DCAP Insurance / The Tax ZoneFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A DCAP Insurance / The Tax Zone franchise requires a total initial investment of $25K – $110K, including a $25K franchise fee and an ongoing 20.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $25K – $110K
- 4th pct Financial Ser…
- Avg gross sales
- N/A
- 30th pct Financial Ser…
- Royalty
- 20.0%
- 32nd pct Financial Ser…
- Units
- 36
- 28th pct Financial Ser…
- SBA default
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1982. Systems this mature have refined operations and brand recognition.
Franchised units fell from 36 to 34 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $25K – $110K including a $25K franchise fee, 20.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 79/100.
- System contracting at -5.6% 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
- DCAP Management Corp.
- Ultimate parent
- Kingstone Companies, Inc.
- CEO title
- President
- Abraham Weinzimer
- CEO experience
- 37 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 956 South Broadway, Hicksville, New York 11801
- Auditor
- Robert M. Fein & Co, PLLC
- Audited financials
- Franchisor revenue
- $455K
- vs $507K prior year
Overview
About
Franchisees operate tax preparation and accounting service centers under The Tax Zone and/or DCAP Insurance brands. Day-to-day operations include preparing individual and small-business tax returns, offering bookkeeping services, and selling insurance products. Revenue depends heavily on seasonal tax season demand and local client acquisition in a protected territory.
- CEO
- Abraham Weinzimer
- Headquarters
- NY
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $6K | $50K |
| Equipment, build-out, other | $0 | $35K |
| Total initial investment | $25K | $110K |
Source: DCAP Insurance / The Tax Zone 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $25K – $110K
- Better than avg vs category
- Liquid capital req'd
- $6K – $50K
- Better than avg vs category
- Franchise fee
- $13K – $25K
- Better than avg vs category
- Royalty
- 20.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- Between $425 and $750 per month for DCAP; Variable pro-ra…
- Total fee load
- 60.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Technology fee | $40 |
| Training fee | $185 |
| Transfer fee | $6K |
| Renewal fee | $0 |
| Total fee load | 60.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Financial Services averages
How DCAP Insurance / The Tax Zone Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.8%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- -2.9%
- Net unit change last year
- 3-yr CAGR
- -5.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 97.3%
- Units that stayed open
- Ceased ops
- 2.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
A declining franchise system with no financial transparency, aggressive royalties, founder litigation history, and potential franchisor financial instability presents elevated risk unsuitable for most franchisees.
Litigation (Item 3)
Natalie Fowora v. Abe Weinzimer, Diversified Coverage Asset Planning Inc., NOW Insurance Agency Inc., DCAP Brentwood Inc. and DCAP Hicksville Inc. (District Court of the County of Nassau, First District, Case #CV-023094-2012). Settled on February 24, 2014 with $3,000 payment to plaintiff. Dismissed with prejudice.
Largest disclosed settlement: $3,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Robert M. Fein & Co, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 rating
- 01MINORDeclining unit count (-2.9% YoY with only 36 units suggests a shrinking, unstable system)
- 02MEDNo Item 19 financial disclosure (average revenue and net income not disclosed—impossible to assess profitability)
- 03MINORAggressive royalty structure (20% of gross sales for Tax Zone is among the highest in tax/accounting franchises)
- 04HIGHLitigation history involving founders (2012 lawsuit settled for $3,000 suggests disputes at ownership level)
- 05HIGH'Going Concern' status is FALSE, indicating potential financial instability at franchisor level
- 06MEDHigh initial investment range ($17.7K–$109.9K) paired with undisclosed ROI creates blind investment risk
- 07MINORDual-brand model (DCAP + Tax Zone) adds operational complexity without proven synergy data
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 5 |
| Territory type | Zip Code |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
View Item 3 litigation summary
Natalie Fowora v. Abe Weinzimer, Diversified Coverage Asset Planning Inc., NOW Insurance Agency Inc., DCAP Brentwood Inc. and DCAP Hicksville Inc. (District Court of the County of Nassau, First District, Case #CV-023094-2012). Settled on February 24, 2014 with $3,000 payment to plaintiff. Dismissed with prejudice.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 0 hrs
- Training location
- franchised office
- Ongoing training
- Required
- POS system
- Tax Slayer Pro Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Tax Slayer Pro Software
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DCAP Insurance / The Tax Zone · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DCAP Insurance / The Tax Zone franchise?
The total investment to open a DCAP Insurance / The Tax Zone franchise ranges from $25K – $110K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DCAP Insurance / The Tax Zone franchise owners earn?
DCAP Insurance / The Tax Zone does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is DCAP Insurance / The Tax Zone's franchise failure rate?
SBA 7(a) loan charge-off data is not available for DCAP Insurance / The Tax Zone (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many DCAP Insurance / The Tax Zone franchise locations are there?
As of their most recent FDD filing, DCAP Insurance / The Tax Zone has 36 total units in the United States, including 36 franchised units and 3 company-owned units.
Is DCAP Insurance / The Tax Zone a good franchise to buy?
FranchiseVerdict rates DCAP Insurance / The Tax Zone as a F-grade franchise with a risk score of 79 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.