FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for CARSTAR.
Based on 2025 FDD · 4 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a CARSTAR franchise shows an estimated initial investment of $24K – $804K. Reported owner economics show $217K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $10K franchise fee · 6.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
CARSTAR requires a total initial investment of $24K to $804K (midpoint approximately $414K), with an initial franchise fee of $10K. The ongoing fee burden is 6.5% (5.5% royalty plus 1% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for CARSTAR locations is $2.6M. The implied franchisee EBITDA is approximately $217K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 52.4% with a payback period of approximately 1.9 years.
CARSTAR operates approximately 455 franchised units. The brand is growing, with a 3.6% net unit increase year-over-year, indicating franchisee demand and system health. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2016-2026). 44 loans across 18 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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