CAR-X Franchise
Cost, fees, owner earnings, closure rate and litigation for a CAR-X franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
CAR-X discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Pro forma P&L for 46 franchised locations (2025) by sales terciles. Tercile 1: $1.17M sales, $234.8K net income (20%). Tercile 2: $758.6K sales, $82.6K net income (11%). Tercile 3: $500.6K sales, -$47.4K loss (-9%). Based on company-owned cost data; actual franchisee expenses vary.
What a CAR-X franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Royalty | 4.2% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 4.2% of gross sales | Before rent, labor, food or debt service |
Royalty 4.2% blended (tires, batteries, services). POS system ~$2,916 annual maintenance. Item 7 software/hardware upgrades up to $15K cap during term.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
CAR-X system size and owner turnover
| Total outlets | 97 |
| Ceased operations | 27 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 27.8% of outlets |
27 company-owned outlets closed 2023-2025; 26 franchised ceased 2023. Net -21 outlets 2025.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is CAR-X worth it? — how it compares to 18 similar franchises
| Ongoing fees | 4.2% of sales | lower than most (median 9%) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 27.8% of outlets | worse than 94% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every automotive services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a CAR-X
The franchisor's framing: Pro forma P&L for 46 franchised locations (2025) by sales terciles. Tercile 1: $1.17M sale… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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CAR-X franchise — frequently asked
- How much does a CAR-X franchise cost?
- CAR-X's current FDD excerpt doesn't clearly state a total investment range — ask for Item 7 directly.
- How much do CAR-X franchise owners make?
- Pro forma P&L for 46 franchised locations (2025) by sales terciles. Tercile 1: $1.17M sales, $234.8K net income (20%). Tercile 2: $758.6K sales, $82.6K net income (11%). Tercile 3: $500.6K sales, -$47.4K loss (-9%). Based on company-owned cost data; actual franchisee expenses vary. We grade this disclosure C for honesty.
- What are the CAR-X franchise fees?
- CAR-X's FDD discloses a 4.2% royalty on gross sales, for roughly 4.2% of gross sales in recurring fees before rent, labor, or debt service. Royalty 4.2% blended (tires, batteries, services). POS system ~$2,916 annual maintenance. Item 7 software/hardware upgrades up to $15K cap during term.
- What is the CAR-X franchise profit margin?
- CAR-X does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Pro forma P&L for 46 franchised locations (2025) by sales terciles. Tercile 1: $1.17M sales, $234.8K net income (20%). Tercile 2: $758.6K sales, $82.6K net income (11%). Tercile 3: $500.6K sales, -$47.4K loss (-9%). Based on company-owned cost data; actual franchisee expenses vary. Recurring fees alone take about 4.2% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the CAR-X franchise failure rate?
- 27 company-owned outlets closed 2023-2025; 26 franchised ceased 2023. Net -21 outlets 2025.
- How many CAR-X locations are there?
- CAR-X's FDD reports 97 total outlets, with 27 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does CAR-X have complaints or lawsuits?
- CAR-X discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a CAR-X franchise worth it?
- It depends on the numbers, not the pitch. CAR-X scores C on disclosure honesty, carries about 4.2% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with CAR-X or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.