Brightway Insurance
Brightway Insurance franchises offer property and casualty insurance sales and services. Known for comprehensive coverage options, this Florida-based company supports Agency Owners with scalable operations across multiple locations. Operating in the insurance sector.
Brightway Insurance franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Brightway franchise ranges from $43,425 to $186,900. This includes an amount ranging from $25,000 to $35,000 that must be paid to the franchisor or its affiliate(s). [p.1]
What is the initial franchise fee?
The initial franchise fee for an Agency ranges from $25,000 to $35,000. You can pay it in a lump sum of $25,000 or in monthly installments totaling $35,000 [p.14]. This fee is non-refundable and deemed fully earned upon payment [p.14, p.87].
What are the ongoing royalty and advertising fees?
The franchisee must pay a continuing monthly royalty fee to GLOBAL, but the specific amount is not detailed in the excerpts. Additionally, the franchisee must contribute an amount not exceeding 3% of their Brightway Sales Commissions on a monthly basis to the Advertising Fund, which will be used by Brightway at its discretion for advertising and marketing purposes [p.36-37].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has a term of five (5) years [p.163]. You may have the option to renew this agreement for successive terms of five (5) years each, but you must not be in default under the agreement and must comply with Brightway's then-current terms and conditions for granting renewal franchises [p.138].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.256]. Unauthorized transfer of the franchise or any interest in it would be in violation of Section 13 hereof [p.167].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, such as the failure of the franchisee to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice and a reasonable opportunity to do so, which cannot exceed 30 days [p.256]. Additionally, Indiana law (Indiana Code Section 23-2.2.7-1) prohibits a franchisor from terminating a franchise without good cause or refusing to renew a franchise on bad faith [p.252].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.43]. The franchise agreement does not provide territorial protection against Brightway locating another Brightway Location near your location [p.284]. You may face competition from other franchisees, company-owned outlets, or competitive brands controlled by the franchisor [p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides initial mandatory training covering Brightway systems, marketing, sales, office procedures, and other necessary matters to ensure successful operation [p.40]. This training is conducted by the Brightway training team, supervised by Mary Roper, and includes proprietary materials such as manuals and online curriculum [p.41]. Ongoing support includes the right to require additional training at any time deemed necessary or appropriate by the franchisor, which may be charged for [p.40-41].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares certain historical revenue and production data for Brightway Locations [p.55]. However, this information does not include costs that must be deducted from gross revenue to obtain net income [p.248]. The franchisor also states that it does not make any financial performance representations other than those specified in Item 19 of the FDD [p.60].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only products and services approved by Brightway and the Contracted Companies. You must use commercially reasonable efforts to sell authorized lines of business as determined by Brightway. This includes securing required licenses and not conducting any unauthorized business. Regarding supplies, you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].