In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Brightway Insurance franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Brightway Insurance franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Brightway Insurance outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Brightway Insurance franchise opportunity
Section V – Presentation and analysis of Brightway Insurance’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 annualized premium (i.e., the amount of premium customers pay for policies in one year) for the 134 Agency Owners operating the 150 Included Retail Agency Locations for the 2022 calendar year, and the 64 Agency Owners operating the 64 Included Office Agency Locations for the 2022 calendar year
- 2022 average number of new business policies and new business annualized premiums generated by 370 Producers (299 Retail Agency Producers and 71 Office Agency Producers) of the 145 Retail Agencies and 63 Office Agencies that commenced operations and received commissions by December 31, 2021, were open and operating for the entire 2022 calendar year, and which employed at least one full-time Producer during calendar year 2022
- average and median number of new business policies sold annually and number of Producers for certain Retail Agency Locations and Office Agency Locations during their first and second years of operations
- average annual commissions paid to Retail Agency Locations during the calendar years ranging from 2010 to 2022, after taking into account the percentage of commissions retained by Brightway Insurance, by tenure (1 to 5+ years)
- 2022 average, median, highest, lowest revenue for 53 of the Included Retail Agency Locations that were open for 5 full years as of December 31, 2022 and met Brightway’s then-current staffing requirements
Section VI – Key ratios, comparables, computations, and analyses for the Brightway Insurance franchise opportunity (exclusive content for Platinum subscribers)
Section I – Brightway Insurance Franchise Costs
- Brightway Insurance franchise costs (retail agencies), based on Item 7 of the company’s 2023 FDD:
- Initial Fee: $25,000 to $50,000
- Lease Deposit and First Month’s Rent: $0 to $5,000
- Leasehold Improvements: $0 to $10,000
- Furniture, Furnishings, and Fixtures: $0 to $7,000
- Equipment: $1,400 to $5,500
- Signage: $4,500 to $12,500
- Professional Fees: $600 to $3,500
- Insurance Policies: $2,300 to $5,000
- Licensing Fees: $0 to $1,000
- Opening Advertising Expense: $0 to $4,500
- Additional Funds – 6 Months: $23,000 to $55,000
- Total Estimated Brightway Insurance Franchise Costs: $56,800 to $159,000
Section II – Brightway Insurance’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Brightway Insurance’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: Retail Agency: $50,000 if paid in lump sum, or $65,068 if a portion is financed by Brightway Insurance; Office Agency: $10,000
- Baseline Sales Commissions Retained – New Business: Retail Agency: 15% of Brightway Sales Commissions on New Business (you retain the remaining 85%); Office Agency (Commission Enhancement): 20% of Brightway Sales Commissions on New Business (you retain the remaining 80%); Office Agency (no Commission Enhancement): 40% of Brightway Sales Commissions on New Business (you retain the remaining 60%)
- Sales Commissions Retained – Renewal Business: Retail Agency: 45% of Brightway Sales Commissions on Renewal Business (you retain the remaining 55%); Office Agency: 50% of Brightway Sales Commissions on Renewal Business (you retain the remaining 50%)
- Other Advertising and Marketing Programs; Cooperative Advertising: reasonable cost
Section III – Number of Franchised and Company-Owned Brightway Insurance Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 239
- Net Change: +47
2021
- Outlets at the Start of the Year: 239
- Outlets at the End of the Year: 287
- Net Change: +48
2022
- Outlets at the Start of the Year: 287
- Outlets at the End of the Year: 285
- Net Change: -2
Company-Owned
2020
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 2
- Net Change: +1
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
Section IV – News Updates on the Brightway Insurance Franchise
- Brightway Insurance Earns Coveted Spot on Franchise Direct’s Top 100 Global Franchises List for 2022
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Brightway Insurance Franchise (Item 19, 2023 FDD)
- As of December 31, 2022, Brightway Insurance had 285 franchised Brightway Locations. The agency level data presented below sets forth the financial performance of certain subsets of these franchised Brightway Locations.
Part 1 – Summary of Annualized Premium by Agency Owner (2022)
- Part 1 provides a snapshot of the size of the book of business associated with each of the Included Retail Agency Locations and Included Office Agency Locations, which is a commonly-referenced metric used in the insurance industry to determine agency size.
- Annualized Premium is defined as the amount of premium customers pay for policies in one year; if a policy is issued in a six-month term, the premium amount is doubled.
