Kyle Larson’s recent move with Brad Sweet is further evidence that he has never been one to follow the rules. In stark contrast to NASCAR’s charter system, which has been the focus of much discussion, is their High Limit Racing franchise concept. It is chosen, permanent, and—above all—designed to ensure the stability of the team over the long run.

This upheaval in the sprint car industry is also reigniting debates regarding NASCAR’s organizational structure and how it runs its business through the charter system. The president of NASCAR, Steve Phelps maintains that the charter structure is essential to the Cup teams’ long-term viability despite ongoing talks and legal concerns. “I am super bullish on that.” However, Larson, a Cup Series champion himself, might have just changed the course of history.

In addition to launching a new series, Kyle Larson’s High Limit Racing is revolutionizing sprint car racing by changing how teams compete and survive. The series has rapidly grown since its 2023 launch with a small calendar, with over 50 races in 2024 and a planned 61-race slate spanning 20 states in 2025. And now they’ve made further strides in bolstering their vision plan for sprint car racing with a franchise model.

Unlike NASCAR charters, which primarily rely on varying sponsorships and race prizes, this revenue-sharing model offers a consistent financial base. The main distinction is permanence: High Limit’s franchises provide secured long-term ownership, giving teams more control over their financial future. Through this system High Limit will distribute up to $18 million dollars in total value over the next four years. Based on the team rankings from 2024, the current five franchises will belong to Kasey Kahne Racing (No. 49), Clauson-Marshall Racing (No. 7BC), Rico Abreu Racing (No. 24), Roth Motorsports (No. 83), and Murray-Marks Motorsports (No. 19).

Five more franchises will be added to this system by the end of the 2025 season. And the criteria for bagging them will be average point finishes from the 2024 and 2025 seasons among drivers who didn’t earn a franchise in 2024. Currently, there are seven teams who are eager to book a spot for themselves and draw from the new revenue pool. Well, we heard a lot of rumors about the High Limit and World of Outlaw merger in the silly season. But, this move by Kyle Larson and Co. clearly indicates that they are looking to revolutionize sprint car racing, on their own terms.

On the flip side, NASCAR is sticking by their guns and has escalated its legal dispute with two teams, 23XI Racing and FRM. Well, they were the ones being accused of running a monopolistic business, but they’ve hit back hard with a counterclaim. At the center of their legal scrutiny was Michael Jordan’s business partner Curtis Polk as NASCAR accused him of orchestrating the boycott of races with regards to disagreements to the new charter deal.

While it’s hard to guess which side the pendulum swings in this legal tussle, Larson made sure he avoided NASCAR’s blunder with his own series. And guess what? this approach by the HMS star got people talking with some even taking jabs at NASCAR.

Larson’s Franchise Move Stirs Up NASCAR Charter Debate

There has never been a more stark contrast between grassroots dirt racing and NASCAR’s established systems. The notion that High Limit Racing’s franchise concept would persuade Cup racers to pursue sprint cars full-time was welcomed by fans right away. One fan remarked, “Calling it now—do not be surprised if a few Cup drivers jump ship to dirt,” reiterating the prevailing perception that drivers are searching for other options due to NASCAR’s increasing expenses, restricted contracts, and corporate influence. $18 million is what the Cup Series teams are spending annually with almost nothing in return. So Larson’s series does provide a better business prospect for a lot of team owners.

“I wonder if an HLR Franchise will be profitable enough that it would be worth it for a ton of fans to co own a Packers type racing franchise and have a small piece of a Sprint Car Team?“ A fan’s speculation sparked discussion over the future of High Limit Racing. But, going by the press release on the series’ official website, they are in talks about confirming the 2025 schedule. 14 teams and drivers have committed to the cause, there will be an introduction of ports betting through ALT Sports Data. This will be followed by the five-part docuseries of the High Limit Racing. So they’ve got all the pieces together and all they have to do is execute to keep up with the growth momentum.

The change presents an uncomfortable contrast for some admirers. One admirer said, “I gotta stop talking sh– about the charter system since my GOAT just made his own charter system, I guess,”  It is true that Larson has, in a sense, endorsed the idea of a closed-team, structured approach, which many purists contend runs counter to the open-entry origins of motorsport. However, the execution is where a charter and a franchise diverge most. With Larson’s arrangement, there is real permanence—no leasing and no need for future renegotiation disputes. Teams are still battling for long-term guarantees in NASCAR’s charter renewal negotiations, and there’s a possibility we might not have the charter system after the dust is settled from the ongoing legal battle.

Without a few lighthearted jabs at its most vocal members, no NASCAR discussion would be complete. About Denny Hamlin’s involvement with 23XI Racing and his continuing legal dispute over NASCAR’s charter structure, one fan said, “Hopefully, they’ll be smart enough to NOT let Denny Hamlin buy a team,” Ironically, Hamlin, a leading supporter of NASCAR’s ownership structure, is now battling for the security that Larson’s franchise system already provides. This assertion that there are alternative ways to conduct business in the motorsports industry is, in many respects, Larson’s biggest flex to date.