DCAP Insurance / The Tax Zone Franchise Cost, Revenue & Review 2026
- Investment
- $62K – $110K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
DCAP Insurance and The Tax Zone is a financial services franchise offering auto and business insurance alongside tax preparation. Franchisees run local offices, selling insurance policies and preparing tax returns for clients.
FranchiseVerdict summary · 2026
A DCAP Insurance / The Tax Zone franchise requires a total initial investment of $62K – $110K, including a $25K franchise fee and an ongoing 20.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $62K – $110K
- 41st pct Financial Ser…
- Avg gross sales
- N/A
- Royalty
- 20.0%
- 48th pct Financial Ser…
- Units
- 36
- 32nd pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $62K – $110K including a $25K franchise fee, 20.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed) (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- DCAP Management Corp.
- Ultimate parent
- Kingstone Companies, Inc.
- FDD Item 1, page 7 of the 2023 FDD
- Predecessor
- Now Tax Service, Inc.
- Prior franchisor entity
- 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
- $43K
- vs $507K prior year
Overview
About
- CEO
- Abraham Weinzimer
- Headquarters
- NY
- FDD year
- 2023
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 9% below the typical financial services franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $12K | $35K |
| Total initial investment | $62K | $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
- $62K – $110K
- Middle of category vs category
- Liquid capital req'd
- $25K – $50K
- Bottom third — review vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 20.0%
- typical 6–8%
- Ad fund
- DCAP Centers: $425–$750 per month; The Tax Zone: variable…
- Total fee load
- 60.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Technology fee | $40 |
| Transfer fee | $6K |
| Renewal fee | $0 |
| Total fee load | 60.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
DCAP Insurance / The Tax Zone makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one DCAP Insurance / The Tax Zone unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 60.0% — above the Financial Services median of 16.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -5.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services medians
How DCAP Insurance / The Tax Zone Compares
Category median of published Financial Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
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
- 17.6%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (3-yr)
- -5.6%
- Net unit change over 3 years
- 3-yr CAGR
- -5.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- 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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
1 case: Natalie Fowora v. Abe Weinzimer et al. (Nassau County District Court, #CV-023094-2012); settled Feb 2014, defendant paid $3,000, dismissed with prejudice.
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)
Exhibit G financial statements are UNAUDITED (no CPA opinion). Balance sheet as of Feb 28, 2023; Profit & Loss covers partial period Jan-Feb 2023 only. Total Income $43,325.52 = management fee $24,756.35 + advertising income $5,500 + commission overrides $13,069.17. Net income $19,510.40. Franchisor entity: Dcap Management Corp. No prior-year (yr2) statement presented.
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 53 / 100 verdict
- 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)
- 05MINORDual-brand model (DCAP + Tax Zone) adds operational complexity without proven synergy data
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 60.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 5 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 21,000 |
| 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 |
| RoFR response window | 14 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 1 |
View Item 3 litigation summary
1 case: Natalie Fowora v. Abe Weinzimer et al. (Nassau County District Court, #CV-023094-2012); settled Feb 2014, defendant paid $3,000, dismissed with prejudice.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 0 hrs
- Training location
- Our Headquarters (Hicksville, New York)
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Offered
- Item 10
- 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
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $62K – $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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns DCAP Insurance / The Tax Zone?
DCAP Insurance / The Tax Zone is franchised by DCAP Management Corp.. The ultimate parent named in the FDD is Kingstone Companies, Inc.. Source: FDD Item 1, 2023 filing.
What is Item 19 in the DCAP Insurance / The Tax Zone FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the DCAP Insurance / The Tax Zone FDD and qualifies whose outlets they describe.
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 34 franchised units and 2 company-owned units.
Is DCAP Insurance / The Tax Zone a good franchise to buy?
FranchiseVerdict rates DCAP Insurance / The Tax Zone as a B-grade franchise with a verdict score of 53 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.