CARSTAR Franchise Costs, Fees & FDD

Year Business Began: 1989

Franchising Since: 1989

Headquarters: Charlotte, North Carolina

Estimated Number of Units: 755

Franchise Description: The franchisor is CARSTAR Franchisor SPV LLC, a direct, wholly-owned subsidiary of Driven Systems LLC. The franchise offered is to operate an automobile collision repair facility identified by distinctive trademarks and service marks, including the name CARSTAR, and utilizing a system of regional marketing, preferred vendor relationships, business and financial analysis, providing services to the insurance industry, to commercial accounts, and to individual automobile owners.
Training Overview: The franchisor will provide the designated training administrator access to Collision University. The training administrator is most often the facility’s owner; however, another individual may be given proxy rights to manage the franchisee’s learning platform. Franchisees or their general manager (if the franchisee is an entity) must attend the initial orientation training program provided by the franchisor. Attendance at this initial orientation training program is a mandatory requirement for franchisees. The classroom portion of the initial orientation training program is approximately 2.5 days in length, and the on-the-job portion of the initial orientation training program is approximately 1 day in length. The training program includes discussions on operation standards, CARSTAR facility image, purchasing procedures, customer service, productivity reporting, communications with CARSTAR and other matters. Also, depending on the franchisee’s experience and knowledge, the franchisor may require franchisees and/or their personnel to participate in additional training. Additional training may also be necessary in order to meet requirements established by an insurance company in order to participate in particular programs.

Territory Granted: Franchisees may operate a franchised CARSTAR facility only at the location specified in the Franchise Agreement. Subject to the franchisee’s compliance with the Franchise Agreement and any other agreement the franchisor or its affiliates may have with the franchisee, during the Franchise Agreement’s term the franchisor will not establish another CARSTAR facility within a one mile radius of the CARSTAR facility (with certain exceptions).

Obligations and Restrictions: Franchisees must at all times retain and exercise management control over the facility and its business. The general manager (who may be the franchisee) or other managerial personnel must devote full time, energy, and best efforts to the management and operation of the facility. The facility may offer for sale only materials, supplies, equipment, products and services that display the licensed marks which the franchisor has approved for use or sale, and which are produced or provided by certain approved suppliers. Franchisees may not offer or sell at or from the facility any products or services that the franchisor has not authorized.

Term of Agreement and Renewal: The length of the franchise term is five years. If franchisees are not in default under the Franchise Agreement and comply with the renewal provisions of the Franchise Agreement, they may renew the franchise for an additional term of five years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$10,000	$10,000
Integration Fee	$10,000	$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 (for new facility)	$298,200	$804,300

Other Fees

Type of Fee	Amount
Monthly Franchise Fee	Monthly base franchise fee (greater of $1,000 or 1.5% of gross sales) plus monthly growth franchise fee (4% of gross sales). In certain markets and under certain circumstances, the franchisor may negotiate the percentage of the monthly franchise fee.
Insurance and Marketing Fund (IMF) Fee	Greater of $500 or 1% of monthly gross sales. This fee increases to 1.5% if franchisees (i) are not in compliance with IMF guidelines, (ii) fail to maintain the franchisor’s image program, or (iii) fail to timely submit monthly fee reports, until they comply with each of these requirements.
Non-Reporting Fee	$750 per month.
Training Fee	$299 per year.
CCC One Innovate Management and Estimation System Fees	If the franchisee chooses to use CCC One Innovate with CARSTAR Solution, $1,545 per month plus tax. One-time $1,800 installation and training fee on new installations (discounted to $495 for implementation only).
CCC One Perform Estimation System Fees	If the franchisee chooses to use CCC One Perform and Mitchell Repair Center management system with CARSTAR Solution: $1,295 per month.
Central Review Fee	Currently, 0.5% of all gross sales generated by corporately managed insurance programs that require the franchisor’s central review oversight.
Ongoing Training	Currently, the franchisor does not charge a training fee for any ongoing training that it may provide (except for access to web-based training), but it reserves the right to do so in the future.
Renewal Processing Fee	$1,000
Resale Assistance Program Fee	$6,000
Audit	Cost of audit, including the charges of any independent accountant and attorneys’ fees, and per diem fees and costs of the franchisor’s employees, related travel and lodging and other out-of-pocket costs, plus interest.
Interest	1.5% per month (or the maximum rate permitted by law).
Annual Business Conference	$845
Optional Marketing Programs	Varies per program.
CARSTAR.com E-mail Address Fee	$10 per month per additional e-mail address (after the first e-mail address).
Paint Surcharge	$3,000 for each month that franchisees use a supplier other than a preferred supplier for their requirements of paint for the facility.
Holdover Signage Fee	$3,500 per month.
Total Loss Processing Fee	The then-current fee for each total loss estimate request that the franchisor processes on the franchisee’s behalf, subject to increase upon 30 days’ prior written notice to franchisees.
Call Center Program Fee	The then-current fee, equal to a percentage of gross sales generated through DRPs, subject to increase upon 30 days’ prior written notice to franchisees.
New or Additional Fees	To be determined.

The above information has been compiled from the FDD of CARSTAR. Year of FDD: 2025.
Franchise Direct's Disclaimer