A. Retail Agency Annualized Premium for Calendar Year Ending December 31, 2022
- The information presented below shows the Annualized Premium of the 134 Agency Owners operating the 150 Included Retail Agency Locations for the 2022 calendar year. The 150 Included Retail Agency Locations in Part 1 were open for more than 12 months as of December 31, 2022.
- The Annualized Premium of Brightway’s multi-unit owners are combined because the multi-unit owners are permitted to share business across their locations, and the number of multi-unit owners in each subset are shown below.
Over $25M
- Number of Agency Owners: 2
- Number of Multi-Unit Location Owners: 0
- Number of Locations: 2
- Number of Locations Operating Less Than 2 Years: 0
Between $15M and $25M
- Number of Agency Owners: 8
- Number of Multi-Unit Location Owners: 6
- Number of Locations: 6
- Number of Locations Operating Less Than 2 Years: 0
Between $10M and $15M
- Number of Agency Owners: 12
- Number of Multi-Unit Location Owners: 2
- Number of Locations: 11
- Number of Locations Operating Less Than 2 Years: 0
Between $8M and $10M
- Number of Agency Owners: 10
- Number of Multi-Unit Location Owners: 1
- Number of Locations: 12
- Number of Locations Operating Less Than 2 Years: 0
Between $6M and $8M
- Number of Agency Owners: 6
- Number of Multi-Unit Location Owners: 2
- Number of Locations: 6
- Number of Locations Operating Less Than 2 Years: 0
Between $4M and $6M
- Number of Agency Owners: 16
- Number of Multi-Unit Location Owners: 2
- Number of Locations: 17
- Number of Locations Operating Less Than 2 Years: 0
Between $3M and $4M
- Number of Agency Owners: 15
- Number of Multi-Unit Location Owners: 1
- Number of Locations: 15
- Number of Locations Operating Less Than 2 Years: 0
Between $2M and $3M
- Number of Agency Owners: 17
- Number of Multi-Unit Location Owners: 1
- Number of Locations: 22
- Number of Locations Operating Less Than 2 Years: 0
Between $1M and $2M
- Number of Agency Owners: 26
- Number of Multi-Unit Location Owners: 2
- Number of Locations: 30
- Number of Locations Operating Less Than 2 Years: 2
Under $1M
- Number of Agency Owners: 23
- Number of Multi-Unit Location Owners: 1
- Number of Locations: 31
- Number of Locations Operating Less Than 2 Years: 7
B. Office Agency Annualized Premium for Calendar Year Ending December 31, 2022
- The information presented immediately below shows the Annualized Premium of the 64 Agency Owners operating the Included Office Agency Locations for the 2022 calendar year. The 64 Included Office Agency Locations in Part 1 were open for more than 12 months as of December 31, 2022. As set forth above, the Included Office Agency Locations excludes 16 Office Agencies that converted to that model and were previously operated as Retail Agency.
- None of the Included Office Agency Locations were multi-unit owners during the disclosure period.
$3M to $4M
- Number of Agency Owners and Locations: 1
- Number of Locations Operating Less Than 2 Years: 1
$2M to $3M
- Number of Agency Owners and Locations: 1
- Number of Locations Operating Less Than 2 Years: 1
$1M to $2M
- Number of Agency Owners and Locations: 4
- Number of Locations Operating Less Than 2 Years: 3
$500K to $1M
- Number of Agency Owners and Locations: 17
- Number of Locations Operating Less Than 2 Years: 15
$200K to $500K
- Number of Agency Owners and Locations: 18
- Number of Locations Operating Less Than 2 Years: 18
$100K to $200K
- Number of Agency Owners and Locations: 11
- Number of Locations Operating Less Than 2 Years: 11
Under $100K
- Number of Agency Owners and Locations: 12
- Number of Locations Operating Less Than 2 Years: 12
Part 2 – New Business Policy Production by Producer (2022)
- Part 2 profiles the number of New Business policies and New Business Annualized Premiums generated by Producers of 145 Retail Agencies and 63 Office Agencies that commenced operations and received commissions by December 31, 2021, were open and operating for the entire 2022 calendar year, and which employed at least one full-time Producer during calendar year 2022, defined as a Producer who was associated with the agency for the entire 2022 calendar year and sold a minimum of 50 policies in 2022.
