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2022 Franchise 500 Rank
#193 Ranked #164 last year
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Initial investment
$298K - $804K
Units as of 2021
719 19.0% over 3 years

Here’s what you need to know if you’re interested in opening a Carstar franchise.

Carstar is one of the largest premier networks of collision repair businesses with more than 650 locations throughout the U.S. and Canada. This dynamic franchise offers independent franchisees resources and support to become competitive in the vehicle repairs industry.

With Carstar, you may find yourself to be a part of a franchise network of partners that are committed to serving collision repair customers as well as their communities. The franchisor works hard to ensure its franchisees the best chance at development.

Carstar helps repair shop franchisees, many of which are family-owned businesses, become well-equipped and instantly identifiable and accessible while using sophisticated management systems. New players may find it easy to penetrate their market territory and become competitive.

Why You May Want to Start a Carstar Collision Repair Franchise

Carstar concentrates on five tactical activities for your new or converted auto repair franchises. These areas usually include your store's image, consumers or vehicle owners, insurance provider relationships, public relations, and advertising for further recognition. The franchisor’s plan for your business may vary depending on your existing auto body shop condition when you join the program. However, specific goals are typically set with a particular period to accomplish them. This may be a feasible task if you follow Carstar's explicit direction.

As a franchisee, you may be getting the benefits of Carstar's past service to their communities. With Carstar, your business may weather the industry changes and legal regulations that make the segment overly challenging. Instead of selling to larger multi-shop operators or struggling to go at it alone, you may choose to join Carstar, a family of shops with resources, powerful partnerships, and ongoing support.

What Might Make a Carstar Collision Repair Franchise a Good Choice?

According to the franchise documents, in the first and second years of joining Carstar, your business may service the community and make a positive difference in their lives. You can utilize a regional system of marketing, business, financial analysis, and preferred vendor relationships to provide collision repair services to:

  • Individual automobile owners

  • Insurance provider-sponsored repairs

  • Commercial accounts

  • Institutions and state organizations

You may be operating in a Carstar territory that serves a large part of your community, and with a few exceptions, little or no competition for a one-mile radius. Besides that, you generally retain full control of your exercises and your business and facility management. 

Your franchise license usually lasts for ten years, and Carstar generally will renew them after that time if you wish to continue your business. Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you.

How Do You Start a Carstar Collision Repair Franchise?

After filling out a franchise inquiry form, you may review the Franchise Disclosure Document. Attending discovery day at Carstar's Charlotte, North Carolina headquarters is typically the next step. This discovery day is usually a meet and greet that involves first-hand showcases of how the collision repair franchise works. 

If you sign a franchise agreement, Carstar may commence training, which may involve converting your auto repair business into a Carstar franchise. The franchisor may help you debut by announcing and advertising your new or converted location for a grand re-opening.

Find Your Perfect Franchise

Company Overview

About Carstar

Industry
Automotive
Founded
1989
Parent Company
Driven Brands
Leadership
Michael Macaluso, CEO

Franchising Overview

Franchising Since
1989 (33 years)
# of employees at HQ
120
Where seeking

This company is seeking new franchisees worldwide.

This company is seeking new franchisees in the following US states: Alaska, Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Delaware, Hawaii, Maine, Rhode Island, Vermont, Wyoming

# of Units
719 (as of 2021)

Franchisor Information

Corporate Address
440 S. Church St., #700
Charlotte, NC 28202

Information for Franchisees

Here’s what you need to know if you’re interested in opening a Carstar franchise.

Financial Requirements & Ongoing Fees

Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee
$20,000
Initial Investment
$298,200 - $804,300
Net Worth Requirement
$500,000
Cash Requirement
$300,000
Royalty Fee
1.5%+
Ad Royalty Fee
1%
Term of Agreement
10 years
Is franchise term renewable?
Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing
Carstar has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training
32 hours
Classroom Training
16 hours
Additional Training
Regional training, 1-2 days; Ongoing training at franchisee's location as needed
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?
Yes
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
# of employees required to run
8-9
Are exclusive territories available?
No
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Franchise 500 Ranking History

Compare where Carstar landed on this year’s Franchise 500 Ranking versus previous years.

Stock History for Carstar

Ticker Symbol for Carstar: DRVN

Additional Rankings

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise by Entrepreneur Media. Our franchise listings and rankings are solely research tools you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise. That should include reviewing the franchisor's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees.
Updated: February 8th, 2021