{
  "docId": "019dd923-622c-750b-8b9a-7b4e3a6e99ac",
  "docSlug": "79dd67a6953a",
  "documentTitle": "Goosehead Insurance, Inc. (GSHD)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-16 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 9,
  "pageCount": 19,
  "prevPage": 8,
  "nextPage": 10,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 2,
  "notes": "Includes a direct quote from a former franchise recruiter illustrating the negative reputation.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-7b4e3a6e99ac/9",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-7b4e3a6e99ac",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-7b4e3a6e99ac.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-7b4e3a6e99ac#slide-9",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.2
      },
      "kind": "callout",
      "text": "Spousal Liability. Your spouse must sign a document that makes your spouse liable for all financial obligations under the franchise agreement even though your spouse has no ownership interest in the franchise.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39314bb6-67e4-4856-9460-4c94c1a31f4e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "In our estimation, GSHD's prospects for long-term growth will be seriously hamstrung by a negative reputation earned by churning through the life's savings and homes of people who never were going to succeed.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-70f9-71ae-a66f-67171be442f0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.4
      },
      "kind": "paragraph",
      "text": "For assets other than furniture, fixtures or equipment and the rights under the lease for the Approved Location, the purchase price will be an amount equal to one and one-half (1 1/2) times the Commissions, net of Royalty Fees...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "262dd227-bf30-4da7-b369-7120342ef544",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.31
      },
      "kind": "paragraph",
      "text": "The franchise agreement contains many more one-sided provisions that allow GSHD to get a windfall when the franchisee fails. One such provision is that the GSHD has the option to purchase the franchisee’s book of business for a deep discount upon termination of the agreement:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5834a44d-d2b2-42f1-acc2-8266aa796809",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "GSHD requires that the spouse of a franchisee also sign a personal guarantee as part of the agreement. As the FDD lays out, this puts all marital assets at risk, including the home.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9dc390fb-e3e4-4c7f-ad29-aaf7599a6df2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.75
      },
      "kind": "quote",
      "text": "When I was in that specific position, you would call on different agents ... And they would say, ‘oh yeah my friend tried that and went through the process and lost literally all of his money, I hate you guys, please never call me.’",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "715e54c8-3569-4881-8595-755883c2a19f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "When I was in that specific position, you would call on different agents ... and let them know that ‘hey I’m in Goosehead Insurance, have you ever thought about the idea [of joining Goosehead]’ And they would say, ‘oh yeah my friend tried that and went through the process and lost literally all of his money, I hate you guys, please never call me.’ — Former Franchise Recruiter",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-70f9-71ae-a66f-6848d2d68b8e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "title",
      "text": "When a GSHD Franchisee Fails, They Can Lose Everything, Even Their Home",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "583b8524-8f21-48e5-875f-275c12ce1e87",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 9,
      "from": 9,
      "beatId": "e1bc2468-f5be-4b7e-8e59-9dc996c4d9bf",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document highlights contradictions between management's claims and actions, such as prioritizing personal liquidity over shareholder value.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}