CARSTAR was made for the kind of entrepreneurs who take pride in precision, who thrive on getting it right, and who know that quality and reputation are everything in this business.
As one of North America’s largest and most respected collision repair networks, CARSTAR blends independent ownership with the full strength of a national brand. It’s a model that gives operators access to top-tier insurance relationships, advanced training platforms, and proven performance systems — all while keeping their name on the door and control in their hands.
If you already own a repair shop and are ready to grow, or you’re an experienced operator looking to invest in a business that’s resilient and trusted, a CARSTAR franchise could be the next major move in your career.
CARSTAR got its start back in 1989, built on a simple but powerful idea: help independent body shops survive and thrive in an increasingly consolidated industry. It was one of the first franchise models in the collision repair world — and it worked.
By linking small business owners under a shared brand and system, CARSTAR gave each franchisee the leverage of a national network while preserving the independence that makes local shops thrive. The result was a collision repair powerhouse — one that grew from a handful of locations into nearly 800 centers across the U.S. and Canada.
Today, CARSTAR is part of the Driven Brands family, the same group behind other automotive giants like Maaco, Meineke, and Take 5 Oil Change. Headquartered in Charlotte, North Carolina, CARSTAR benefits from Driven’s scale, technology, and collective buying power, but it still operates with the entrepreneurial spirit that made it a household name.
The company’s mission is straightforward: help franchise owners grow revenue, enhance efficiency, and maintain the highest repair standards in the industry. And for many operators, that mission translates into real financial lift. According to CARSTAR, newly converted shops see an average 30% revenue increase in their first year under the brand.
CARSTAR isn’t looking for passive investors. It’s built for hands-on operators and people with industry experience or a strong background in business management who are ready to lead from the floor.
To qualify, you’ll need to meet these general financial requirements:
Because many CARSTAR franchisees convert existing body shops, the franchise is open to operators who already have an established facility, team, and customer base. However, new-build locations are also available in select markets for qualified candidates.
Beyond the numbers, CARSTAR looks for franchisees who share its values — quality, integrity, and community service. The ideal candidate is someone who wants to grow, who sees value in structure and systems, and who’s willing to put in the work to make their business the best in their market.
Opening or converting to a CARSTAR shop is a six-figure investment, but one that comes with infrastructure, marketing, and operational backing few independents could match on their own.
Here’s a closer look at the estimated initial investment range:
| Expense | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Integration Fee | $10,000 | $10,000 |
| Facility (lease or improvements) | $50,000 | $200,000 |
| Furniture, Fixtures, and 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 | $298,200 | $804,300 |
Ongoing fees include:
While these startup costs can seem steep, they include full integration into a national network and access to major insurance carriers, fleet programs, technology platforms, and performance data that independent shops often can’t secure on their own.
Profitability in the collision repair industry depends on several key factors — market size, DRP access, and efficiency. CARSTAR doesn’t publish specific earnings figures in its FDD, but its model is designed to boost shop revenue and margins through systems that independent operators typically lack.
Franchisees benefit from:
In short, CARSTAR gives independent shops the infrastructure to scale without losing their autonomy. Many operators find that the franchise’s systems not only improve their financial results but also simplify operations and strengthen their brand reputation.
CARSTAR does not publicly disclose its franchise closure or failure rate. However, as part of Driven Brands, which operates hundreds of successful automotive franchises under multiple banners, the system benefits from strong operational stability and long-term brand equity.
As with any franchise, performance varies based on local competition, management skill, and adherence to the system. Potential franchisees should review the most recent Franchise Disclosure Document (FDD) and speak directly with current owners during the due diligence process for realistic insights into margins and ROI.
Because this isn’t just a business — it’s a community. CARSTAR franchisees are often second- and third-generation shop owners who’ve turned their family operations into scalable, sustainable enterprises.
Here’s what makes the model compelling:
For business-minded entrepreneurs, it’s a chance to join a network that values craftsmanship and community as much as profitability.
CARSTAR’s territory model is location-specific rather than exclusive. Each franchise operates from a single approved facility and enjoys a one-mile protection radius where no other CARSTAR center can open.
That may sound small, but in the collision repair business — where customer base is largely driven by insurance and referral volume — the focus isn’t just on geography, it’s on contracts and reputation. Franchisees benefit from regional support, shared insurance relationships, and local marketing initiatives without internal competition.
CARSTAR’s support is where it really shines. Here’s a snapshot of what’s included:
Together, these systems give franchisees the infrastructure of a national chain while keeping their independence intact.
Launching a CARSTAR franchise follows a structured, step-by-step process:
From inquiry to launch, most new franchisees take a few months to complete the process.
Launching a CARSTAR franchise requires solid financial footing — typically between $298,000 and $804,000 depending on your facility and market. That’s a serious investment, but it can also be a launchpad for long-term stability and growth.
That’s where Swoop comes in. Rather than juggling lenders or piecing together funding on your own, Swoop gives you a single platform to explore SBA loans, business acquisition financing, and working capital solutions — all tailored to the auto repair industry.
Whether you’re expanding your existing shop, buying new equipment, or covering startup costs for your first location, Swoop helps you compare loan options side-by-side so you can make smart, confident financing decisions.
If you’re ready to build a business with real traction, apply with Swoop today to check available business loans and funding options. With the right financing in place, your CARSTAR location could be the next standout name in your community — where customers drive in stressed and leave reassured.
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
Written by
Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia.
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