- Unlike Part 1 above, Part 2 does not exclude any Producers who worked for Brightway Locations that converted model types during their tenure because Part 2 does not present agency-level data.
- For the purposes of Item 19, “Producer” is defined as an individual who sells property and casualty insurance in Brightway Locations, including owners.
- New Business Annualized Premium is defined as the amount of premium customers pay for a new policy in one year; if a policy is issued in a six-month term, the premium amount is doubled.
- Included in Part 2 are 370 Producers who owned or were employed by the subset of Brightway Locations described above. Part 2 excludes any Producers who did not sell a minimum of 50 policies in 2022, in order to include only those individuals who have New Business production as a meaningful part of their jobs.
Average
- New Business Policies Sold Per Producer in 2022: 297
- New Business Annualized Premiums Per Producer: $592,462
- Number of Producers: 370 (299 Retail Agency Producers, 71 Office Agency Producers)
Part 3 – New Business Production by Agency (2022)
- Part 3 of this Item sets forth the number of New Business policies sold by certain Brightway Locations during their first and second years of operations.
- Part 3 shows information for those Brightway Locations that opened after January 1, 2020, did not convert model types, have at least one full year of operations as of the issuance date of the Disclosure Document, and remain open as of the issuance date of the Disclosure Document.
- In Part 3, each “Office Count” represents performance data for an Included Location during one 12-month period of operations. Depending on the opening date of the Included Location, either one or two years of performance data for each Included Office is represented in the table below.
A. New Business Production by Agency and Tenure – Retail Agencies
Year 1
- Average New Business Policies Sold Annually: 389
- Median New Business Policies Sold Annually: 452
- Average Number of Producers: 1.1
- Median Number of Producers: 1
- Office Count: 7
Year 2
- Average New Business Policies Sold Annually: 271
- Median New Business Policies Sold Annually: 247
- Average Number of Producers: 1.5
- Median Number of Producers: 2
- Office Count: 4
B. New Business Production by Agency and Tenure – Office Agencies
- The table below sets forth the new business production information described above for the Office Agencies which meet the specified criteria described above.
Year 1
- Average New Business Policies Sold Annually: 134
- Median New Business Policies Sold Annually: 89
- Average Number of Producers: 1
- Median Number of Producers: 1
- Office Count: 38
Year 2
- Average New Business Policies Sold Annually: 283
- Median New Business Policies Sold Annually: 198
- Average Number of Producers: 1.1
- Median Number of Producers: 1
- Office Count: 23
Part 4 – Annual Commissions Paid to Retail Agencies by Location (2010-2022)
- The information below reflects average commissions earned by Retail Agencies with at least one full calendar year of operations, grouped by tenure.
- Amounts shown are the commissions paid to Agency Owners during the calendar years ranging from 2010 to 2022, after taking into account the percentage of commissions retained by Brightway.
- Brightway Insurance has not been offering Office Agencies for five years. Accordingly, no Office Agencies are included in the data set forth in Part 4.
- “Tenure” is defined as the number of 12-month periods, or Tenure years, in which a Retail Agency received commissions.
- For all information presented in this Part 4, Tenure reflects full calendar years of business. Brightway Insurance does this to account for the ramp-up when a Brightway Location first commences operation and to normalize results. Therefore, if a store opened in July, that Location’s first full year starts in January of the following year.
- All Retail Agencies included in this chart had at least one full calendar year of operations on or before December 31, 2022, regardless of operational status as of that date.
Average
- Tenure – 1 Year: $57,661
- Tenure – 2 Years: $109,264
- Tenure – 3 Years: $158,663
- Tenure – 4 Years: $202,385
- Tenure: – 5+ Years: $374,109
Part 5 – Revenue of Established Brightway Locations (2022)
- Part 5 of this Item sets forth agency revenue information for established Brightway Locations. Included in Part 5 are 53 of the Included Retail Agency Locations that were open for five full years as of December 31, 2022 and meet Brightway’s then-current staffing requirements.
- The primary purpose of Part 5 is to show the revenue of mature, tenured Brightway Locations that have been in business five years or more.
2022
- Average Revenue Top 25%: $1,309,563
- Average Revenue: $681,066
- Average Revenue Bottom 25%: $253,736
- Median Revenue: $539,672
- High Revenue: $2,301,007
- Low Revenue: $109,685
Section VI – Brightway Insurance Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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