Updated March 17, 2021.
Detailed Estimates of Brightway Insurance Franchise Costs Based on Item 7 (Estimated Initial Investment) of Brightway Insurance’s 2020 Franchise Disclosure Document
1. Initial Fee: $60,000
2. Initial Lease Deposit: $1,000 to $5,000
- Brightway Insurance expects that you will lease the location for your Brightway Location. A typical Brightway Location will occupy approximately 900 to 1,300 square feet of space. Lease payments will vary considerably depending upon the property size, type of transaction, and location.
- The low-end estimate above assumes that the initial lease deposit will be one month of rent and the high-end estimate above assumes that the initial lease deposit will be two months of rent.
- Lease agreements may also include the following expenses: taxes, insurance, maintenance, fixed rent (with escalations), percentage rent, and other charges related to the operation of the Brightway Location.
3. Leasehold Improvements: $5,500 to $10,000
- Brightway Locations do not require extensive build-out; however, Brightway Insurance permits franchisees who wish to do so to spend additional sums on leasehold improvements (though these additional amounts are not incorporated into the estimates above).
- In new retail space, you may expect to install carpet, paint, cabling, and limited interior walls. There may also be plumbing or electrical costs.
- You should check with the relevant regulatory agencies to identify costs for required building permits, impact fees, taxes, bonds, licenses, and other fees, which can vary dramatically depending on the location.
- The low-end estimate above assumes that the landlord covers the cost of most of the leasehold improvements.
4. Furniture, Furnishings, and Fixtures: $1,000 to $7,000
- You must purchase certain furniture and fixtures in order to operate your Brightway Location. The Brightway Location will require one desk and chair for each person working at the Brightway Location.
- Other items include desks, guest chairs, and miscellaneous reception area and back‐office furniture, which currently must be purchased from Brightway Insurance’s required vendor.
5. Equipment: $1,000 to $10,000
- You must obtain certain equipment according to Brightway Insurance’s Technology Specifications. You are required to maintain one computer (properly configured for use within the System and purchased from Brightway Insurance’s required vendor) for each producer working at the Brightway Location. You will also need a multi-function device that acts as a printer, scanner, and copier; headsets; IP Phones; and other miscellaneous equipment.
- The estimate above includes the cost of each of these items, in addition to monitors, laptop(s), operating software, Internet and other technology setup, and warranty plans for this equipment, as your estimated initial expense.
- The low-end estimate above assumes you are renting the majority of these items through Brightway Insurance’s equipment leasing program, and the high-end estimate above assumes you are paying the full purchase price of these items.
6. Signage: $3,000 to $12,500
- The type of signage to be installed at your premises is governed by local ordinances and lease provisions regarding height and size restrictions.The types and amount of signage will vary based on the type of location, landlord requirements, and city/municipality requirements.
- The low-end estimate above assumes that you will have standard interior signage and that the landlord will cover the cost of any exterior signage.
- All signage must conform to the Brightway System specifications and must be submitted to Brightway Insurance for approval prior to purchase and installation.
- You may be required to use Brightway Insurance’s required vendor for signage.
7. Professional Fees: $500 to $3,500
- These figures represent the estimated costs of engaging an attorney, CPA, or other business professionals to review the Disclosure Document and the accompanying agreements, to assist you in organizing a business entity and setting up your books, and to help you obtain required licenses and permits.
8. Initial Training Expenses: $0 to $6,000
- Brightway Insurance does not charge you for the initial training program.
- The new hire set‐up fee applicable to any additional trainees will be set forth in the Confidential Operations Manual and is subject to change from time to time at Brightway Insurance’s sole discretion.
- In addition, you must pay the costs of transportation, lodging, and food for your principal and other employees during training. The amount of these expenses will depend on the distance you must travel, type of accommodations, the number of your employees attending training, and their wages.
- The low-end estimate assumes that you live near to Brightway Insurance’s corporate headquarters and attend training by yourself. The high-end estimate assumes that you live remotely and that you will attend initial training with another individual.
- Generally, any individuals in addition to the first two will be trained remotely.
9. Insurance Policies: $2,300 to $5,000
- The estimated amount above includes the initial cost of the professional insurance policies that you will need to obtain and maintain according to Brightway Insurance’s standards and specifications.
10. Licensing Fees: $0 to $1,000
- You are responsible for obtaining certain license(s) required by the state in which you are located. The estimate above also includes any initial education costs associated with obtaining your licenses.
- The low-end estimate assumes that you have insurance experience and already possess the licenses necessary to operate your Brightway Location.
11. Additional Funds – 6 Months: $24,000 to $55,000
- These figures are an estimate of your operating expenses for the initial six months of business. They include payroll, rent, taxes, insurance, supplies, utilities, technology costs, licenses and permits, bank charges, and repair and maintenance expenses.
- They also include the costs of an opening advertising program, which will generally consist of primarily grassroots advertising but may involve printing and other costs necessary to generate referral sources.
- They do not include the portion of commissions withheld by Brightway Insurance.
- The low-end estimate assumes that you will employ one other individual to work full-time writing New Business from your Brightway Location, and that you will have strong initial sales.
- The high-end estimate assumes that you will employ two other individuals to work full-time writing New Business from your Brightway Location, which is something that Brightway Insurance recommends under the Franchise Agreement in order to maximize your chances of success. The high-end estimate also assumes you will have low initial sales.
12. Total Estimated Initial Investment: $98,300 to $175,000