About Dale Carnegie Franchise
Dale Carnegie is a globally recognized professional development franchise offering instructional programs in leadership, sales, communication, interpersonal skills, and self improvement.
The brand delivers training to both individuals and organizations seeking to strengthen professional and personal performance.
The franchise fee ranges from $20,000 to $65,000, and the company has been franchising since 2000.
Dale Carnegie Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 to $65,000 | One-time payment upon signing |
| Royalty Fee | 12% of Gross Revenues up to 65% of Revenue Target, 9.5% of Gross Revenues between 65.01% and 85% of Revenue Target, 7% of Gross Revenues between 85.01% and 115% of Revenue Target and 4.5% of Gross Revenues exceeding 115% of Revenue Target. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Revenues | National brand fund |
| Total Investment Range | $93,400 – $245,800 | Includes build-out, inventory, working capital |
The investment range of $93K–$246K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (12% of Gross Revenues up to 65% of Revenue Target, 9.5% of Gross Revenues between 65.01% and 85% of Revenue Target, 7% of Gross Revenues between 85.01% and 115% of Revenue Target and 4.5% of Gross Revenues exceeding 115% of Revenue Target.) and marketing fee (3% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $65,000 |
| Real Property; Lease/ Security Deposit | $2,400 | $15,000 |
| Utility Deposits | $0 | $500 |
| Computer hardware and software | $1,800 | $4,800 |
| Business licensing | $500 | $2,000 |
| ACCET Fees | $1,200 | $2,000 |
| Insurance | $2,000 | $5,000 |
| Legal and accounting | $3,000 | $7,500 |
| Marketing, advertising expense | $0 | $15,000 |
| Initial Trainer Training Fee | $10,000 | $25,000 |
| Initial Training Travel Costs | $2,500 | $4,000 |
| Additional funds (6 months) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Renewal Fee | $2,500 |
| Technology Fee | For DCT Client Builder™ software: $495 upon signing Software License Agreement and $495 per year after first year. For e-mail: $51 upon signing Software License Agreement and $51 per year after first year. For Salesforce: Gold User License will be $31/user/month or $372/year; Platinum User License will be $118/user/month or $1,416 per year. |
| Audit Fee | If an audit reveals that you understated Gross Revenues by an amount greater than 5% but less than 10%, then you must immediately pay Dale Carnegie the additional amount owed, plus interest at the lesser of the maximum rate allowed by law or 18%, In addition, you must pay Dale Carnegie the full cost of the audit. |
| Required proprietary materials; optional purchase of other required materials | See Note 2. (Ranges from approximately $400 to approximately $2,500 for a single Carnegie Program) |
| ACCET Fee | $1,200 to $2,000 per year |
| Initial Trainer Training Fees | $10,000 to $20,000 depending on your Territory's Revenue Target |
| Sales Taxes | As incurred. |
| Late Charge | The greater of $100 or 5% of the amount due, plus interest from the date due until paid at the lesser of 18% or the maximum amount that the law allows. |
| Late Reporting Fee | 10% penalty on the Royalty that was generated from the report. |
| Liquidated Damages | $50 per day commencing 10 days after written notice specifying default until notice of cure |
| Code of Conduct Violation fee | $0 to $5,000 per occurrence |
| Indemnification of Dale Carnegie | You indemnify Dale Carnegie from certain losses and expenses – see Sections 8.14, 10.4 and 14.2 C. of the Franchise Agreement. |
| Attorneys’ fees and other costs | Actual fees and costs incurred. If Dale Carnegie wins any action brought by either Dale Carnegie or you under the Franchise Agreement, or if Dale Carnegie becomes a party to litigation or insolvency proceedings regarding your franchise or initiates any action related to your misuse of Confidential Information, then you will be liable for Dale Carnegie’s reasonable attorneys’ and experts’ fees and other litigation costs and expenses. |
| Product End Evaluations | US$225 to US$4,000 per year |
| Web Site | The amounts charged by applicable software and hardware vendors. |
| Optional Materials and Services which Dale Carnegie may offer. | See Note 12. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Franchise Partner Academy: up to fourteen (14) days. Apprenticeship Program: 5 working days. Trainer Certification Event: 6 days. |
| Classroom Training | Approximately 43 hours for Franchise Partner Academy and approximately 60 hours for DNA Trainer Certification. |
| Training Location | Melville, New York or such other location as we may designate |
| Additional Training | Ongoing Training: International conventions and regional meetings at least once every two years. Trainer Recertification Event every three years. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Generally, the minimum territory Dale Carnegie grants contains a population of at least one million people. |
| Description | The exclusive geographic area described in the Reference Provisions and Appendix B of the Franchise Agreement by a map or written description. Franchisee may relocate within the Territory, but not modify it. Dale Carnegie reserves rights for virtual training, strategic/preferred accounts, and other non-Core Programs within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 year initial term |
