In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Goosehead Insurance franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Goosehead Insurance franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Goosehead Insurance outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Goosehead Insurance franchise opportunity

Section V – Presentation and analysis of Goosehead Insurance’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average gross revenue and premium for the 986 franchise producers, representing 744 Goosehead Insurance franchised businesses, who were included in the charts because (a) they operated during Goosehead Insurance’s entire 2021 fiscal year (January 1, 2021 to December 31, 2021), (b) had a start date on or before January 1, 2021 and were still operating as of March 2, 2022, (c) worked for a franchisee that was, during that period, in compliance with, and not in default of, the franchise agreement, and (d) had a role where a majority of their time was dedicated to new business production, grouped by tenure (1 year, 2 years, and 3+ years)

• 2021 average gross revenue and premium for the 215 TWG producers who were included in the charts because (a) they operated during Goosehead Insurance’s entire 2021 fiscal year (January 1, 2021 to December 31, 2021), (b) had a start date on or before January 1, 2021 and were still employed as of December 31, 2021, and (c) had a role where a majority of their time was dedicated to new business production, grouped by tenure (1 year, 2 years, and 3+ years)

Section VI – Key ratios, comparables, computations, and analyses for the Goosehead Insurance franchise opportunity (exclusive content for Platinum subscribers)

Section I – Goosehead Insurance Franchise Costs

• Goosehead Insurance franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $25,000 to $60,000
• Leasehold Improvements, Furniture, Fixtures, Utilities:  $0 to $6,000
• Rent:  $0 to $4,000
• Signage and Media:  $0 to $2,500
• Office Equipment and Startup Supplies:  $5,000 to $8,000
• Insurance:  $2,000 to $5,000
• Licenses:  $500 to $1,000
• Professional Fees:  $1,000 to $5,000
• Training Expenses:  $500 to $7,000
• Additional Funds for 3 Months:  $6,000 to $20,000
• Total Estimated Goosehead Insurance Franchise Costs:  $40,000 to $118,500

Section II – Goosehead Insurance’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Goosehead Insurance’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $25,000 to $60,000
• Royalty Fee:  20% of Gross Revenues on Approved Insurance Products in their initial term and 50% of Gross Revenues on Approved Insurance Products in their renewal terms, subject to the Minimum Royalty
• Marketing Contribution:  up to 2% of Gross Revenues

Section III – Number of Franchised and Company-Owned Goosehead Insurance Outlets

Franchised

2019

• Outlets at the Start of the Year:  457
• Outlets at the End of the Year:  614
• Net Change:  +157

2020

• Outlets at the Start of the Year:  614
• Outlets at the End of the Year:  891
• Net Change:  +277

2021

• Outlets at the Start of the Year:  891
• Outlets at the End of the Year:  1,198
• Net Change:  +307

Company-Owned

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Goosehead Insurance Franchise

• Goosehead Insurance, Inc. Reiterates Full Year 2022 Outlook

• Goosehead Insurance, Inc. Announces First Quarter 2022 Results

• Goosehead Insurance Ranks No. 54 on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Goosehead Insurance Franchise (Item 19, 2022 FDD)

• Below Goosehead Insurance provides historical performance of its franchisees and “producers” of its franchisees during its fiscal year ended December 31, 2021.

• The franchisor’s affiliate, TWG, engages in the insurance services business under the name “Goosehead Insurance” and using the Proprietary Marks. TWG has been operating as a national independent insurance agency since 2003. The company has offices in Westlake, Texas; Coppell, Texas; Fort Worth, Texas; Houston, Texas; The Woodlands, Texas; Austin, Texas; San Antonio, Texas; Englewood, Colorado; Rosemont, Illinois; Henderson, Nevada; Charlotte, North Carolina; and Columbus, Ohio.

• A “producer” for the purposes of this Item 19 is an individual who works for a franchisee as an agent or for TWG as an employee and has devoted full-time efforts to a production role as of December 31, 2021.

• Except as identified below, all franchisees and TWG agents that were in operation for at least one full year as of December 31, 2021, are included.

• Two types of information are provided below, the average gross revenues per producer and the value of premiums generated per producer.

• Differences in state laws (for example, some states – like California and Florida – do not allow for the payment of “agency fees” whereas fees are allowed in Texas and Illinois) may negatively affect the results of franchisees and/or producers in certain states.

• The data used to compile the information in this Item 19 is derived from agency fees and sales commissions paid directly to Goosehead Insurance.

• “Gross Revenues” means the amount of Commissions and Agency Fees, net of reversals of Commissions for insurance policy cancellations or changes, and net of Agency Fee refunds, for the sale of Approved Insurance Products by the Franchised Business.

• Gross Revenues do not include any Premiums or Policy Fees collected by the Franchised Business on behalf of any Approved Carrier.

