About Frontier Adjusters Franchise
Frontier Adjusters is a claims adjusting franchise that has been in operation since 1959, making it one of the longest running franchise concepts in the insurance services industry.
Now operating under Davies US Inc., the brand provides independent claims adjusting, inspections, appraisals, estimates, third party claims administration, and risk management services.
The initial franchise fee is $15,000.
Frontier Adjusters Franchise Cost & Fees
Minimum Investment
$21K
Average Investment
$26K
Maximum Investment
$30K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 | One-time payment upon signing |
| Royalty Fee | 15% of gross receipts from billings for services performed of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of gross receipts from billings for services performed (currently not being charged) | National brand fund |
| Total Investment Range | $21,460 – $30,410 | Includes build-out, inventory, working capital |
The investment range of $21K–$30K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (15% of gross receipts from billings for services performed) and marketing fee (Up to 1% of gross receipts from billings for services performed (currently not being charged)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 |
| Errors & Omissions Insurance | $760 | $760 |
| Additional Insurance Coverage (Note 1) | $500 | $1,000 |
| Equipment (Note 2) | $1,000 | $3,000 |
| Opening Inventory | $150 | $150 |
| Initial Advertising Fee | $0 | $0 |
| Training (Note 3) | $0 | $0 |
| Real Estate and Improvements (Note 4) | $0 | $1,500 |
| Utility and Lease Security Deposits | $50 | $1,500 |
| Telephone and Fax Listings | $1,000 | $2,000 |
| Furniture and Fixtures | $0 | $1,000 |
| Business License and Workers Compensation Insurance Deposit | $0 | $1,500 |
| Additional Funds (Note 5) | $3,000 | $3,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $1,000 |
| Renewal Fee | null |
| Technology Fee | Up to 1% of gross receipts from billings for services performed (currently not being charged) |
| Audit Fee | null |
| Errors & Omissions Insurance | Premiums are allocated to each advertised location (average $575 in fiscal year ended June 30, 2020) |
| Fee for Improper Billings | 30% of any billings not invoiced on forms furnished or provided by us, or on forms on which the payor is not instructed to make payment to us. |
| Liquidated Damages | $1-$250 per violation |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | No mandatory training program, only FACTS system training is provided. |
| Classroom Training | null |
| On-the-Job Training | null |
| Training Location | null |
| Additional Training | Franchisor may offer training programs or materials as a convenience to franchisees, but these are not mandatory. Franchisees are expected to maintain continuing education and training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | null |
| Description | The Franchise Agreements are for an advertised location, which is solely a geographic label for identification. Franchisees may market and conduct business anywhere, complying with proper use of service marks and advertised location designation. Franchisor reserves the right to enter into franchise agreements with other franchisees for any and all services and advertised locations other than the franchisee's specific advertised location. Franchisor reserves National Accounts, but may refer business to franchisees. Franchisees may choose to participate in National Account arrangements. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Five years |
| Renewal Term | one additional term of five (5) years |
| Renewal Fee | null |
| Renewal Conditions | Franchisee must be in compliance with the existing agreement, not in default, and Franchisor must deem at least one 20% owner to have required capabilities. Franchisee must give 90 days prior written notice, sign a Waiver and Release of Claims Agreement, and execute a new agreement in the then-current form (which may include materially different terms and conditions). |
| Transfer Fee | $1,000 |
| Transfer Conditions | Franchisor's approval is required and cannot be unreasonably withheld. Conditions include: all obligations discharged or assumed by transferee; transferee completes required training; all sums due to Franchisor or other franchisees paid; transferee and owners execute new franchise agreement and ancillary agreements; transfer fee paid; adequate assurance of future performance; franchisee and owners execute termination agreement; Franchisor approves material terms of transfer; franchisee and owners reaffirm non-compete covenant; Franchisor has not exercised right of first refusal. |
| Termination for Cause | Franchisor may terminate for cause with 30 days to cure for curable defaults (e.g., breach of agreement). Immediate termination without cure opportunity for non-curable defaults (e.g., voluntary abandonment, conviction of offense related to franchise, bankruptcy/insolvency, materially impairing goodwill, failure to comply with arbitration, operating other business from premises without consent, failure to maintain licenses, failure to maintain telephone service, failure to respond to franchisor communications within 5 days, billing clients on non-franchisor forms, or failure to meet minimum gross billing requirements). |
