CARSTAR's Canadian shops operate under CARSTAR Canada Partnership, LP — a Canadian operating entity distinct from the brand's U.S. corporate parent, which matters because it's this entity's consent, not a foreign one, that governs a resale. Because CARSTAR shops typically work insurer direct-repair programs, a sale here isn't just about the building and the paint booth — it's also about whether the location's insurer relationships and referral volume are positioned to carry over to a new owner.
CARSTAR resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer sets price and structure, conditioned on franchisor consent and a review of the shop's direct-repair-program standing with its insurer partners, since referral volume is often tied to the location and its credentials, not just its owner.
1–2 weeks†CARSTAR Canada Partnership reviews the proposed buyer and may exercise a right of first refusal before the sale can proceed — and, as part of Driven Brands' broader Canadian automotive portfolio, that review can layer in the consolidator's own process alongside the shop-level one.
several weeks, typically†A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where it's called a private deal.
assessed early†Getting to closing
The lease needs landlord consent to assign, alongside a screening-level review of the spray booth's VOC compliance and how paint, solvents, and thinners have been stored and disposed of on site.
2–6 weeks†Collision-repair certifications and any insurer-specific credentialing attach to trained staff, and the shop's direct-repair-program status with its insurer partners is typically reconfirmed once the new ownership is in place.
2–4 weeks, often concurrent†Funds and keys change hands, equipment and bay condition are confirmed, and the franchisor confirms the transfer is complete.
1 day, once conditions are met†Official carstar.ca/franchise page, operated by CARSTAR Canada Partnership, LP, actively markets a "Franchise Opportunity" recruiting collision-repair franchisees; part of Driven Brands' automotive services portfolio
Ontario collision-repair shops within CARSTAR's nationwide Canadian franchise network
This is the first real decision in a CARSTAR resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The shop's equipment — frame and alignment systems, spray booth, tooling — leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent. | The shares of the operating company — everything it owns, and everything it owes. |
| Seller's liabilities | Generally stay behind with the seller's existing corporation. | Generally come with the company, known and unknown. |
| Franchise agreement | Consent required for the specific unit, often paired with a current-form agreement. | Consent required for the change of control itself. |
| Insurer DRP status | A location's direct-repair-program standing with its insurer partners doesn't automatically follow a new owner — it's typically reassessed once the ownership change is confirmed. | Insurer relationships attach to the operating company, so a share sale can, in principle, carry DRP status forward more directly — though insurers still tend to want to know who's now running the shop. |
| Environmental exposure | A screening-level review of the spray booth's VOC compliance and how paint, solvents, and thinners have been stored and disposed of is standard before assets change hands. | Environmental exposure attaches to the corporation, so refinishing history matters even more on a share sale. |
| The lease | Needs the landlord's written consent to assign — a collision shop's bay layout and booth ventilation requirements often differ from a general retail unit. | Usually stays in place, unless the lease has its own change-of-control clause. |
The shop's equipment — frame and alignment systems, spray booth, tooling — leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent.
The shares of the operating company — everything it owns, and everything it owes.
Generally stay behind with the seller's existing corporation.
Generally come with the company, known and unknown.
Consent required for the specific unit, often paired with a current-form agreement.
Consent required for the change of control itself.
A location's direct-repair-program standing with its insurer partners doesn't automatically follow a new owner — it's typically reassessed once the ownership change is confirmed.
Insurer relationships attach to the operating company, so a share sale can, in principle, carry DRP status forward more directly — though insurers still tend to want to know who's now running the shop.
A screening-level review of the spray booth's VOC compliance and how paint, solvents, and thinners have been stored and disposed of is standard before assets change hands.
Environmental exposure attaches to the corporation, so refinishing history matters even more on a share sale.
Needs the landlord's written consent to assign — a collision shop's bay layout and booth ventilation requirements often differ from a general retail unit.
Usually stays in place, unless the lease has its own change-of-control clause.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single CARSTAR collision shop changing hands between one buyer and one seller, with a straightforward lease and no open insurer-relationship questions.
Start my file →A resale where the shop's direct-repair-program status with a major insurer needs to be reconfirmed before terms are final, or a buyer adding a CARSTAR location to a multi-shop portfolio.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
Generally, no — a location's direct-repair-program standing with its insurer partners is typically reassessed once the ownership change is confirmed, so it's worth understanding how that requalification works before assuming referral volume carries over unchanged.
It can add a layer of process — CARSTAR is one of several automotive brands inside Driven Brands' Canadian portfolio, and the consolidator's evaluation of an incoming owner sits alongside, not instead of, the standard franchise consent and right-of-first-refusal review.
Possibly. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in matching a buyer to a seller can be enough to trigger a full disclosure requirement even where the deal is framed as a private resale.
Diligence typically focuses on the spray booth's VOC compliance and how paint, solvents, and thinners have been stored and disposed of — a screening-level review is standard, since refinishing work is a daily part of a collision shop's operations.
Not automatically — collision-repair and OEM certifications attach to individual technicians, not the location, so confirming who on staff holds current credentials (and whether insurer DRP credentialing depends on them) is part of diligence.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by CARSTAR or its franchisor.
Tell us about your CARSTAR resale — we'll point you the right way and confirm the cost in writing before any work begins.