FRANCHISE·WATCH·DESK

ITEMS 5–7 · 2025 FDD

How much is a Carstar franchise?

Per Carstar's 2025 FDD, the initial franchise fee is $10,000 (Item 5) and the total initial investment runs $24K–$165K (Item 7).

Franchise fee · Item 5

$10,000

one-time, to buy in

Total investment · Item 7

$24K–$165K

franchisor's own estimate

Carstar vs automotive medians27 systems benchmarked
Cost lineCarstarSector median
Initial franchise fee ITEM 5$10,000$37,500
Total initial investment ITEM 7$24K–$165K$235K–$786K

MEDIANS: LATEST FDD FILINGS (≤24 MONTHS OLD) OF 27 AUTOMOTIVE SYSTEMS · FULL AUTOMOTIVE BENCHMARK →

Breakeven framingwhat it costs · what it drags

The buy-in is the smaller number. The larger one is the drag: royalties and fees leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD; use the Item 19 figures as a starting point, not a promise.

To open (Item 7)

$24K–$165K

all-in investment range

Franchise fee (Item 5)

$10,000

upfront, one-time

Royalty (Item 6)

See Item 6

not a single flat % — read the fee table

This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).

Build a real pro-forma for Carstar with a buyer-paid CPA

Carstar cost questions, answered from the filing

How much is a Carstar franchise?

Per Carstar's 2025 FDD, opening a franchise requires an initial franchise fee of $10,000 (Item 5) and a total initial investment of $24K–$165K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.

Does Carstar tell you what franchisees earn?

Partly — Carstar makes a financial performance representation in Item 19 of its 2025 FDD. Unit revenue is not owner profit: subtract royalties, ad fund, rent, labor, and debt service.

The Carstar validation checklist

questions built from this brand's own filings · read them all on the profile

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Before you sign anythingfree · 30 min · no commission

A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Carstar’s numbers, including talking you out of a bad deal.

Don Drummond, CPA — Virginia #43775 · what I charge

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