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The Real CARSTAR Franchise Cost

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Many prospective franchisees consider an auto service because of the demand for repairs and general automotive services. With over hundreds of millions of vehicles in the United States, an automotive service could address any issues and challenges consumers face. With that said, one of the many services that franchisees keep in mind is CARSTAR.

So, in this article, know more about the franchise and the CARSTAR franchise cost to get you started.

CARSTAR Franchise Overview

CARSTAR started its operations in 1989 and began franchising in the same year. They celebrated a significant milestone in 1994 when they expanded operations in Canada by setting up centers there. And in 2013, Driven Brands acquired CARSTAR. Other Driven Brands companies include Meineke, MAACO, and ABRA Auto Body Repair of America.

To date, there are 700 stores in 35 states and 10 Canadian provinces.

Here are the services offered by CARSTAR:

  • Auto-Body and Auto Collision Repair
  • Paintless Dent Repair
  • Hail Damage Car Repair
  • 24/7 Accident Assistance
  • Fleet Services

They guarantee a national warranty on several repairs and services. Moreover, they ensure that they have qualified technicians ready to work on any repair that comes to their store. Their technicians are I-CAR and OEM certified. This gives them an advantage over other automotive services. Plus, it will ensure they provide high-quality services at fast speeds.

So far, CARSTAR has locations in some of these states:

  • California
  • Massachusetts
  • New Jersey
  • New York
  • Texas

Despite their growing numbers, CARSTAR faces competition from Service King Collision, Fix Auto, and Collision Works, among many others.

So, if you’re interested in starting a CARSTAR franchise, you can start by filling out this form. Then you’ll receive a franchise disclosure document that you can review. Then, you’ll have to attend discovery day, and if you’ve decided, you can sign the franchise agreement (FA).

CARSTAR finds that most of their franchises have a 20.20% revenue increase from the first up to the second year.

Before discussing the CARSTAR franchise cost, know what to expect when franchising the automotive service chain.

Training

A franchisee will designate a training administrator. This will then allow them to receive training materials from CARSTAR Franchisor SPV LLC (the franchisor) via the CARSTAR-U. The CARSTAR-U is their online training program. The training administrator can access their resources anytime. The franchisor requires the franchisee or the general manager to attend the mandatory initial training program; this training lasts for 2.5 days. Topics covered by the orientation are:

  • Operations
  • CARSTAR Facility image
  • Customer service
  • Purchase procedures
  • Productivity reporting
  • CARSTAR Communications

Territory and Obligations

The franchisee can only operate in the territory granted by the franchisor. Apart from that condition, other franchisees or affiliates may not set up another CARSTAR franchise in a one-mile radius in an existing franchise. However, that may be subject to change depending on some factors.

The franchisor grants an initial 10-year term to all franchisees. However, if a franchisee is interested in renewing, they can do so, so long as they’re not in default under the FA. Plus, they should also fulfill any provision related to renewal. If they meet the criteria, the franchisor will grant an additional 10-year term.

Franchisees should remember to manage the facility and business. But a general manager should dedicate their time to managing and operating the business. Franchisees must keep in mind to sell only authorized products and services that the franchisor has allowed. Any unauthorized goods and services may not be permitted.

CARSTAR Franchise Cost

The initial CARSTAR franchise cost ranges from $298,200 to $804,300. The initial cost includes training, inventory, and signage. At the same time, some other fees will consist of annual training, monthly franchising, and insurance and marketing fees.

The franchisor doesn’t offer any financial assistance, direct or indirect. They also don’t guarantee any loans or obligations.

Check the tables below for the initial franchise cost and other costs associated with opening a CARSTAR franchise.

