. ASU 2024-03 includes amendments that require entities to bifurcate specified expense line items on the income statement i …

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Segment Information In the fourth quarter of 2025, as a result of the announcement of the sale of ICW and the related results reflected within discontinued operations, the Company re-evaluated its operating segments, which resulted in a change to the reportable segments. As of the fourth quarter of 2025, the Company has the following reportable segments: Take 5, Franchise Brands, and Auto Glass Now. The Take 5 segment is primarily composed of Take 5 Oil. Take 5 Oil services a combination of retail and commercial customers, such as fleet operators. Take 5 Oils services include oil changes as well as certain as-needed automotive maintenance enhancements, including differential fluid exchanges, coolant services and air and cabin filters. The Take 5 segment also includes supply and other revenue and franchise royalties and fees. The Franchise Brands segment is primarily composed of the Companys portfolio of franchise brands, which include: Meineke, Maaco, CARSTAR, ABRA, Fix Auto, 1-800 Radiator, Uniban, Automotive Training Institute (ATI), along with other smaller brands and services for retail, commercial, and insurance customers. The Franchise Brands segment also includes supply and other revenue, and company-operated store sales. The Auto Glass Now segment provides auto glass repair, replacement, and calibration services to commercial, retail, and insurance customers within the U.S, as well as third party administration and claims management services to commercial and insuranc …

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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 months ended March 28, 2026 and March 29, 2025 each consisted of 13 weeks. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. 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, considered necessary for the fair statement of the results of operations, balance sheet, cash flows, and shareholders 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. The consolidated balance sheet at December 27, 2025 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The accompanying interim consolidated financial statements should be read in c …

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