Freeway Insurance

Can you provide a detailed breakdown of the 1 unit closure and 1 termination that occurred in 2023? What were the specific circumstances and reasons?

The ad fund rate of 7.0% is significantly above the typical range of 1.5-4.0% for insurance franchises. How is this additional revenue allocated and what specific marketing benefits do franchisees receive?

The monthly technology fee of $650 exceeds the typical range. What specific technology platforms and tools are included, and are there any options to reduce this fee?

With 0% unit turnover, closure, and transfer rates in the past year, how representative are these figures given typical industry volatility? Can you explain the specific factors driving this exceptional stability?

The contract identifies 24 termination causes, above the typical range of 15-23. Can you provide the complete list and clarify which causes are most frequently cited?

The personal guarantee and indemnification clause requires spouses to guarantee obligations. Can you clarify what specific scenarios would trigger spousal liability and provide examples of claims pursued?

The operational control clause restricts purchases to the franchisor or approved suppliers across 4 categories. What are these categories and what percentage markup or margin does the franchisor capture on required purchases?

Territory is protected but not exclusive. How does the franchisor define encroachment, and has there been any instance of multiple franchisees operating in overlapping territories?

Median gross sales are $383,862 and average is $466,858. How many units reported this data, and what is the range of sales performance across the system?

Can you provide the actual Item 19 disclosure statement so prospective franchisees can review detailed financial performance data and unit-level profitability information?

Has the franchisor initiated any terminations under the 24 specified causes? If so, what were the primary reasons and outcomes?

The system grew 29.2% over 3 years. How much of this growth is from new franchisee recruitment versus existing unit expansion, and what is the average unit volume trend?

Transfer fees are $18,750 and renewal fees are $5,000. Are these fees negotiable, and what happens if a franchisee cannot or chooses not to renew after the initial term?

The non-compete is 2 years and 25 miles. Are there circumstances where this can be modified, and how is compliance enforced?

The franchisor receives a 14% royalty plus 7% ad fund plus $650 monthly technology fee. Combined, this totals approximately 21% of revenue in many cases. How does this compare to industry standards and what is the stated breakeven point for typical franchisees?

Have there been any regulatory investigations or complaints filed with state insurance regulators regarding this franchise system or franchisor?

Can you provide historical financial statements showing your franchisor's profitability and reserves? Given the high fees, what guarantees exist if the franchisor becomes insolvent?

The zero termination rate conflicts with a stated 3.0% termination rate metric. Can you clarify how terminations are calculated and counted in your reporting?