About DCAP Insurance/The Tax Zone Franchise
DCAP Insurance/The Tax Zone is a dual concept franchise that combines insurance brokerage services with tax preparation under one roof.
The brand has been franchising since 2009, serving communities that need accessible, affordable insurance and tax solutions at neighborhood storefronts.
The franchise fee ranges from $12,500 to $25,000, making it one of the more affordable franchise opportunities in the financial services sector.
DCAP Insurance/The Tax Zone Franchise Cost & Fees
Minimum Investment
$18K
Average Investment
$64K
Maximum Investment
$110K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $12,500 - $25,000 | One-time payment upon signing |
| Royalty Fee | 20% of annual Gross Sales (The Tax Zone) or $825/month increasing 5% annually (DCAP Insurance) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | DCAP: $425 - $750 per month; The Tax Zone: Variable, up to $10,000 in year 1, up to $20,000 in year 2 | National brand fund |
| Total Investment Range | $17,750 – $109,900 | Includes build-out, inventory, working capital |
The investment range of $18K–$110K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (20% of annual Gross Sales (The Tax Zone) or $825/month increasing 5% annually (DCAP Insurance)) and marketing fee (DCAP: $425 - $750 per month; The Tax Zone: Variable, up to $10,000 in year 1, up to $20,000 in year 2) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Start-Up DCAP) | $25,000 | $25,000 |
| Leasehold Improvements (Start-Up DCAP) | $0 | $10,000 |
| Furniture, Fixtures and Equipment (Start-Up DCAP) | $3,000 | $6,000 |
| Computer (Start-Up DCAP) | $1,200 | $2,400 |
| Signage (Start-Up DCAP) | $2,000 | $4,000 |
| First and Last Month’s Rent and Security (Start-Up DCAP) | $2,000 | $4,000 |
| Security Deposit (Utilities) (Start-Up DCAP) | $250 | $500 |
| Opening Supplies (Start-Up DCAP) | $250 | $500 |
| Grand Opening Advertising (Start-Up DCAP) | $500 | $4,000 |
| Training Expenses (Start-Up DCAP) | $0 | $0 |
| Miscellaneous Opening Costs (Start-Up DCAP) | $2,500 | $3,500 |
| Advertising Fee – 3 months (Start-Up DCAP) | $0 | $0 |
| Service fees – 3 months (Start-Up DCAP) | $0 | $0 |
| Additional Funds – 3 months (Start-Up DCAP) | $25,000 | $50,000 |
| Initial Franchise Fee (Conversion DCAP) | $12,500 | $12,500 |
| Leasehold Improvements (Conversion DCAP) | $0 | $0 |
| Furniture, Fixtures and Equipment (Conversion DCAP) | $0 | $0 |
| Signage (Conversion DCAP) | $2,000 | $4,000 |
| First and Last Month’s Rent and Security (Conversion DCAP) | $0 | $0 |
| Security Deposit (Utilities) (Conversion DCAP) | $0 | $0 |
| Opening Supplies (Conversion DCAP) | $250 | $500 |
| Grand Opening Advertising (Conversion DCAP) | $500 | $4,000 |
| Training Expenses (Conversion DCAP) | $0 | $0 |
| Miscellaneous Opening Costs (Conversion DCAP) | $2,500 | $3,500 |
| Advertising Fee – 3 months (Conversion DCAP) | $0 | $0 |
| Service Fee – 3 months (Conversion DCAP) | $0 | $0 |
| Additional Funds – 3 months (Conversion DCAP) | $0 | $0 |
| Franchise Fee (The Tax Zone) | $25,000 | $25,000 |
| Lease Deposits (The Tax Zone) | $1,000 | $3,000 |
| Rent (The Tax Zone) | $2,000 | $6,000 |
| Leasehold Improvements (The Tax Zone) | $3,000 | $10,000 |
| Furniture, Fixtures and Equipment (The Tax Zone) | $3,000 | $6,000 |
| Computer/Software (The Tax Zone) | $2,000 | $4,000 |
| Signage (The Tax Zone) | $1,000 | $4,000 |
| Initial Advertising (The Tax Zone) | $1,000 | $6,000 |
| Miscellaneous Opening Costs (The Tax Zone) | $4,000 | $7,000 |
| Additional Funds (The Tax Zone) | $6,000 | $9,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | DCAP: 50% of the then-current initial franchise fee; The Tax Zone: 25% of the then-current initial franchise fee (or $5,000 for family/existing owner) |
| Renewal Fee | None |
| Technology Fee | The Tax Zone: $20 - $100 per month; DCAP: null |
| Audit Fee | The Tax Zone: Cost of audit if understatement of 2% or more of Gross Sales; DCAP: null |
| DCAP Additional Training | $185 - $200 per day or $925 - $1,000 for initial training of additional personnel |