| Non-Compete Period | two (2) years after the termination of the Franchise |
| Non-Compete Details | During the term, franchisee shall not directly or indirectly participate in or accept employment by, or own an interest in, any competitive business providing Franchised Services. After termination, for two years, franchisee shall not compete within the Advertised Location and for a distance of 100 miles outside of the Advertised Location. This includes owning an interest in or acting as an employee/independent contractor for a competitive business. Franchisee also cannot solicit customers for two years after termination. Michigan and North Dakota state addenda may affect enforceability. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You are obligated to devote sufficient time and effort to ensure the success of the business at the advertised location, and shall not permit any other venture to materially interfere. Day-to-day involvement typically includes personally handling or supervising customer assignments, preparing/reviewing reports and invoices, marketing services, and working with Franchisor's corporate staff. At least one individual who owns 20% or more of the entity must be an experienced and licensed adjuster and actively involved in day-to-day operations. |
| Required Suppliers | Franchisees are required to participate in group insurance policies relating to errors and omissions insurance coverage. Franchisor may require the use of a particular, preferred telephone system vendor (e.g. FreedomVoice Phone System). Some customers require specific estimating software (e.g. Xactimate) which the franchisor may require franchisees to purchase. Franchisor reserves the right to require specifications and mandatory suppliers for certain goods and services in the future. |
| Supply Restrictions | Franchisor has no current required specifications, or mandatory suppliers for goods, services or real estate relating to your franchise business, with the exception of telephone service vendors and estimating software vendors. However, franchisor reserves the right to require specifications and mandatory suppliers for certain goods and services in the future. All advertising and promotional material, signs and other items designated by the franchisor must bear Service Marks in the specified form, color, location, and manner. |
| Franchisor Revenue from Suppliers | Marathon Insurance Brokers, Ltd., an affiliate of the prior owner, received a commission from the insurer ranging from 5% to 10% of the premium paid for Errors & Omissions coverage. The commission received for the most recent policy year was $48,500. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor self-finances a portion of the initial franchise fee ($10,000 deferred amount payable in weekly installments of $50 over 200 weeks, non-interest bearing). Franchisor may offer a cash advance program to select franchisees (non-interest-bearing advances on customer billings, subject to limits). Franchisor may also provide loans and other financial assistance to existing franchisees acquiring other adjusting firms (terms vary, may require promissory note and secured position). Franchisor does not guarantee any notes, leases, or other obligations to third parties. |
Frontier Adjusters Franchise Earnings — Item 19
Average Revenue
$251K
Median Revenue
$155K
Revenue Range
$46K – $647K
Sample Size
110 units
Past financial performance does not guarantee future results. Individual results will vary.
Frontier Adjusters Litigation & Risk Flags
Clean Litigation RecordFrontier Adjusters has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Frontier Adjusters System Growth
Total Units
611
Franchised
611
Company-Owned
0
Frontier Adjusters currently operates 611 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 13 | 30 | 621 |
| 2020 | 26 | 33 | 614 |
| 2021 | 6 | 9 | 611 |
Transfers: 65 | Closures: 9
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$4.3M
Net Income
$1.3M
Total Assets
$7.9M
Audited by C&P Advisors, LLC for year ending June 30.
Frontier Adjusters Franchise — FAQ
The total investment to open a Frontier Adjusters franchise ranges from $21,460 to $30,410, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Frontier Adjusters charges a royalty fee of 15% of gross receipts from billings for services performed of gross sales, plus a Up to 1% of gross receipts from billings for services performed (currently not being charged) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Frontier Adjusters Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Frontier Adjusters to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Frontier Adjusters franchise owners report average revenue of $251K and median revenue of $155K. This is based on a sample of 110 units. Past performance does not guarantee future results.
Frontier Adjusters has been franchising since 1959. The FDD shows an investment range of $21,460-$30,410, a 15% of gross receipts from billings for services performed royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $15,000 and the total investment ranges from $21,460 to $30,410 depending on location size and market. A minimum of $3,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Frontier Adjusters and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Frontier Adjusters or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com