Low Cost Business – Low Overhead, No Inventory
The average start-up cost to open a Dale Carnegie business is 20% lower than the average investment for businesses in the industry.
Please review the following information on the investment and fees you’ll need to get your franchise started, along with the financial performance of some of our existing franchise partners.
Investment and Franchise Fee
Although there are several qualities we look for in a franchise candidate, their financial position is one of high importance. Our experience has shown that having enough capital launch and run the business successfully is a key success factor.
Here’s a basic breakdown of the costs associated with opening and maintaining a Dale Carnegie Training franchise.
Net Worth and Liquid Capital
We require franchisees to have a minimum net worth of $500,000, and have at least $150,000 in liquid capital depending on the size and location of your territory. Having the appropriate amount of liquid capital will help you manage the expenses of the business before you’ve established a regular client base.
The Initial Franchise Fee you are required to pay will vary depending on the size and potential (“Revenue Target”) of your territory at the time you enter into the Franchise Agreement with us. A breakdown of the franchise fee you’ll be expected to pay according to the Revenue Target of your desired territory is shown on the chart below:
From $1,500,001 up to and including $2,500,000
From $2,500,001 up to and including $3,500,000
In addition to your investment and Franchise Fee, there are a number of other fees to consider. For instance, royalties, trainer training fees, and the cost of our proprietary software are important expenses to keep in mind. Below is a breakdown of these and the other additional fees you should expect to pay as a Dale Carnegie Training franchisee:
1. ACCET Fee – Only applicable to US-based franchises (Accrediting Council for Continuing Education & Training): You will pay to us the ACCET Fee for the accreditation of your training franchise prior to commencement of any training classes and annually thereafter. The ACCET fee is anticipated to be $1,200, subject to increases in fees by the Accrediting Counsel for Continuing Education and Training. We do not anticipate that any increases would require you to pay more than $2,000.
2. Trainer Training Fees (Only applicable if there are no qualified trainers in the Territory): Your trainer training fee will vary based upon the Territory’s Revenue Target. If your Territory Revenue Target is $1,000,000 or less your fee will be $10,000 for up to two trainer candidates. If your Territory Revenue Target is over $1,000,000, your fee will be $20,000 for up to four trainer candidates.
a. 12% of Gross Revenues up to 65% of Revenue Target,
b. 9.5% of Gross Revenues between 65.01% and 85% of Revenue Target,
c. 7% of Gross Revenues between 85.01% and 115% of Revenue Target and
d. 4.5% of Gross Revenues exceeding 115% of Revenue Target.
4. Marketing Contribution: 3% of Gross Revenues.
5. Product End Evaluations: $225 to $4,000 per year
6. Dale Carnegie Computer System & Software: $1,923+ (depending on number of users)
Earnings Potential: Financial Performance
The Federal Trade Commission’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets if there is a reasonable basis for the information. With the Franchise Rule in mind, we’ve provided the information on Analysis of Median Sales and Expenses below for your consideration. We hope that you’ll find it useful in understanding more about the earnings potential for the territory you’re considering.
Analysis of Median Sales and Expenses
The information below was aggregated from data submitted, to an independent third party, by 23 out of 73 franchisees in the U.S. who were in operation for at least one year as of August 31, 2016.
Keep in mind, you should not consider these as the actual or potential sales or operating expenses that will be realized by you or any other franchisee. We do not represent that any franchisee can expect to attain these results. A new franchisee’s financial results are likely to differ from those shown in these charts and will depend on many factors, some of which include competition and overall economic conditions, along with your experience, marketing abilities and skill in managing a business. For more information regarding this survey, please review Item 19 of our Franchise Disclosure Document.
Median Financial Benchmark Ratios by Revenue Range - 2016
United States Franchises Only
Owner’s Discretionary Profit
Please note: The percentages DO NOT add down because each percentage is the median of that category.
Although Dale Carnegie does not provide financing, there are many funding sources, including but not limited to: