Carstar

Item 7 in the 2025 FDD details a wide investment spectrum: $23,500 minimum for conversion franchises up to $804,300 for ground-up builds, with the core initial range pegged at $23,500-$165,300 including the $10,000 franchise fee. Ongoing costs layer complexity—royalties are the greater of $1,000 monthly or 1.5% on base volume plus 4% on growth sales, paired with a 1% brand/ad fund (minimum $500/month), plus $1,295-$1,545 monthly software fees, $299 annual training, and $845 yearly conference dues. Item 19 shines brightly: average gross revenue hits $3,205,928 with a median of $2,579,601, signaling strong top-line potential driven by insurance, commercial, and retail clients, though profitability hinges on operational scale and cost discipline.

System vitality shows steady expansion from 455 locations in 2023 to 475 in 2024 (+4%), with 44 projected new units, 16 transfers, just 1 non-renewal, but 31 terminations signaling some churn. SBA financing supports 60 loans averaging $1,046,935, easing entry for qualified buyers. Litigation centers on franchisor pursuits for unpaid fees, early closures, and non-compete breaches, with minimal franchisee pushback—a stable but demanding ecosystem where conversion plays minimize risk and accelerate revenue ramps.