Goosehead
Goosehead Insurance Agency offers franchises to sell various insurance products from multiple carriers. Known for providing flexible business opportunities in the insurance sector.
About Goosehead
Goosehead franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Goosehead Insurance Agency business ranges between $66,000 and $111,500, which includes $50,000 to $65,500 that must or may be paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is an amount agreed upon between the Company and the franchisee, which must be paid in full before the franchisee or their representatives enroll in the initial training program. Once this training begins, the fee becomes non-refundable as compensation for administrative and other expenses incurred by the Company [p.75].
What are the ongoing royalty and advertising fees?
Ongoing royalty fees include payments based on the performance of policies sold by franchisees, with the exact percentage ranging from 20% to 50% of Gross Revenues. Additionally, there is an ongoing fee for using the required software, hardware, and other elements of the computer system [p.236, p.104]. Advertising fees are expensed as incurred; however, specific amounts are not provided in these excerpts [p.234].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has a 10-year term [p.232]. The ability to renew the agreement is not specified in these excerpts, but you should refer to Item 17 of the FDD for conditions related to renewal or extension [p.280] and [p.295].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, if you wish to transfer 5% or more of the outstanding interest in the Franchise Agreement, entity operating the Franchised Business, or the Franchised Business itself, you may need to pay a transfer fee. The fee is $5,000 if transferred to another current franchisee within the system and $50,000 otherwise [p.19]. This fee covers the franchisor's costs associated with reviewing the application and training the new franchisee. Certain transfers are exempt from this fee, including those for convenience of ownership, to immediate family members, or to an employee who has worked in the business for at least 24 consecutive months before the transfer [p.19].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law [p.280]. Additionally, they terminated a former franchisee's agreement based on credible allegations of serious unethical practices [p.11], indicating that such practices could also be a ground for termination.
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 or protected territory. According to [p.71], the Franchised Business is non-exclusive, and you acknowledge that no protected area or territory is granted to you. This means other franchisees, company-owned businesses, and other channels of distribution can operate nearby or in your intended territory.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training, onboarding, ongoing support, and use of its business operations over the period of the franchise agreement [p.236]. Additionally, they may require attendance at additional training sessions based on various factors such as the need for System-wide changes or performance issues [p.34], which can last from one day up to two weeks and may be conducted at their home office, your location, or another appropriate site [p.34]. This support is part of the transaction price set by the franchise agreement and revenue is recognized over time as these obligations are fulfilled [p.236].
How many franchised outlets are there, and how many have closed or been terminated?
According to the excerpts, as of the date of this Disclosure Document, there is a list of Goosehead Insurance franchisees (Exhibit E-1), but the exact number of franchised outlets is not specified. Additionally, it states that 34 Branch Location Amendment to Franchise Agreements have been signed, and there is a list of franchisees who have been terminated, cancelled, or ceased business operations during the year ended December 31, 2025 (Exhibit E-2), but the specific number of closed or terminated outlets is not provided.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information about its outlets under certain conditions, as detailed in Item 19 of the Disclosure Document. This can include actual records from existing outlets you are considering purchasing, or additional information supplementing what is provided in Item 19, such as possible performance at a specific location or under particular circumstances [p.48]. However, the franchisor does not make any representations about future financial performance and prohibits its employees or representatives from making such claims either orally or in writing [p.58].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering services and products only through the Franchised Business within the Approved State, and cannot sell from satellite locations, remote locations, virtual offices, temporary locations, mobile vehicles, or kiosks. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them; these items might be more expensive than those you could purchase elsewhere [p.3]. Additionally, you must obtain prior written approval before buying any products, services, or items from an unapproved supplier that stores or uses Confidential Information [p.85], and the same applies to buying from an unapproved carrier, broker, or supplier for insurance products [p.19].