Carstar
CARSTAR franchises automobile collision repair facilities that utilize distinctive trademarks, regional marketing, preferred vendor relationships, and business and financial analysis tools. The business model offers both conversion franchises for existing repair shops and new ground-up facilities, with total investments ranging from $23,500 to $804,300 depending on the type. Services are provided to the insurance industry, commercial accounts, and individual automobile owners.
Franchise Costs
Tiered royalty (greater of $1,000/mo or 1.5% of base volume + 4% of growth sales) + greater of $500/mo or 1% insurance & marketing fund + $1,295-$1,545/mo software + $299/yr training + $845/yr conference
Financial Performance
Item 19 Financial Performance
Data Based On: 397 franchised CARSTAR Facilities open and operating as of the end of the 2024 Fiscal Year, with data separated into top performing 50% and bottom performing 50% based on average Gross Sales for the 2024 Fiscal Year.
Extracted Item 19 Section
How Carstar Compares
Key Insights
- Lower investment than 88% of Business Services franchises
- Higher than average SBA loan default rate in Business Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Carstar Current | $24K – $165K | $10K | 4.0% | 471 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
| SERVPRO (UNIT) | $259K – $380K | $100K | 10.0% | 2,286 |
Business Services Average 188 franchises | $118K – $284K | $46K | 10.4% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 188 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+26 more states
SBA Loan History
Historical SBA 7(a) loan data for Carstar franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
634 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
634 Contacts Available
Unlock all Carstar franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Primarily breach of contract actions by franchisor against former franchisees for unpaid amounts, early closure/abandonment, and post-term noncompetition covenant violations; one counterclaim action stemming from former franchisee's wrongful termination claim.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a Carstar franchise ranges from $23,500 to $165,300. This includes a franchise fee of $10,000. Ongoing royalty fees are 4.0% of gross sales.
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