CARSTAR Franchise

Founded in 1989, CARSTAR has established itself as a leading name in the automotive repair industry. With its headquarters in Charlotte, North Carolina, CARSTAR has grown to over 760 units, offering automobile collision repair services under a well-recognized brand.

Franchise Overview

As a franchisee, you will manage a CARSTAR automobile collision repair facility. The franchise operates using a proven system that includes regional marketing, preferred vendor relationships, business and financial analysis, and services for the insurance industry, commercial accounts, and individual automobile owners.

Training and Support

• Access to Collision University for ongoing training.
• Mandatory initial orientation training program, which includes 2.5 days of classroom training and 1 day of on-the-job training.
• Additional training as required, based on experience and insurance program requirements.

Exclusive Territory Rights

Franchisees are granted a specified territory where no other CARSTAR facilities will be established within a one-mile radius under normal circumstances, providing you with a dedicated market area to grow your business.

Franchisee Requirements

• Strict management control over the facility and its operations.
• Full-time dedication from the general manager or another managerial personnel.
• Sales of approved products and services only.

Terms of Agreement

• Initial term: 5 years.
• Renewal options: Eligible for an additional 5-year term upon compliance and meeting renewal conditions.

Investment Details

Initial Investment

• Initial Franchise Fee: $10,000
• Integration Fee: $10,000
• Facility: $50,000 - $200,000
• Furniture, Fixtures, Equipment: $200,000 - $400,000
• Computer Hardware/Software: $9,000 - $27,000
• Training: $0 - $3,300
• Initial Inventory: $5,000 - $50,000
• Signage: $4,200 - $20,000
• Additional Funds (3 months): $10,000 - $84,000
• Estimated Total Investment: $298,200 - $804,300

Ongoing Fees

• Monthly Franchise Fee: Greater of $1,000 or 1.5% of gross sales plus 4% of gross sales for growth fee.
• Insurance and Marketing Fund Fee: Greater of $500 or 1% of monthly gross sales, increasing to 1.5% under certain conditions.
• Training Fee: $299 per year.
• Additional operational fees as applicable.

Financial Assistance

The franchisor does not offer direct or indirect financing nor guarantee your note, lease, or obligation.

Key Takeaways

• CARSTAR provides a reputable and reliable name in the automotive repair industry.
• Comprehensive training programs ensure you’re well-prepared to manage and grow your business.
• Exclusive territory rights offer a significant market advantage.
• Significant initial investment required, with detailed ongoing fees outlined for transparency.
• Potential for term renewals, promising long-term business prospects.

For more in-depth information and to see the full Franchise Disclosure Document (FDD), please download the full FDD or fill out the free information request form on this page.