| Renewal Term | unlimited number of consecutive ten (10) year terms |
| Renewal Fee | $2,500 US |
| Renewal Conditions | Franchisee must not have failed to timely cure a default in the last 3 years, not committed an Event of Default, be current on all monetary obligations within 30 days, not received two or more valid Notices of Default within any continuous 6-month period within 2 years of expiration, be able to continue operations without interruption, execute a General Release, not be in receipt of an uncured Notice of Default, pay a $2,500 US renewal fee, and execute the then-current Franchise Agreement (which may have materially different terms). |
| Transfer Conditions | Franchisee must comply with right of first refusal, sell customer and trainer lists to transferee, proposed transferee must meet qualifications (skills, ethics, economic resources), proposed transferee and others must attend and successfully complete Franchise Academy and other training at their expense, transferor must have cured all defaults and satisfied all monetary obligations, transferee must sign then-current Franchise Agreement (which may differ), transferee owning 10% or more must sign a Guarantee, transferor and franchisor execute a General Release, transferor submits proposed contract 60 days prior, Office and Training Facilities must be upgraded, transferor remains liable for pre-transfer obligations, transferor complies with post-term non-compete, all other agreements transferred, franchisor's right to receive payments from transferee is superior to transferor's. |
| Termination for Cause | Automatic termination without notice for bankruptcy, insolvency, receivership, dissolution, or levy. Termination with notice (no opportunity to cure) for failure to offer Core Programs within specified times, failure to offer any programs for 365 days, material misrepresentation in application, failure to pay fees within 10 days of notice, felony/fraud charges, unauthorized transfer, failure to complete Franchise Academy, concealing revenues/falsifying records, audit showing >5% understatement of Gross Revenues, refusal of inspection/audit, failure to attend 3 consecutive Conventions, repeated defaults, willful misrepresentation to government, failure to comply with laws after 10 days notice, unauthorized use of Marks causing harm, failure to cure goodwill-impairing default after 72 hours, operating outside territory repeatedly, violating confidentiality, permitting uncertified trainers. Termination with 10 days to cure for permitting uncertified trainer for specific program, not submitting reports, offering unapproved services, conducting program outside territory without consent, not maintaining required insurance, unauthorized use of Marks not causing harm. Termination with 30 days to cure for other defaults. |
| Non-Compete Period | 1 year immediately following the expiration or termination |
| Non-Compete Details | No direct or indirect engagement in a Competitive Business for 1 year within the Territory, within 50 miles of the perimeter of the Territory, or within 50 miles of the perimeter of any company-owned or franchised Carnegie Business territory. No solicitation of clients or program participants for 2 years. No solicitation of franchisor or franchisee personnel for employment for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must participate personally in the direct operation of the business, devoting necessary time, best efforts, and adequate capital. If a business entity, a 'Franchisee Principal' must be appointed and approved by Dale Carnegie. On-site supervisors must attend and successfully complete Franchise Academy. Equity owners with more than 10% ownership must personally guarantee the franchisee's obligations. |
| Required Suppliers | Dale Carnegie or its designee is the only approved supplier of proprietary required materials. Franchisees must annually sublicense Office 365 and Salesforce from Dale Carnegie and license the proprietary DCT Client Builder™ software from Dale Carnegie. |
| Supply Restrictions | Franchisees must purchase all proprietary required materials from Dale Carnegie or its designee. These include materials relating to the Carnegie Programs, such as participant licenses for Dale Carnegie's eVolve training platform, participant manuals, trainer manuals, progress reports, trainer aids, coaching assistant guides, supplemental materials, advertisement and promotional materials, laboratory class assignments, audio and video recordings and booklets. |
| Franchisor Revenue from Suppliers | For the fiscal year ended August 31, 2021, Dale Carnegie’s revenues from the sale of proprietary and non-proprietary required materials to its franchisees was $1,282,000 or approximately 6.6% of Dale Carnegie’s total revenues of $19,544,000. |
Dale Carnegie Franchise Earnings — Item 19
Dale Carnegie does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Dale Carnegie Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dale Carnegie System Growth
Dale Carnegie currently operates 142 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 3 | 151 |
| 2020 | 4 | 14 | 141 |
| 2021 | 4 | 3 | 142 |
Transfers: 22 | Closures: 20
State Registrations
Registered in 17 states: CA, HI, IL, IN, KY, MD, MI, MN, NE, NY, ND, RI, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Dale Carnegie Franchise — FAQ
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