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 2024 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 2024 FDD
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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 2024 FDD, including information on the:
- 2023 average gross revenue and premium for the 1,258 franchise producers, representing 959 Goosehead Insurance franchised businesses, who were included in the charts because (a) they operated during Goosehead Insurance’s entire 2023 fiscal year (January 1, 2023 to December 31, 2023), (b) had a start date on or before January 1, 2023 and were still operating as of March 18, 2024, (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)
- 2023 average gross revenue and premium for the 136 corporate producers who were included in the charts because (a) they operated during Goosehead Insurance’s entire 2023 fiscal year (January 1, 2023 to December 31, 2023), (b) had a start date on or before January 1, 2023 and were still employed as of December 31, 2023, 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 2024 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 2024 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
2021
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- Outlets at the End of the Year: 1,198
- Net Change: +307
2022
- Outlets at the Start of the Year: 1,198
- Outlets at the End of the Year: 1,413
- Net Change: +215
2023
- Outlets at the Start of the Year: 1,413
- Outlets at the End of the Year: 1,226
- Net Change: +187
Company-Owned
2021
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 12
- Net Change: +4
2022
- Outlets at the Start of the Year: 12
- Outlets at the End of the Year: 11
- Net Change: -1
2023
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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.📈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: 11
- Outlets at the End of the Year: 12
- Net Change: +1
Section IV – News Updates on the Goosehead Insurance Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Goosehead Insurance Franchise (Item 19, 2024 FDD)
- Below Goosehead Insurance provides historical performance of producers for its franchisees and corporate during its fiscal year ended December 31, 2023.
- A “producer” for the purposes of this Item 19 is an individual who works for a franchisee as an agent or for Goosehead as a corporate sales employee and has devoted full-time efforts to a production role as of December 31, 2023.
- A “franchise producer” is a producer for a franchised business, and a “corporate producer” is a producer who works as an employee of Goosehead.
- Except as identified below, all franchisees and corporate producers that were in operation for at least one full year as of December 31, 2023, 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 2023 fiscal year (January 1, 2023 to December 31, 2023).
- “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 2023 fiscal year (January 1, 2023 to December 31, 2023).
Part 1 – Information for Franchise Producers (2023)
- There were 1,258 franchise producers, representing 959 franchised businesses, who were included in the charts because they operated during Goosehead Insurance’s entire 2023 fiscal year (January 1, 2023 to December 31, 2023) and met certain criteria, noted below.
- Each of the franchise producers included: (a) had a start date on or before January 1, 2023 and were still operating as of March 18, 2024, (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.
- 151 franchise producers who operated during the entire 2023 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, 2023.
A. Gross Revenue Per Franchise Producer (2023)
- Total Number of Franchise Producers: 1,258
Tenure: 1 Year
- Number of Franchise Producers: 339
- Average: $93,605
- Average of Top 25%: $191,625
- Average of Bottom 25%: $33,142
Tenure: 2 Years
- Number of Franchise Producers: 260
- Average: $154,082
- Average of Top 25%: $282,575
- Average of Bottom 25%: $67,019
Tenure: 3+ Years
- Number of Franchise Producers: 659
- Average: $326,986
- Average of Top 25%: $661,123
- Average of Bottom 25%: $115,635
B. Premium Per Franchise Producer (2023)
Tenure: 1 Year
- Number of Franchise Producers: 339
- Average: $642,391
- Average of Top 25%: $1,332,264
- Average of Bottom 25%: $223,400
Tenure: 2 Years
- Number of Franchise Producers: 260
- Average: $1,092,642
- Average of Top 25%: $1,990,718
- Average of Bottom 25%: $460,260
Tenure: 3+ Years
- Number of Franchise Producers: 659
- Average: $2,414,858
- Average of Top 25%: $4,929,385
- Average of Bottom 25%: $842,488
- 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 ($530 or $380 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 Corporate Producers (2023)
- There were 136 corporate producers who were included in the charts because they operated during Goosehead Insurance’s entire 2023 fiscal year (January 1, 2023 to December 31, 2023) and met certain criteria, noted below.
- Each of the corporate producers included: (a) had a start date on or before January 1, 2023 and were still employed as of December 31, 2023, 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 corporate sales production role at Goosehead Insurance as of December 31, 2023.
A. Gross Revenue Per Corporate Producer (2023)
- Total Number of Corporate Producers: 136
Tenure: 1 Year
- Number of Corporate Producers: 68
- Average: $156,454
- Average of Top 25%: $233,087
- Average of Bottom 25%: $95,471
Tenure: 2 Years
- Number of Corporate Producers: 25
- Average: $240,729
- Average of Top 25%: $325,085
- Average of Bottom 25%: $164,039
Tenure: 3+ Years
- Number of Corporate Producers: 43
- Average: $417,384
- Average of Top 25%: $620,782
- Average of Bottom 25%: $264,455
B. Premium Per Corporate Producer (2023)
Tenure: 1 Year
- Number of Corporate Producers: 68
- Average: $925,291
- Average of Top 25%: $1,396,673
- Average of Bottom 25%: $565,129
Tenure: 2 Years
- Number of Corporate Producers: 25
- Average: $1,494,198
- Average of Top 25%: $2,045,540
- Average of Bottom 25%: $1,027,907
Tenure: 3+ Years
- Number of Corporate Producers: 43
- Average: $2,780,793
- Average of Top 25%: $4,238,301
- Average of Bottom 25%: $1,713,487
- 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) ⬇️
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