| DCAP Interest on Overdue Amounts | Lesser of 2% above prime or highest contract rate allowed by law |
| DCAP Manuals Fee | $1 (lease payment) |
| DCAP Income Taxes | Cost of all income, sales, and other taxes arising from intellectual property licensing |
| The Tax Zone Late Charge | 1.5% per month |
| The Tax Zone Expense Reimbursement | Actual cost |
| The Tax Zone Legal Fees | Variable |
| The Tax Zone Additional Training and Conventions | Cost of producing materials plus out-of-pocket costs |
| Indemnification (both) | Variable depending on circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 5 days for DCAP Centers; approximately 22 classroom hours for The Tax Zone Tax Service Offices |
| Classroom Training | DCAP: 16-40 hours; The Tax Zone: 22 hours |
| On-the-Job Training | DCAP: 0-160 hours; The Tax Zone: 0 hours |
| Training Location | Franchisor's headquarters in Hicksville, New York, or on-site for DCAP Centers |
| Additional Training | Optional or required refresher courses, seminars, and conventions may be offered, with fees ranging from $185-$200 per day for DCAP, and costs for materials and out-of-pocket expenses for The Tax Zone. Online tutorials and mandatory annual conventions may also be required for The Tax Zone. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (The Tax Zone Protected Area) or Non-exclusive (DCAP Primary Area of Responsibility) |
| Exclusive Territory | Yes |
| Territory Size | For DCAP Centers, a minimum of one zip code or up to a quarter-mile radius in suburban areas. For The Tax Zone Tax Service Offices, generally a zip code with at least 21,000 individuals, but can vary based on population density. |
| Description | Geographic areas defined by zip code, town, county, or city boundaries, with The Tax Zone territories typically based on zip codes with a minimum population of 21,000 individuals. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (DCAP: successive automatic; The Tax Zone: up to five successive automatic) |
| Renewal Fee | None |
| Renewal Conditions | For DCAP Centers, automatic renewal if in good standing and substantial compliance, may require signing a new contract with different terms (territory and fees remain similar). For The Tax Zone Tax Service Offices, up to five successive 10-year terms, requiring signing a new agreement (potentially with different terms), executing a general release, and completing retraining. |
| Transfer Fee | DCAP: 50% of the then-current initial franchise fee; The Tax Zone: 25% of the then-current initial franchise fee (or $5,000 for family/existing owner) |
| Transfer Conditions | Transferee must meet current franchisee qualifications, all monetary obligations and defaults must be cured, a general release of claims (for The Tax Zone) must be executed, transferee must complete training, and a new franchise agreement (and transfer fee) must be signed. |
| Termination for Cause | The franchisor may terminate the agreement for various curable defaults (typically 14-30 days to cure) or immediately for incurable defaults such as bankruptcy, felony conviction, abandonment, unapproved transfers, failure to maintain licenses, or repeated violations. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisees cannot divert business or operate a competing business. Post-termination/expiration, a non-compete applies for 2 years within the former territory (Primary Area of Responsibility for DCAP, Protected Area for The Tax Zone) or within a 25-mile radius (DCAP) or 10-mile radius of the former office/5-mile radius of any other Tax Zone office (The Tax Zone). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | For DCAP Centers, the franchisee must directly supervise operations or employ a trained manager. For The Tax Zone Tax Service Offices, an on-premises manager who has completed training is required to supervise the business, and the franchisee has no obligation to participate in actual operation. Managers must sign confidentiality and non-compete agreements. |
