Freeway Insurance(R) Franchise
Cost, fees, owner earnings, closure rate and litigation for a Freeway Insurance(R) franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Freeway Insurance(R) discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Discloses affiliate-owned location revenue (2025). Excludes 24 newer locations, California locations (larger/longer-established), Louisiana/Alabama (premium financing). Cherry-picks largest, most similar outlets.
What a Freeway Insurance(R) franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $10,000 | Item 5 — paid up front, before you open |
| Royalty | 14% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 7% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 21% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $34,950 – $84,000 | Item 7 — franchisor's own low/high estimate |
Initial fee deferred until pre-opening obligations met (CA/MD/MN/ND/WA). 14% royalty on total revenue; 7% brand fund; technology fees up to $650/month.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Freeway Insurance(R) system size and owner turnover
| Total outlets | 696 |
| Ceased operations | 10 |
| Terminated by franchisor | 3 |
| Transferred to new owners | 0 |
| Closure rate | 1.4% of outlets |
10 closures in 2025; 3 franchisee terminations; low franchisee count (47/696=6.8%).
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Freeway Insurance(R) worth it? — how it compares to 436 similar franchises
| Ongoing fees | 21% of sales | steeper than 97% of other franchises franchises |
| Startup cost | from $34,950 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 1.4% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Freeway Insurance(R)
The franchisor's framing: Discloses affiliate-owned location revenue (2025). Excludes 24 newer locations, California… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Freeway Insurance(R) franchise — frequently asked
- How much does a Freeway Insurance(R) franchise cost?
- The FDD lists a total initial investment of about $34,950–$84,000, including a $10,000 initial franchise fee.
- How much do Freeway Insurance(R) franchise owners make?
- Discloses affiliate-owned location revenue (2025). Excludes 24 newer locations, California locations (larger/longer-established), Louisiana/Alabama (premium financing). Cherry-picks largest, most similar outlets. We grade this disclosure C for honesty.
- What are the Freeway Insurance(R) franchise fees?
- Freeway Insurance(R)'s FDD discloses a $10,000 initial franchise fee, a 14% royalty on gross sales, a 7% advertising-fund contribution, for roughly 21% of gross sales in recurring fees before rent, labor, or debt service. Initial fee deferred until pre-opening obligations met (CA/MD/MN/ND/WA). 14% royalty on total revenue; 7% brand fund; technology fees up to $650/month.
- What is the Freeway Insurance(R) franchise profit margin?
- Freeway Insurance(R) does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Discloses affiliate-owned location revenue (2025). Excludes 24 newer locations, California locations (larger/longer-established), Louisiana/Alabama (premium financing). Cherry-picks largest, most similar outlets. Recurring fees alone take about 21% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Freeway Insurance(R) franchise failure rate?
- 10 closures in 2025; 3 franchisee terminations; low franchisee count (47/696=6.8%).
- How many Freeway Insurance(R) locations are there?
- Freeway Insurance(R)'s FDD reports 696 total outlets, with 10 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Freeway Insurance(R) have complaints or lawsuits?
- Freeway Insurance(R) discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Freeway Insurance(R) franchise worth it?
- It depends on the numbers, not the pitch. Freeway Insurance(R) scores C on disclosure honesty, carries about 21% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Freeway Insurance(R) to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Freeway Insurance(R) or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.