GOOSEHEAD INSURANCE

Item 19 reveals average gross revenues of $86,283 and median of $68,541 across comparable units, providing a realistic benchmark for operators leveraging Goosehead's carrier relationships and marketing tools. The $50,000 franchise fee unlocks a structure with steep royalties—20% on initial term premiums plus 50% on renewals (with minimums), 2% brand fund, and $590 monthly tech fee per primary user. Total ongoing costs can bite into margins, especially for lower-performing units near the median, but the model's centralized client management aims to boost retention and commissions from diverse carriers.

Network health shows 1009 franchise locations plus 13 corporates as of 2025 FDD, down 9% from 1103 in 2024, with 50 terminations signaling potential operator challenges—often tied to litigation over unpaid fees and abrupt exits. Yet, 97 projected new units and strong SBA stats (48 loans averaging $249,706, just 2.1% default rate) indicate lender confidence. Prospective buyers should scrutinize renewal commission splits in Item 7 estimates, validate Item 19 sample size and geographic relevance, audit litigation patterns for fee dispute risks, and model scenarios around the royalty minimums to gauge true profitability.