• The Gross Revenues noted in this Item 19 are the total Gross Revenues paid, on a cash basis, by Goosehead Insurance’s carriers to it and recognized during the 2021 fiscal year (January 1, 2021 to December 31, 2021).

• “Premiums” means fees owed to the Approved Carriers for Approved Insurance Products. The Premiums noted in this Item 19 are the Premiums from Goosehead Insurance’s insurance carrier statements recognized during the 2021 fiscal year (January 1, 2021 to December 31, 2021).

Part 1 – Information for Franchise Producers (2021)

• There were 986 franchise producers, representing 744 franchised businesses, who were included in the charts because they operated during Goosehead Insurance’s entire 2021 fiscal year (January 1, 2021 to December 31, 2021) and met certain criteria, noted below.

• Each of the franchise producers included: (a) had a start date on or before January 1, 2021 and were still operating as of March 2, 2022, (b) worked for a franchisee that was, during that period, in compliance with, and not in default of, the franchise agreement, and (c) had a role where a majority of their time was dedicated to new business production.

• 110 franchise producers who operated during the entire 2021 fiscal year were not included in the results because they did not meet these criteria.

• “Tenure” is defined as the number of full years an agent has devoted full time efforts to a production role as of December 31, 2021.

A. Gross Revenue Per Franchise Producer (2021)

• Total Number of Franchise Producers:  986

Tenure: 1 Year

• Number of Franchise Producers:  358
• Average:  $62,758
• Average of Top 25%:  $129,373
• Average of Bottom 25%:  $20,073

Tenure: 2 Years

• Number of Franchise Producers:  233
• Average:  $116,557
• Average of Top 25%:  $220,491
• Average of Bottom 25%:  $43,948

Tenure: 3+ Years

• Number of Franchise Producers:  395
• Average:  $234,376
• Average of Top 25%:  $453,769
• Average of Bottom 25%:  $82,371

B. Premium Per Franchise Producer (2021)

Tenure: 1 Year

• Number of Franchise Producers:  358
• Average:  $415,697
• Average of Top 25%:  $862,311
• Average of Bottom 25%:  $133,123

Tenure: 2 Years

• Number of Franchise Producers:  233
• Average:  $798,593
• Average of Top 25%:  $1,496,677
• Average of Bottom 25%:  $301,585

Tenure: 3+ Years

• Number of Franchise Producers:  395
• Average:  $1,633,366
• Average of Top 25%:  $3,203,464
• Average of Bottom 25%:  $571,946

• These charts do not reflect the costs that you may have in operating your Franchised Business, including your Royalty Fees and other fees that must be paid to Goosehead Insurance.

• You will incur costs and expenses in connection with operating your Franchised Business. These include, among others, royalty fees (20% to 50% of Gross Revenues on policies), occupancy costs, labor costs, debt/financing costs, marketing and advertising costs, software and support fees ($440 or $305 per user), computer hardware and software purchases and upgrades, legal and professional fees, income and other non-real estate taxes, and various other expenses.

Part 2 – Information for TWG Producers (2021)

• There were 215 TWG producers who were included in the charts because they operated during Goosehead Insurance’s entire 2021 fiscal year (January 1, 2021 to December 31, 2021) and met certain criteria, noted below.

• Each of the TWG producers included: (a) had a start date on or before January 1, 2021 and were still employed as of December 31, 2021, and (b) had a role where a majority of their time was dedicated to new business production.

• “Tenure” is defined as the number of full years an agent has devoted full time efforts to a production role at TWG as of December 31, 2021.

A. Gross Revenue Per TWG Producer (2021)

• Total Number of TWG Producers:  215

Tenure: 1 Year

• Number of TWG Producers:  101
• Average:  $107,393
• Average of Top 25%:  $161,907
• Average of Bottom 25%:  $65,824

Tenure: 2 Years

• Number of TWG Producers:  43
• Average:  $201,454
• Average of Top 25%:  $296,634
• Average of Bottom 25%:  $122,456

Tenure: 3+ Years

• Number of TWG Producers:  71
• Average:  $377,168
• Average of Top 25%:  $571,938
• Average of Bottom 25%:  $243,813

B. Premium Per TWG Producer (2021)

Tenure: 1 Year

• Number of TWG Producers:  101
• Average:  $564,724
• Average of Top 25%:  $844,497
• Average of Bottom 25%:  $340,623

Tenure: 2 Years

• Number of TWG Producers:  43
• Average:  $1,202,510
• Average of Top 25%:  $1,827,547
• Average of Bottom 25%:  $707,289

Tenure: 3+ Years

• Number of TWG Producers:  71
• Average:  $2,411,168
• Average of Top 25%:  $3,698,318
• Average of Bottom 25%:  $1,505,538

• Some agencies and producers have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Goosehead Insurance Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️