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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
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
Franchise Stats
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 to Other Business Services Franchises
Key Insights
- Lower investment than 88% of Business Services franchises
- Higher than average SBA loan default rate in Business Services
| Franchise | Investment Range | Franchise 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 187 franchises | $118K - $285K | $46K | 10.4% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 187 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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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)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Carstar franchise?
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.
How much revenue does a Carstar franchise make?
According to the 2025 FDD, the average gross revenue for a Carstar franchise is $3,205,928. The median revenue is $2,579,601.
How many Carstar franchise locations are there?
As of the 2025 FDD, Carstar has 471 franchise locations. The company has been franchising since 1989.
Can you get an SBA loan for a Carstar franchise?
Yes, SBA loans are available for Carstar franchises. Historical data shows 60 SBA 7(a) loans have been approved for Carstar franchisees, with an average loan amount of $1,046,935. The historical default rate is 0.0%.
Is Carstar a good franchise to buy?
Carstar shows several positive indicators: established brand with 471+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in Carstar?
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