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FranchiseVerdict

How Much Does a DCAP Insurance / The Tax Zone Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$25K – $110K

Franchise Fee

$25K

Royalty

20.0%

Ad Fund

Between $425 and $750 per month for DCAP; Variable pro-rata share for The Tax Zone

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for DCAP Insurance / The Tax Zone is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a DCAP Insurance / The Tax Zone franchise requires a total investment of $25K – $110K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $6K to $50K.

Ongoing Costs

Beyond the initial investment, DCAP Insurance / The Tax Zone franchisees pay ongoing fees. The royalty fee is 20.0% of gross sales (Percentage of Gross Sales / Fixed Monthly Fee). The ad fund contribution is: Between $425 and $750 per month for DCAP; Variable pro-rata share for The Tax Zone. There is also a technology fee of $40.

Net Worth & Liquid Capital Requirements

DCAP Insurance / The Tax Zone requires working capital of $6K – $50K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

DCAP Insurance / The Tax Zone does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

Next Steps

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