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Carstar

Information based on 2024 FDD
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Brand Highlights
  • Founded in 1989
  • Franchising Since 1989
  • 455 US Franchises
  • $23,500 - $165,300 Investment Range
  • $3,034,922 Average Gross Revenue
  • 1.5%/mo Royalty Fee
  • $10,000 Franchise Fee
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Brand Description

CARSTAR has established itself as a leading force in the automotive repair industry since 1989, building a reputation for excellence in collision repair and customer service. As North America's premier network of independently owned and operated auto body repair facilities, CARSTAR combines the personal touch of local ownership with the resources and standards of a national brand.

The franchise stands out for its comprehensive approach to auto repair, utilizing state-of-the-art technology and certified technicians to restore vehicles to their pre-accident condition. CARSTAR's commitment to quality is evident in their consistent positive customer reviews, which frequently highlight their attention to detail, transparent communication throughout the repair process, and exceptional customer service.

What sets CARSTAR apart is their dedication to both technical excellence and customer experience. Their facilities offer a complete range of services, including collision repair, dent removal, paint services, and framework restoration. The brand maintains strong relationships with major insurance companies, helping to streamline the claims process for customers during what can be a stressful time.

Each CARSTAR location benefits from the franchise's extensive training programs, nationwide warranty coverage, and established operational systems. The brand's focus on continuous improvement and adaptation to new automotive technologies ensures they stay ahead in an evolving industry. For entrepreneurs looking to enter the automotive repair sector, CARSTAR offers a proven business model backed by decades of experience and a commitment to excellence in every aspect of their operation.

DID YOU KNOW?

How much does it cost to start a franchise with Carstar?

$23,500
$165,300
Did you know that launching your own Carstar collision repair franchise - one of North America's most trusted auto body shop brands - requires a total investment between $23,500 and $165,300, which includes the $10,000 franchise fee plus all the equipment, training, and startup costs needed to get your automotive repair business serving customers and restoring vehicles to pre-accident condition?
Financial Summary
Franchise Fee
$10,000
Investment Range
$23,500 - $165,300
Investment Midpoint
$94,400
Minimum Cash Required
$23,500
Royalty Fees
1.5%/mo
Brand Fund
1%/mo
Brand Bragging Rights
Outstanding revenue performance: $3,034,922 gross revenue
Outperforms sub-sector average by 170% in revenue generation
35+ years proven franchise system since 1989
80+ insurance provider partnerships established
24/7 customer support infrastructure with 1-800-CARSTAR
Low investment barrier with high revenue potential
Financial Analysis
CARSTAR presents an exceptionally accessible entry point with investment requirements of $23,500-$165,300, positioning it as a premium entry-level opportunity within the automotive repair sector. This investment level sits significantly below sub-sector averages of $250,455-$847,467, making it attractive for emerging entrepreneurs seeking established brand recognition without substantial capital barriers.

The franchise demonstrates outstanding financial performance with gross revenue of $3,034,922, which dramatically exceeds the sub-sector average of $1,123,934 by 170%. This exceptional revenue performance, combined with low investment requirements, creates an attractive return potential for qualified investors.

The collision repair industry benefits from recession-resistant fundamentals, driven by consistent vehicle accident rates and increasing vehicle complexity requiring specialized repair expertise. CARSTAR's focus on insurance partnerships with over 80 providers creates predictable revenue streams through Direct Repair Program relationships, reducing customer acquisition costs.

With 455 active units and 35+ years of operation since 1989, CARSTAR demonstrates substantial system maturity and operational refinement. The investment structure appears well-suited for semi-absentee or owner-operator models, though collision repair requires technical expertise or qualified management. Ideal investors should possess $50,000-$75,000 liquid capital with automotive industry experience or strong operational management backgrounds.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like Carstar. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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CRF USA

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First Bank of the Lake

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Golden Capital Solutions

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Location Analysis
Carstar demonstrates strong market presence with widespread coverage across multiple states, showing particular concentration in the Northeast and West Coast. The brand maintains significant market share in New York, while California, Washington, Illinois, and Missouri all show notable presence. This distribution suggests successful penetration in both high-density urban markets and mid-sized metropolitan areas.

The franchise's impressive 4.6 average rating across numerous customer reviews indicates consistent service quality and strong operational standards across regions. This high satisfaction rate particularly stands out in the competitive auto repair industry, where trust and reliability are crucial factors.

Market opportunities exist in several states currently without Carstar presence, particularly in growing Southern markets. Ideal locations typically include areas with high vehicle ownership rates, substantial commuter populations, and proximity to major transportation corridors. Success factors include locations in commercial zones with high visibility, easy access from major roadways, and demographics showing median household incomes above $50,000.

Prospective franchisees should focus on metropolitan areas with growing populations and aging vehicle fleets, particularly in underserved markets within states that already have proven Carstar success. The strong Northeast presence suggests particular expertise in markets with severe weather conditions and higher vehicle maintenance needs.
Total US Locations455
Open Franchises455
Corporate Locations0
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind Carstar. Learn about the experience and expertise of the executive team guiding Carstar's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving Carstar. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review Carstar's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about Carstar's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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