Dealer Specialties Franchise Cost, Revenue & Review 2026
- Investment
- $17K – $45K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Dealer Specialties is an automotive B2B franchise providing vehicle photography, window stickers, and online-listing services for car dealerships. Franchisees run a service operation photographing and merchandising dealer inventory, earning per-vehicle fees in a territory.
FranchiseVerdict summary · 2026
A Dealer Specialties franchise requires a total initial investment of $17K – $45K, including a $10K franchise fee. 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: C (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 scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $17K – $45K
- 1st pct Automotive
- Avg gross sales
- N/A
- Royalty
- Set by a formula
- Units
- 73
- 25th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive 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 $17K – $45K including a $10K franchise fee.
- 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 C (Average), verdict score 39/100 (higher is better).
- GROWTHNegative: net -8 franchised outlets in the latest year (0 opened, 8 closed) (Item 20).
- FLAG5 units terminated last reporting year (6.8% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Dealer Specialties International, Inc.
- Parent company
- Dealer Specialties, Inc.
- FDD Item 1, page 6 of the 2024 FDD
- Ultimate parent
- Dominion Enterprises
- FDD Item 1, page 6 of the 2024 FDD
- CEO title
- President, Dominion Dealer Solutions
- Dan Sykes
- Incorporated in
- OH
- HQ
- 60 Overbrook Drive, Monroe, Ohio 45050
- Auditor
- Wall, Einhorn & Chernitzer, P.C.
- Unaudited
- Franchisor revenue
- $712K
- vs $1.8M prior year
Overview
About
- CEO
- Dan Sykes
- Headquarters
- OH
- Founded
- 1989
- FDD year
- 2024
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 92% below the typical automotive franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $2K | $5K |
| Equipment, build-out, other | $6K | $30K |
| Total initial investment | $17K | $45K |
Source: Dealer Specialties 2024 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
- $17K – $45K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $5K
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- Greater of (a) $100 per Dealer Lot per month, or (b) comb…
- Ad fund
- 3 cents per unique VIN uploaded and processed per month
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $0 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Dealer Specialties 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 Dealer Specialties 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, royalty rate, 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: 2024 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.
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 -45.7% 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 Automotive medians
How Dealer Specialties Compares
Category median of published Automotive 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 73
- Opened
- 0
- Last reporting year
- Closed
- 8
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 11.0%
- Company-owned
- 48
- Corporate units in the system
- % franchised
- 34%
- vs corporate-owned
- Net growth (3-yr)
- -45.7%
- Net unit change over 3 years
- 3-yr CAGR
- -45.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 5
- Reacquired
- 1
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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.
Available to sell in · Item 12
- Indiana
- New York
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
21 current owners across 17 states; 8 former (terminated, transferred or not renewed) listed separately.
- TN 4
- AL 2
- AR 1
- FL 1
- IA 1
- IN 1
- KY 1
- LA 1
- ME 1
- MI 1
- MO 1
- NC 1
- +5 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $355K
- Median loan
- $178K
- 50th percentile
- Charge-off rate
- Under 10 loans (2)
- Insufficient SBA coverage: 2 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (2)
- 5-yr charge-off
- Under 10 loans (2)
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Dealer Specialties presents HIGH RISK: a rapidly contracting franchise system (down 24.2% YoY) with undisclosed financials, unprotected territory, litigation history around non-compete enforcement, and a confusing per-vehicle royalty model that creates margin uncertainty.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Three matters: (1) DSI v. Tyner (Case No. A 2400654, pending) – injunctive relief for breach of restrictive covenants by former franchisee; (2) DS and DSI v. Piper (1:18-cv-00525, dismissed Sept. 2021) – restrictive covenant breach, trade secrets, fraud against former franchisee; (3) DS and DSI v. Car Data 24/7 / Lindsey (three related filings 2015–2016) – terminated for non-payment, restrictive covenant breach; final award $1,358,889.24 against Car Data; judgment $2,560,063.66 against Ell Jay Lindsey; resolved via bankruptcy order Sept. 2022
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Unaudited consolidated statement of operations for May 31, 2024 YTD (interim, single period presented). Total revenues $712,017 comprised of royalty fees $250,025, photo production $257,418, and label sales and other $204,574.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 39 / 100 verdict
- 01MEDSystem shrinking rapidly: 24.2% unit decline YoY (73 units) signals franchisee dissatisfaction or failed model
- 02MEDNo financial transparency: Average revenue and net income not disclosed in Item 19, making ROI impossible to validate
- 03HIGHAggressive litigation history: Three disclosed cases including breach of non-compete claims suggest enforcement disputes and potentially restrictive covenants
- 04MINORUnprotected territory: Franchisees face direct competition from other franchisees and company-owned operations
- 05MINORComplex, opaque royalty structure: Per-vehicle fees ($0.83 labels + $0.65 clipping + $1.75 photos = $3.23/VIN minimum) create unpredictable margins; $100/lot floor may be insufficient for small operators
- 06MINORLow initial investment masks ongoing variable costs: $17,400–$44,900 entry fee is deceptively low given per-vehicle fee structure requiring high volume to justify
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 14 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Cincinnati, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 3 |
View Item 3 litigation summary
Three matters: (1) DSI v. Tyner (Case No. A 2400654, pending) – injunctive relief for breach of restrictive covenants by former franchisee; (2) DS and DSI v. Piper (1:18-cv-00525, dismissed Sept. 2021) – restrictive covenant breach, trade secrets, fraud against former franchisee; (3) DS and DSI v. Car Data 24/7 / Lindsey (three related filings 2015–2016) – terminated for non-payment, restrictive covenant breach; final award $1,358,889.24 against Car Data; judgment $2,560,063.66 against Ell Jay Lindsey; resolved via bankruptcy order Sept. 2022
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 0 hrs
- Training location
- Monroe, Ohio
- Time to open
- 2 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
29 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 Dealer Specialties franchise?
The total investment to open a Dealer Specialties franchise ranges from $17K – $45K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Dealer Specialties franchise owners earn?
Dealer Specialties 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 Dealer Specialties?
Dealer Specialties is franchised by Dealer Specialties International, Inc.. Its parent company is Dealer Specialties, Inc.. The ultimate parent named in the FDD is Dominion Enterprises. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Dealer Specialties 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 Dealer Specialties FDD and qualifies whose outlets they describe.
What is Dealer Specialties's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Dealer Specialties (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 Dealer Specialties franchise locations are there?
As of their most recent FDD filing, Dealer Specialties has 73 total units in the United States, including 25 franchised units and 48 company-owned units.
Is Dealer Specialties a good franchise to buy?
FranchiseVerdict rates Dealer Specialties as a C-grade franchise with a verdict score of 39 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.