Dealer Specialties Franchise Cost, Revenue & Review 2026
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. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $17K – $45K
- 1st pct Automotive
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 73
- 25th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · 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.
- RETURNSUnaudited 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.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- DECLINESystem contracting at -45.7% 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
- Dealer Specialties International, Inc.
- Parent company
- Dealer Specialties, Inc.
- Ultimate parent
- Dominion Enterprises
- 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 97% 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Dealer Specialties unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
349%
Above the 30–60% band. Verify revenue is per-unit average
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
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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Dealer Specialties Compares
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
- Turnover rate
- 28.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 2
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 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).
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
- N/A
- limited sample (2 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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)
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
Largest disclosed settlement: $2,560,063
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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 35 / 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 | none |
| 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
FDD download
Dealer Specialties · FDD (2024) PDF
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 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 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 D-grade franchise with a verdict score of 35 out of 100 (higher is better), 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.
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.