Carstar Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$10,000
Investment required
$298,000 - $804,000
Royalty fee
5.50%

Carstar: A Leader in Collision Repair Services

Carstar is a prominent network of collision repair centers owned by Driven Brands, with its headquarters in Charlotte, North Carolina.

Established in 1989 by Lirel Holt, Carstar has become a respected name in the automotive sector.

Carstar franchises offer a comprehensive range of high-quality auto body repair services, including paintless dent repair, storm damage repair, vehicle detailing, accident assistance, and flexible financing options to meet various customer needs.

The chain began franchising in 1989 and has since grown into one of the largest networks of family-owned businesses. Today, Carstar has over 750 locations across the United States and Canada.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $10,000
Integration Fee $10,000
Facility $50,000 to $200,000
Furniture, Fixtures, Equipment $200,000 to $400,000
Computer Hardware/Software $9,000 to $27,000
Training $0 to $3,300
Initial Inventory $5,000 to $50,000
Signage $4,200 to $20,000
Additional Funds – 3 months $10,000 to $84,000
TOTAL ESTIMATED INITIAL INVESTMENT $298,200 to $804,300

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Number of units

2023
Franchised units

386

395

416

Company-owned units

2

2

14

Total units

388

397

430

Franchise Disclosure Document

Training 

Carstar offers an extensive training program for its franchisees, which includes several key components:

Initial Orientation Training Program: This essential program involves approximately 2.5 days of classroom training and 1 day of on-the-job training, held in Charlotte, North Carolina, or another designated location. It covers operational standards, Carstar facility image, purchasing procedures, vendor training, productivity reporting, and communication protocols with Carstar.

Additional Training: Based on the franchisee's experience, knowledge, and performance, additional training may be required. This may be necessary due to updates in procedures, processes, or technology within the system, or to fulfill requirements set by insurance companies for specific programs.

Online Courses via Collision University: Franchisees and their employees must complete online courses specified in the "EDGE Integration – Store Visit Guide" during their EDGE Integration period. The franchisee pays an annual training fee, which covers both technology/license fees and content development.

Specific Certifications and Compliance: Franchisees need to obtain certain certifications such as the I-CAR Gold Class certification and I-CAR Welding Qualified certification. They must also comply with the EDGE Performance Platform and participate in specific partnerships and programs.

Territory Protection

Franchisees of Carstar receive territorial protection for their designated development area. Throughout the term of the agreement, neither the franchisor nor its affiliates will grant a franchise for the operation of a Carstar facility to anyone else within that specified area.

This protection is maintained as long as the franchisee adheres to the development schedule and remains in material compliance with the terms of the agreement.

The territorial rights are specific to the designated development area. Outside of this protected area, the franchisor and its affiliates reserve the right to develop, operate, and license third parties to develop and operate any business under any name, including Carstar facilities, in any geographic location.

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