How Much Does a Car-X Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$330K – $527K
Franchise Fee
$35K
Royalty
2.5%
Ad Fund
10.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Car-X is $35K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Car-X franchise requires a total investment of $330K – $527K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $12K to $60K.
Ongoing Costs
Beyond the initial investment, Car-X franchisees pay ongoing fees. The royalty fee is 2.5% of gross sales (Gross Sales). The advertising or brand fund contribution is 10.0% of gross sales. There is also a technology fee of $80.
Net Worth & Liquid Capital Requirements
Car-X requires working capital of $12K – $60K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Car-X's Item 19 financial performance representation:
Median gross sales: $703K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Car-X?
SBA Loans Issued
14
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Car-X has 14 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Car-X franchise owners
Get verified franchisee phone numbers for due diligence
See full Car-X research
Risk analysis, unit growth, contract terms, and more
Compare Car-X to similar franchises
Side-by-side investment, revenue, and risk comparison