Car-X Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000
Investment required
$315,000 - $512,000
Royalty fee
2.5% to 5%

Car-X: A Leader in Automotive Repair

Car-X, based in Schaumburg, Illinois, is a well-known chain of automotive repair shops that offer a wide range of services including routine maintenance, oil changes, tires, brakes, and more.

Established in 1971 by a group of experienced muffler shop owners who initially focused on exhaust systems, Car-X has grown to become a significant entity in the automotive service industry. By 2020, the company expanded to include 95 franchised units and 57 company-owned locations.

Car-X is committed to excellence and embraces the latest technological advancements, reinforcing its status as a leader in the dynamic automotive repair market. It provides entrepreneurs with an attractive business opportunity, supported by comprehensive systems, a strong reputation, and a dedication to exceptional customer service.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Reservation Deposit $6,000 (One payment)
Initial Franchise Fee $25,000 (One or Two payments)
Equipment and Furniture $220,000 to $275,000 (One payment)
Signs $17,000 to $50,000
Inventory $12,000 to $18,000
Lease and First Month’s Rent $8,000 to $30,000
Miscellaneous Pre-Opening Expenses $1,200 to $4,000
Travel and Living Expenses While Training $5,000 to $10,000
Initial Advertising Fee $12,000 to $60,000
Additional Funds – 3 months $315,200 to $512,000
Total Estimated Initial Investment $315,200 to $512,000

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Number of units

2023
Franchised units

95

80

76

Company-owned units

57

68

69

Total units

152

148

145

Franchise Disclosure Document

Training 

Initial Training: The franchisor provides a comprehensive initial training program that covers the operation of the Franchise Business and the Car-X System. It is mandatory for a Principal of the Franchisee to attend and successfully complete this training before launching the franchise. While the training itself is free, the Franchisee is responsible for any associated expenses, including salaries, travel, food, and lodging costs for themselves and their employees during the training period.

Ongoing Training, Sales Programs, and Meetings: A Principal of the Franchisee must also participate in ongoing training sessions, sales programs, and meetings as scheduled by the Franchisor. These events, which are held at specified locations and times, are attended at the Franchisee's expense.

New Dealer Training Program: This program includes various instructional methods such as in-person sessions, handouts, the Operations Manual, training videos, role-playing, and practical work at a Car-X Center. The duration of the training can extend up to four weeks, tailored to the franchisee's level of knowledge and experience.

Territory Protection

The franchisor provides franchisees with limited territory protection. This "Protected Area" typically encompasses a three-mile radius around the franchise location, with the exception of existing or planned Car-X Centers. Within this designated area, the franchisor will not operate or permit others to use the Car-X trademarks.

However, this protection does not cover marketing territory or guarantee customer exclusivity. Both the franchisor and other franchisees are permitted to market and sell to customers within this area. Additionally, the franchisor reserves the right to sell products bearing the Car-X trademarks through alternative channels such as the Internet and direct marketing, both inside and outside the protected area.

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