About CAR-X Franchise
Car-X is a retail automotive service center franchise specializing in the repair and replacement of automotive products and services including air conditioning, brake systems, maintenance service, muffler and exhaust systems, ride control products, tires, and other automotive services.
Franchisees operate under the Car-X Auto Service or Car-X Tire and Auto brand names, serving vehicle owners in their market area.
The franchise also services fleet accounts through partnerships with companies like ARI, Enterprise Fleets, and GE Capital Fleet Services.
CAR-X Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales (2.5% for first 180 days for new franchises) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not to exceed 10% of weekly gross sales (50% of specified rate on tire/battery sales); non-media account currently 0.35% | National brand fund |
| Total Investment Range | $330,200 – $527,000 | Includes build-out, inventory, working capital |
The investment range of $330K–$527K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales (2.5% for first 180 days for new franchises)) and marketing fee (Not to exceed 10% of weekly gross sales (50% of specified rate on tire/battery sales); non-media account currently 0.35%) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Reservation Deposit | $10,000 | $10,000 |
| Initial Franchise Fee | $35,000 | $35,000 |
| Equipment and Furniture | $220,000 | $275,000 |
| Signs | $17,000 | $50,000 |
| Inventory | $12,000 | $18,000 |
| Lease and First Month's Rent | $8,000 | $30,000 |
| Miscellaneous Pre-Opening Expenses | $15,000 | $40,000 |
| Travel and Living Expenses While Training | $1,200 | $4,000 |
| Initial Advertising Fee | $10,000 | $15,000 |
| Additional Funds - 3 months | $12,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the initial franchise fee being charged at the time of the transfer |
| Renewal Fee | No renewal fee under current policies |
| Technology Fee | AllData Software $80.00 per month per Car-X Center (optional) |
| Audit Fee | Approximately $5,000 for audit cost; 25% surcharge on underpayment |
| Lease Payments | $8,000 to $15,000 per month |
| Insurance | $5,000 to $12,000 annually |
| Late Charges | 1.5% per month |
| Preparation of Monthly P&Ls | $500 to $750 per month |
| Additional Training | To be determined |
| Maintenance and Repairs | Actual cost |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 4 weeks |
| Classroom Training | 88 hours |
| On-the-Job Training | 40 hours |
| Training Location | Car-X office in Schaumburg, Illinois (HQ) and at a Car-X Center |
| Additional Training | May require attendance at performance assessment after approximately 3 months of operation. May require additional training or refresher courses when new products or services are introduced. Currently no charge for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Generally 3-mile radius around franchise location |
| Description | Protected area within a 3-mile radius of the franchise location, excluding any Car-X Centers existing or under development as of the date of the Franchise Agreement. Franchisor will not operate or authorize others to operate under Car-X trademarks within the protected area. However, franchisor and affiliates (including parent Monro) may operate similar businesses under different trademarks within the protected area. No minimum sales volume or market penetration required to maintain protected area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | Two additional periods of 5 years each |
| Renewal Fee | No renewal fee under current policies |
| Renewal Conditions | Automatic renewal unless franchisee elects not to renew or franchisor does not consent. Franchisor may require: execution of general release, signing of then-current franchise agreement, compliance with all standards including renovation and equipment modernization. |
| Transfer Fee | 50% of the initial franchise fee being charged at the time of the transfer |
| Transfer Conditions | Proposed transferee must meet new franchisee standards, all amounts paid to franchisor, escrow of portion of purchase price, transfer fee paid, training arranged, release signed by franchisee, current Franchise Agreement signed by new franchisee. Franchisor has right of first refusal. |
| Termination for Cause | 10 days notice for monetary defaults, 30 days for other defaults. Non-curable defaults include willful misrepresentation, unauthorized transfer, conviction of crime, abandonment, materially adverse conduct, repeat defaults, bankruptcy. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No direct or indirect involvement in a competing business for 2 years within 5 miles of former franchise location or within 5 miles of any other Car-X location. Restrictions do not apply if franchisee terminates for cause or if franchisee owns the real estate, no other Car-X Centers in market area, and franchisor does not acquire the location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, must devote full time and effort to actual management and operation. If a corporation or entity, one or more principals owning 10% or more equity must devote full time and effort. A manager other than a principal may be approved by franchisor and may be required to complete training program. On-premises manager is not required to have equity interest. |
| Required Suppliers | Must purchase signs, equipment, computer hardware/software, fixtures and furnishings from approved suppliers or manufacturers. Products and inventory must be purchased from approved suppliers per Operations Manual. |
| Supply Restrictions | 90% to 100% of purchases for establishing and operating a Car-X Center must be from approved suppliers or in accordance with franchisor specifications. Franchisor maintains lists of specified items and suppliers. |
| Franchisor Revenue from Suppliers | Total revenue from franchisees for fiscal year ending March 29, 2025 was $1,439,541. $0 from lease/sublease payments, $59,329 from AllData software payments (1.5% of total revenues). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Advantage+ (Advantage Leasing Corporation) offers loan financing for equipment, fixtures, furniture, computers and signs up to $200,000. Interest rate varies from 9% to 14%. Term ranges from 24 to 48 months. Franchisor may also sell company-operated units to franchisees on installment basis at 6% to 10% APR with terms up to 5 to 15 years. Neither financing source is affiliated with franchisor. |
CAR-X Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
CAR-X Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CAR-X System Growth
CAR-X currently operates 47 franchised locations and 71 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 4 | 76 |
| 2023 | 0 | 26 | 50 |
| 2024 | 0 | 3 | 47 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 4 states: IL, IN, MN, WI
Franchisor Financials (Item 21)
Audited by PricewaterhouseCoopers LLP for year ending March 29, 2025.
CAR-X Franchise — FAQ
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