Your Investments

Name of FeeLowHigh
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 Costs

Type of FeeAmount
Monthly Franchise Fee
Monthly base franchise fee. It is greater of $1,000 or 1.5% of gross sales. Plus monthly growth franchise fee, which is 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 Fee
Greater of $500 or 1% of monthly gross sales. This fee increases to 1.5% if franchisees are not in compliance with IMF guidelines. Or fail to maintain the franchisor’s image program. Or 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 FeesOne-time $1,800 installation and training fee on new installations. Additional fees dependent on option the franchisee chooses.
CCC One Perform with Mitchell Repair Center Management and Estimation System Fees$599 base fee for one user plus $33 for each additional user. There is a one-time $400 installation and training fee on new installations. MRC is an additional cost of $345 per month for 1-5 users, plus a one-time $3,450 set-up and training fee.
Central Review Fee0.5% of all gross sales generated by corporately-managed insurance programs that require CARSTAR central review oversight.
Renewal Fee $5,000 
Supplemental Training
$45 to $150
Resale Assistance Program Fee
$6,000
Audit
Cost of audit. This includes the charges of any independent accountant and attorneys’ fees, and per diem fees. Other costs include 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.
CARSTARUSA.com E-mail Address Fee
$10 per month per additional e-mail address after the first e-mail address.
New or Additional Fees
TBD

Did You Know?

  • They rank 120 in the Entrepreneur Franchise 500 2020 Ranking. They also secured a place in the 2018 and 2019 list. For 2019, they were 96, while in 2018, they were 255. Aside from the Entrepreneur list, they also bagged a spot on the FranchiseTimes Top 200+. They’re number 92 on that list.
  • They raised $2 million for the Cystic Fibrosis Foundation in 2012. They chose the foundation back in 1997. Besides partnering with the Cystic Fibrosis Foundation, they have also partnered with the National Auto Body Council and the Women’s Industry Network.
  • CARSTAR reached one of its most significant milestones in 2018 and 2019. They opened their 600th and 700th stores, respectively.
  • Customers can avail the Driven Brands Credit Card. In doing so, they can go to any CARSTAR store to apply. This can ease their expenses on any service that CARSTAR provides. They have two financing partners: Synchrony Financial and Easypay Finance.
  • A Franchise Development Director will act as a franchisee’s primary contact during the franchising process. So far, five directors handle different states.

Get more franchise related resources by reading more information here in Franchise How!

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The Rise of Paris Banh Mi Franchise

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paris banh mi restaurant exterior

Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida. 

But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .  

About Paris Banh Mi

paris banh mi homepage

The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.

The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen, a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience. 

The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now,  Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.

In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the  county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA. The company plans to expand to 100+ locations by 2026. 

Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.

paris banh mi sandwiches

Source: Paris Banh Mi website

For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.

paris banh mi French pastries

Source: Paris Banh Mi website

Why Own a Paris Banh Mi Franchise

Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:

  • It opens a great opportunity and is more profitable. 
  • Seamless franchising process and fewer things to worry about
  • Required low capital to open
  • Higher end-of-year profits

The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises. 

The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option. 

Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.

Licensing Information

Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.

You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are: 

  • Passionate about food, especially fresh baguettes and pastries
  • A self-starter with a proven track record in business
  • Financially responsible with a focus on results
  • Ready to fully commit to building the Paris Banh Mi brand

If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page

Conclusion

Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product.  If you are ready to take a bite out of success, contact Paris Banh Mi today!

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Chick-fil-A Franchising Opportunities in 2024

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chick fil a store

Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024. 

Company Overview

chick-fil-a logo and founder

Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today. 

Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States. 

Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946. 

Franchise Training Details

  • The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary. 
  • The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing. 
  • The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
  • The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement. 

Franchise Territory

chick-fil-a logo
  • The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location. 
  • Franchisees will not get exclusive or protected territory, so they may face competition from other operators. 

Franchise Obligations and Conditions

  • Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant. 
  • The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck. 

Franchise Term and Renewal

The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires. 

Financial Assistance

  • The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location. 
  • The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
  • The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.

Did You Know?

Here are some fun facts about Chick-fil-A you need to know!

  • Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
  • The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year. 
  • Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff. 
  • You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal. 

