About Dealer Specialties International Franchise
Dealer Specialties International is a franchise that provides inventory merchandising and digital marketing services to automobile dealerships.
Backed by Dominion Enterprises, Inc., the brand helps car dealers photograph, describe, and promote their vehicle inventory across online marketplaces and dealer websites.
The franchise fee is $10,000, making it a low cost entry point into the automotive services industry.
Dealer Specialties International Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $10,000 | One-time payment upon signing |
| Royalty Fee | The greater of (a) $100 per Dealer Lot, or (b) 83¢ per unique vehicle identification number (VIN) uploaded. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3¢ per unique vehicle identification number (VIN) uploaded processed each Month. | National brand fund |
| Total Investment Range | $17,900 – $44,900 | Includes build-out, inventory, working capital |
The investment range of $18K–$45K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of (a) $100 per Dealer Lot, or (b) 83¢ per unique vehicle identification number (VIN) uploaded.) and marketing fee (3¢ per unique vehicle identification number (VIN) uploaded processed each Month.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Travel and Living Expenses While Training | $200 | $1,500 |
| Computer, Tablets, Camera, Laser Printer | $3,000 | $5,000 |
| Signs | $100 | $200 |
| Misc. Opening Costs | $1,000 | $20,000 |
| Insurance | $1,500 | $3,000 |
| Advertising -3 mos. | $100 | $200 |
| Additional Funds -3 mos. | $1,500 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000/$100 upon transfer |
| Renewal Fee | None |
| Audit Fee | 5% of understated balance |
| Clipping Fee | 65¢ per clipping |
| Photo Production | $1.75 per vehicle for and unlimited amount of photos.(individual or combined) |
| Territory Expansion | $500 |
| Additional Training | $1,000 |
| Interest | 1.5% per month |
| Operations Manual | $250/$25 |
| Insurance | Cost of required policies |
| Administrative Fee | $75 |
| Non-Participation | $1,000-$3,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 35.0 Hours over approximately 4 days |
| Classroom Training | 35.0 Hours |
| On-the-Job Training | 0 Hours |
| Training Location | Monroe, Ohio |
| Additional Training | If initial training is required for replacement managers, you shall pay the full expense incurred for their training, currently $1,500. If additional products or services are added, training will be provided through written materials and/or web-based sessions. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | NON-EXCLUSIVE, geographically defined territory |
| Exclusive Territory | No |
| Territory Size | a County or contiguous Counties (or their equivalents) |
| Description | You will be granted a NON-EXCLUSIVE, geographically defined territory. There is no guaranteed minimum size of a franchise territory. We may establish other franchised or company owned Businesses that may compete with you. We or an affiliate may use other channels of distribution such as the Internet, direct sales, telemarketing or other direct marketing, to make sales within your Territory. You must operate within this Territory and you are restricted from soliciting or accepting orders from outside the Territory. If we determine you are not actively marketing, selling and performing services, we may modify the Territory by removing inactive geographic areas. You have the right to apply for additional territories in contiguous areas, subject to our approval. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | not less than 5 years |
| Renewal Fee | None |
| Renewal Conditions | If you have performed all obligations under the original Agreement, given us proper notice (180 days prior to expiration, but not more than 1 year), and execute a general release, you can renew the franchise for an additional term, of not less than 5 years. You must sign our then-current form of franchise agreement, which may be materially different. |
| Transfer Fee | $5,000.00 (or $100 for name changes/transfers to wholly owned entities) |
| Transfer Conditions | Our prior written consent is required and will not be unreasonably withheld, and you must execute a general release. Conditions include: transferee is reputable, competent, with good credit; supervisor completes training; transferee executes a then-current Franchise Agreement, assignment, and other related documents; term is for the unexpired term; franchisor may request a guarantee of transferred obligations; all obligations to franchisor satisfied; and transfer fee paid. |
| Termination for Cause | If you do not cure a default within ten days of “Notice To Cure,” we can terminate your franchise immediately. Any default shall be curable within ten days of “Notice to Cure,” unless it occurs within 12 months of a prior default and receipt of “Notice to Cure.” We also may terminate the franchise if you are not active by operating it for six months or more or if you do not attend any of our events in any three calendar years or over any three 12-month periods. Non-curable defaults include insolvency, bankruptcy, assignment for creditor benefit, or a lien on property. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the Franchise Agreement and for two years thereafter, you may not directly or indirectly own, maintain, engage in, or participate in the operation of another directly competing business or employ anyone who participates in a competing business. After termination or expiration, for two years, you shall not divert customers or business from DSI, employ or seek to induce franchise employees, nor operate a vehicle Labeling business or a business competing with any products or services offered by DSI to you for resale to customers, or any other franchise Territory, within the Territory, a 50-mile radius of the Territory, or within 50 miles of any other DSI franchise or company-owned territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We allow absentee ownership; therefore you do not have to supervise the “on-premises” operations. However, you, your supervisor, or anyone who will participate in resolving technical problems must attend training because technical support is provided only to trained individuals. |
| Required Suppliers | You must purchase all products, services, supplies, and materials required for operation of the Business from manufacturers, suppliers, or distributors designated by us, which may be us or our affiliates, or from other such suppliers who meet all of our specifications and standards. |
| Supply Restrictions | You must purchase all products, services, supplies, and materials required for operation of the Business from manufacturers, suppliers, or distributors designated by us, which may be us or our affiliates, or from other such suppliers who meet all of our specifications and standards. Before purchasing supplies from manufacturers, suppliers or distributors other than those designated by us, you must submit a written request of “Notice of Intended Change of Supplier.” They will be evaluated based on whether they meet all of our specifications and standards as to quality, composition, finish, appearance, and service, and whether they adequately demonstrate their capacity and facilities to supply your needs in the quantities at the times, and with the reliability necessary to sustain an efficient operation. We have 180 days to respond with a “Notice of Objection.” Approval of an alternate supplier will not be unreasonably withheld. |
| Franchisor Revenue from Suppliers | In the period ending December 31, 2021, DSI and affiliates had revenues of $1,790,804 from labels, equipment and services to franchisees, out of total revenues of $2,731,136 or 65% of its total revenues. |
Dealer Specialties International Franchise Earnings — Item 19
Dealer Specialties International 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.
Dealer Specialties International 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.
Dealer Specialties International System Growth
Dealer Specialties International currently operates 41 franchised locations and 51 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 1 | 43 |
| 2020 | 0 | 1 | 42 |
| 2021 | 0 | 1 | 41 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Dealer Specialties International Franchise — FAQ
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