| Required Suppliers | For DCAP Centers, Capital Payment Plan/IPFS Corp. is required for premium financing, and all other supplies, materials, and insurance products must be from designated or approved suppliers. For The Tax Zone Tax Service Offices, approved suppliers for electronic tax return filing services, Bank Products, and tax preparation software (currently Tax Slayer Pro Software) are required. |
| Supply Restrictions | The franchisor maintains the right to approve or disapprove all products and services offered, and to designate single suppliers for certain items. Franchisees must adhere to quality control standards and specifications for all purchases. Suppliers selected by franchisees must meet franchisor's approval criteria including quality, price, availability, financial soundness, and necessary licenses. |
| Franchisor Revenue from Suppliers | For DCAP Centers, the franchisor receives less than 1.5% of premiums financed through Capital Payment Plan/IPFS Corp. and may receive loss ratio overrides from Progressive Insurance. In 2021, $77,000 in rebates were received from DCAP Center transactions. For The Tax Zone Tax Service Offices, the franchisor reserves the right to collect allowances, rebates, or other benefits from suppliers of electronic filing services, tax preparation software, and Bank Products, but reported no such revenue from required purchases in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | For DCAP Centers, the franchisor may finance the initial franchise fee for up to three years at 8.5% interest, with no penalty for early payoff of principal. For The Tax Zone Tax Service Offices, the franchisor may finance up to $20,000 of the initial franchise fee at 0% interest for one to three years, with annual payments of at least $6,666.66 and mandatory prepayments based on tax return volume. No security interest in assets is required for The Tax Zone financing. The franchisor does not guarantee third-party financing. |
DCAP Insurance/The Tax Zone Franchise Earnings — Item 19
DCAP Insurance/The Tax Zone does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
DCAP Insurance/The Tax Zone 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.
DCAP Insurance/The Tax Zone Litigation & Risk Flags
Clean Litigation RecordDCAP Insurance/The Tax Zone has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DCAP Insurance/The Tax Zone System Growth
Total Units
39
Franchised
37
Company-Owned
2
DCAP Insurance/The Tax Zone currently operates 37 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 5 | 45 |
| 2020 | 2 | 3 | 48 |
| 2021 | 2 | 4 | 46 |
Transfers: 2 | Closures: 12
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
DCAP Insurance/The Tax Zone Franchise — FAQ
The total investment to open a DCAP Insurance/The Tax Zone franchise ranges from $17,750 to $109,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $12,500 - $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
DCAP Insurance/The Tax Zone charges a royalty fee of 20% of annual Gross Sales (The Tax Zone) or $825/month increasing 5% annually (DCAP Insurance) of gross sales, plus a DCAP: $425 - $750 per month; The Tax Zone: Variable, up to $10,000 in year 1, up to $20,000 in year 2 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DCAP Insurance/The Tax Zone Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from DCAP Insurance/The Tax Zone to ensure you have the most up-to-date version.
DCAP Insurance/The Tax Zone does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
DCAP Insurance/The Tax Zone has been franchising since 2009. The FDD shows an investment range of $17,750-$109,900, a 20% of annual Gross Sales (The Tax Zone) or $825/month increasing 5% annually (DCAP Insurance) royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $12,500 - $25,000 and the total investment ranges from $17,750 to $109,900 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from DCAP Insurance/The Tax Zone and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with DCAP Insurance/The Tax Zone or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com