Franchise Cost

Your Investment

Name of FeeLowHigh
Initial Franchise Fee$10,000$10,000
Opening Inventory$13,500$140,000
First Month’s Rental of Equipment$750$5,000
First Month’s Lease/Sublease of Premises$2,550$85,500
First Month’s Insurance Expense$240$12,000
Additional Funds$491,345$2,550,935
ESTIMATED TOTAL$518,385$2,803,435

Other Fees

Type of FeeAmount
AdvertisingMay vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of gross receipts or (b) by vote of operators in local or regional areas.
Advertising Support and Services Fee Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable. 
Additional Franchise Fee$5,000 for each additional Chick-fil-A restaurant business.
Business Services Fee$300 (monthly).
Rent (Traditional Restaurant)$2,550 to $85,500 (including where applicable, percentage rent).
Occupancy Charge (Satellite Unit) Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 4% and 30% of gross receipts.
Food Truck Usage Fee (Food Truck) Currently $2,100 to $3,100, plus additional fees, costs and expenses.
Food Truck Insurance Fee (Food Truck) Currently $250 to $450 (monthly).
Insurance$240 to $12,000 (monthly).
Equipment RentalCurrently $750 to $5,000 (monthly).
Hardware and Software Support; High-Speed Internet Access$9,500 to $20,000 (annually).
Fines – Minimum Standards and ProceduresWill vary under the circumstances.
IndemnificationWill vary under the circumstances.
Operating Service ChargesDetermined by formula.
Credit Cards Fees and Related Processing FeesWill vary.
Highway SignageWill vary under circumstances.
Interest on Late PaymentsThe maximum rate permitted by law, or if none, 1.25% per month.
Cash Handling System Services$85 to $450 (monthly)
Reimbursement of Cost of PerformanceCosts and expenses of performance.
Holdover Liquidated DamagesDouble the base rent and percentage rent.

Here are the Chick-fil-A franchise costs:

If you’re looking for another investment opportunity, visit Franchise How’s website for more information. 

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Zoom Sewer and Drain Cleaning Franchise Cost

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Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:

Franchise Description

Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.

Training

Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:

  • Phase 1: 2 to 3 days training at the Franchise Business
  • Phase2: 2 to 3 days in Norristown, PA

The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.

Territory

The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory. 

The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.

Obligations

The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.

Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.

Term of Agreement

The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.

Financial Assistance

Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.

Did You Know?

Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:

  • They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
  • According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
  • They have a reported $12 million in revenue with 53 employees and 15 franchisees 

Your Investment

The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.

Name of FeeLowHigh
Initial Franchise Fee$35,000$35,000
Lease$3,000$9,000
Leasehold Improvement$2,000$40,000
Furniture, Fixtures and Computer System$7,500$13,000
Vehicles$7,000$9,500
Vehicle Wrap and Design$4,500$5,500
Initial Equipment and Inventory of Supplies$40,000$50,000
Business Licenses and Permits; Deposits and Pre-Paid Expenses$0$5,000
Professional Fees$500$3,000
Insurance – Quarterly$4,000$6,000
Initial Training Expenses$500$3,000
Initial Marketing Expenses$45,000$60,000
Additional Funds – 6 months$50,000$100,000
ESTIMATED TOTAL$199,000$341,000

Other Costs

Type of FeeAmount
Royalty Fee5% of Net Sales.
Marketing FeeUp to 2% of Net Sales. Currently, the franchisor does not charge this fee.
Call Center FeeUp to $25 per scheduled appointment. Currently, the franchisor does not operate the Call Center or charge a Call Center Fee.
Technology Fee The then-current Technology Fee; currently $500 per month. 
Webpage Development and Optimization Fee The then-current fee charged by the franchisor’s designated website SEO provider; currently $695 per month. 
Additional Location Fee The then-current Additional Location Fee; currently $2,000. 
Transfer FeeUp to 50% of the then-current Initial Franchise Fee.
Renewal FeeUp to 25% of the then-current Initial Franchise Fee.
Additional Training and AssistanceFee and all expenses. Currently $1,000 per day plus travel expenses.
National Conference Reasonable fees and all expenses. 
Testing for Supplier ApprovalReasonable fee.
Interest on Late PaymentsLesser of 1.5% per month or maximum legal rate.
Audit FeeCost of audit.
TaxesActual cost.
IndemnificationWill vary under circumstances.
Costs and Attorneys’ FeesWill vary under circumstances.

For other franchising information, check out more articles here at Franchise How!

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