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Below is an in-depth analysis and side-by-side comparison of Car-X Auto Service vs CARSTAR including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $214,000 - $326,000 | $298,200 - $804,300 |
Franchise Fee | $25,000 | $20,000 - $30,000 |
Royalty Fee | 5% | 1.5% |
Advertising Fee | - | 1% |
Year Founded | 1971 | 1989 |
Year Franchised | 1973 | 1989 |
Term Of Agreement | 15 years | - |
Term Of Agreement | 15 years | - |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | Available at headquarters, Available at franchisee's location | On-The-Job Training: 12 hours Classroom Training: 20 hours Additional Training: Regional training, 1-2 days; Ongoing training at franchisee's location as needed |
Support | Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Ad slicks, Regional advertising | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing |
Operations |
58% of all franchisees own more than one unit Number of employees needed to run franchised unit: 5 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | Absentee Ownership Allowed Number of Employees Required to Run: 8 - 9 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | Yes |
International Expansion | No | - |
Car-X franchise owners have the freedom to run their own businesses while sharing the resources of a proven and trusted brand with almost 50 years of experience. Advantages of joining the Car-X Family include (but are not limited to):
CARSTAR is a champion of the independent collision repair operators, consequently, CARSTAR is the largest automotive collision repair franchise in North America. The well publicized industry dynamitics: declining repair opportunities, acceleration in shops being de-selected from Insurance referral programs, excess repair capacity, increased competition from Multi-Shop Operators and Consolidators, and scarcity of skilled labor, has changed how the Independent Collision Repair Operator needs to conduct business. The CARSTAR Franchise program offers many solutions to these and other issues in which you and your business may be facing. We believe we are the champion for quality Independent shops, providing effective training solutions, staying involved in National and Local Industry Associations and developing sale and marketing programs to help our Franchisees compete in this turbulent market.