Carstar vs Midas
Carstar vs Midas: Carstar costs $150K to $2.5M to open; Midas costs $141K to $1.3M. Carstar has 102 units, Midas has 370. SBA loan history: Carstar = 118 loans (3.4% default); Midas = 478 loans (8.4% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Carstar vs Midas: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Midas requires the lower minimum capital commitment ($141K vs $150K for Carstar), a 6% spread. Initial franchise fees come in at $20K for Carstar versus $50K for Midas, Carstar has the lower entry fee. Ongoing royalty load is 5% for Carstar and 5% for Midas, equal royalty drag.
System Scale & Tenure
On scale, Midas operates 370 units to Carstar's 102, roughly 4× the system size. Midas has been operating 70 years (founded 1956) versus 37 for Carstar (founded 1989), a 33-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Midas has the deeper SBA lending track record, with 478 7(a) approvals compared with 118 for Carstar. Carstar's peak SBA year was 2021 (16 loans); Midas's peak was 1994 (26 loans). Carstar's more recent peak generally indicates fresher lender appetite. Carstar has the most SBA funded units in TX, with 11. Midas leads in CA, with 51. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Carstar deals is $859K vs $428K for Midas, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 3.4% for Carstar and 8.4% for Midas, Carstar has the cleaner SBA loss record by 5.0 points. PeerSense FPI scores come in at 56 (Moderate) for Carstar and 68 (Strong) for Midas, giving Midas the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 56/100 | 68/100 |
Health Tier | Moderate | Strong |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 118 | 478 |
SBA Volume | – | – |
Default Rate | 3.4% | 8.4% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $150K to $2.5M | $141K to $1.3M |
Franchise Fee | $20K | $50K |
Royalty Rate | 5% | 5% |
Ad Fund | 2% | 1% |
Liquid Capital | N/A | $50K |
Net Worth Required | $500K | $250K |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 102 | 370 |
Franchised Units | 102 | 370 |
Company Owned | – | – |
Term Length | 10 yrs | N/A |
Brand Information
Year Founded | 1989 | 1956 |
Franchising Since | 1989 | 1960 |
Years Franchising | 37 yrs | 66 yrs |
Headquarters | ANAHEIM, CA | FORT WAYNE, IN |
Category | General Automotive Repair | General Automotive Repair |
Website | ||
FDD Year | 2025 | 2026 |
Which Is Better, Carstar or Midas?
Lower upfront capital required
Midas
Carstar: $150K starting · Midas: $141K starting
More SBA lender confidence
Midas
Carstar: 118 SBA loans · Midas: 478 SBA loans
Lower SBA default rate
Carstar
Carstar: 3.4% · Midas: 8.4%
Larger system & brand presence
Midas
Carstar: 102 units · Midas: 370 units
Lower ongoing royalty load
Tie
Carstar: 5% · Midas: 5%
More lender financing options
Midas
Carstar: 72 unique lenders · Midas: 166 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Carstar vs Midas: Franchise Funding Comparison
Comparing Carstar and Midas is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $141K to $2.5M.
Carstar has 118 SBA loans on record and Midas has 478. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Carstar vs Midas, Frequently Asked Questions
Which is a better franchise investment, Carstar or Midas?
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Which has a lower SBA default rate, Carstar or Midas?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
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