FranchiseVerdict
Dale Carnegie logo
FV-00705·MODERATEExcellent81FDD 2022

Dale Carnegie

Education - Tutoring & Test PrepFranchising since 2000Website
Investment
$93K – $246K
41st pct Tutoring & Te…
Avg revenue
55th pct Tutoring & Te…
Royalty
12.0%
59th pct Tutoring & Te…
Units
143
81st pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $93K – $246K including a $20K franchise fee, 12.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 25 loans (below the industry average).
  • System contracting at -6.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Dale Carnegie & Associates, Inc.
Incorporated in
New York
HQ
58 South Service Road, Suite 301, Melville, New York 11747
Auditor
CohnReznick LLP
Audited financials
Franchisor revenue
$28.0M
vs $20.1M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Dale Carnegie unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $93K–$246K
Working capital
$
FDD reports $50K–$100K

Unlevered ROIC · per unit

25%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$60K
EBITDA margin
8.0%
Total invested
$245K
Payback
49 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate Dale Carnegie corporate training and personal development centers, delivering in-person and virtual courses on communication, leadership, and confidence-building. Daily operations involve recruiting corporate clients, scheduling/delivering instructor-led training programs, managing a small staff, and handling billing/customer retention.

CEO
Joseph Hart
Founded
1955
FDD year
2022
States available
49

Item 7 · what it costs

The Vitals

Total investment
$93K – $246K
All-in to open one unit
Liquid capital
$50K – $100K
Cash you must have on hand
Franchise fee
$20K
Royalty
12.0%
Tiered percentage of Gross Revenues based on Revenue Target · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
15.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
143
Opened
4
Last reporting year
Closed
3
Turnover rate
2.1%
Company-owned
1
Corporate units in the system
% franchised
99%
vs corporate-owned
Net growth (yr3)
+0.7%
Net unit change last year
3-yr CAGR
-6.0%
Compounded over last 3 years
2020
142+1
Franchised units
2021
141
Franchised units
2022
151
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 24 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 24 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
25
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

61
Risk · 0-100
MODERATE61 / 100

Dale Carnegie presents meaningful risk due to stagnant growth, missing financial disclosure, aggressive royalty structure, and lack of evidence franchisees achieve positive ROI.

Score breakdown · what drove the 61 / 100 rating

  1. 01MINORStagnant unit growth at 0.7% YoY indicates a mature or declining system with minimal expansion momentum
  2. 02MEDFinancial performance metrics (avg revenue and net income) not disclosed in FDD Item 19, making ROI assessment impossible
  3. 03MINORTiered royalty structure up to 12% is aggressive and disproportionately punishes underperforming locations, creating cash flow pressure
  4. 04MED143 total units is a small franchise system with limited brand recognition and support infrastructure compared to competitors
  5. 05MED10-year term is unusually long for a training/services business with no disclosed unit economics or franchisee profitability data

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population-based
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
103 hrs
On-the-job training
0 hrs
POS system
DCT Client Builder, Salesforce, Microsoft Office 365
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

45 numbers

Locked
(702) 430-••••
NV
(436) 548-••••
(520) 747-••••
AZ

One-time purchase · CSV download · Validation questions included

FDD download

Dale Carnegie · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above