Car X
Car-X Auto Service specializes in automotive repair and replacement services including air conditioning, brake systems, and tires. Known for comprehensive maintenance and product offerings, Car-X operates across various franchise models in the competitive auto service industry.
About Car X
Car X franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a Car-X franchise ranges from $396,200 to $582,000. This includes an initial fee paid to the franchisor or affiliate ranging from $45,000 to $50,000 and an additional amount for other expenses ranging from $326,000 to $450,000 [p.1].
What is the initial franchise fee?
The initial franchise fee is typically $35,000 [p.12, p.18]. However, it's noted that the franchisee is not required to pay this specified initial franchise fee [p.129, p.126]. Instead, a deposit of $10,000 is generally required at the time of submitting the franchise application, which can be refunded or applied towards the initial franchise fee depending on certain conditions [p.12, p.18].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of gross sales for all time periods after the initial 180 days [p.74]. Franchisees must also contribute to an advertising fund, with the percentage specified in the franchise agreement [p.16].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Good cause includes scenarios like exercising a right of first refusal to purchase the franchise [p.5]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on specified criteria [p.30] (Section I of Renewal Addendum; Section J of Transfer Addendum).
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on several grounds, including if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time [p.5]. Additionally, the franchisor may terminate a lease or sublease for the franchise location or exercise its option to acquire the lease or purchase the franchise location [p.100].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific requirements for a prospective franchisee's net worth or liquid capital needed to qualify as a franchisee.
Do I get an exclusive or protected territory?
Yes, you receive a protected area around your franchise location. Generally, this is a three-mile radius excluding existing Car-X Centers as of the date of your Franchise Agreement [p.37]. However, if you are an area developer, your protected area can be larger and may depend on population density, car registrations, and the number of franchises that need to be developed [p.38]. This isn't specified in the excerpts for a standard franchisee.
What training and ongoing support does the franchisor provide?
The franchisor provides assistance in recruiting, interviewing, hiring, and training initial employees [p.82]. Additionally, one or more of the franchisor's employees will assist in setting up the franchise business for about one week before opening [p.30]. Up to two owners and a manager can attend the new dealer training program, which lasts up to four weeks depending on their knowledge and experience, with no extra charge but travel and living expenses are the franchisee’s responsibility [p.34].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2025, there were 46 franchised Car-X Centers in operation [p.49]. The FDD does not specify the number of closed or terminated franchises; it only mentions a plan to close 145 underperforming stores on May 23, 2025, but these were company-owned stores, not franchises [p.229].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of existing outlets if requested, but it does not make representations about future financial performance or past earnings of company-owned or franchised outlets. The franchisor may supplement the information provided in Item 19 under certain circumstances [p.49]. Additionally, the franchise agreement states that no oral or written assurances regarding the likelihood of success are given [p.121].
What am I restricted to selling, and where must I buy supplies?
You are required to sell all products and services specified by the franchisor. You may offer optional products and services if authorized, but you cannot sell any unauthorized items [p.42]. Regarding supplies, you may have to purchase or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].