Detailed Estimates of Brightway Insurance Franchise Costs Based on Item 7 (Estimated Initial Investment) of Brightway Insurance’s 2018 Franchise Disclosure Document
1. Initial Fee: $60,000
2. Lease Deposits: $1,200 to $3,200
3. Real Property Lease: $0 to $3,200
- Brightway Insurance expects that you will lease the location for your Brightway Store. A typical Brightway Store 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.
- You may be required to pay the first and last months’ lease payment upon signing your lease agreement.
- Lease agreements may include the following expenses: taxes, insurance, maintenance, fixed rent (with escalations), percentage rent, and other charges related to the operation of the Brightway Store.
- Brightway Insurance’s current estimate includes high and low‐end projections for the amount you will spend to cover three months of rent.
4. Leasehold Improvements: $5,000
- Brightway Stores do not require extensive build‐out. In new retail space, you may expect to install carpet and paint interior walls.
- 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.
5. Utility and Internet Service Deposits: $0 to $1,000
6. Furniture, Furnishings, and Fixtures: $3,500 to $6,900
- You must purchase certain furniture and fixtures in order to operate your Brightway Store. The Brightway Store will require one desk and chair for each person working at the Brightway Store.
- 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.
7. Equipment: $4,970 to $8,500
- You must purchase certain equipment according to Brightway Insurance’s Technology Specifications. You are required to maintain one laptop computer (properly configured for use within the System) for each person working at the Brightway Store. 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, setup, and warranty plans for this equipment, as your estimated initial expense.
8. Telephone System and Installation: $190 to $510
- The telephone system acquired and utilized by your Brightway Store must at all times be the system then-authorized for use by Brightway Insurance. Currently, Brightway Insurance has a designated telephone system.
- The high and low‐end estimates reflect the cost of Brightway Insurance’s current requirement that you purchase and install its current phone systems as a cloud‐based technology solution.
- This estimate reflects the cost of installation, which will either be paid directly to Brightway Insurance’s vendor or to Brightway Insurance (which it then passes through directly to the vendor).
9. Signage: $1,500 to $6,500
- The type of signage to be installed at your premises is governed by local ordinances and lease provisions regarding height and size restrictions.
- Channel‐lit exterior signage that covers an area of 2’ by 10’ can be acquired and installed for approximately $5,000. Additional marquee signs are also required.
- Interior signage includes five interior signs and a painted accent wall with Brightway Insurance’s logo and other verbiage, with an approximate cost of $1,000.
- Subject to compliance with applicable laws and regulations, you must acquire all signs as required by Brightway Insurance for use at or in connection with your Brightway Store.
- All signage must conform to the Brightway System exterior signage specifications and must be submitted to Brightway Insurance for approval prior to purchase and installation.
10. Professional Fees: $2,000 to $4,500
- These figures represent the estimated costs of engaging an attorney or other business professionals to review the Disclosure Document and the accompanying agreements, to assist you in organizing a business entity, and to help you obtain required licenses and permits.
11. Initial Training Expenses: $0 to $7,500
- Brightway Insurance does not charge you for the initial training provided to your principal and two other employees.
- The new hire set‐up fee applicable to any additional trainees will be set forth in the 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.
12. Opening Advertising: $0 to $3,000
- Brightway Insurance strongly recommends that you conduct an opening advertising program to promote the opening of your Brightway Store during the first 60 days following your soft opening.
- The amount of advertising will be dependent on the unique circumstances of each Associate Agency Owner (AAO), and Brightway Insurance will work with you to determine an appropriate amount during the time period following the execution of the Franchise Agreement and prior to your opening.
13. Insurance Policies: $3,000 to $4,700
- 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.
- Brightway Insurance will endorse its Errors and Omissions insurance policy to provide Errors and Omissions insurance coverage for you, and the estimated amount also includes the initial expense for this Errors and Omissions coverage, which will not be paid directly to Brightway Insurance but will be offset against the commission payments that it makes to you.
14. Licensing Fees: $0 to $2,000
- You are responsible for obtaining certain license(s) required by the state in which you are located. The estimate above also includes the cost of any appointment fees and state continuing education costs associated with maintaining your license(s).
15. Additional Funds – 6 Months: $42,000
- These figures are an estimate of your operating expenses for the initial six months of business. They include payroll, taxes, insurance, supplies, utilities, licenses and permits, bank charges, and repair and maintenance expenses. They do not include the portion of commissions withheld by Brightway Insurance.
- This estimate assumes that you will employ at least two other individuals to work full‐time writing New Business from your Brightway Store at the time you commence operations, which is something that Brightway Insurance recommends under the Franchise Agreement in order to maximize your chances of success and to maintain its System standards.
16. Total Estimated Initial Investment: $123,360 to $158,510