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- 2022 Franchise 500 Rank
#324 Ranked #180 last year
- Initial investment
$12K - $84K
- Units as of 2021
175 45.8% over 3 years
Here’s what you need to know if you’re interested in opening a Estrella Insurance franchise.
Founded by Nicolas Estrella in 1980 after he enjoyed a successful career in the life and health insurance sector, Estrella Insurance started franchising in 2008. The company specializes in home, auto, and commercial insurance services that typically cover businesses, vehicles, and boats, and has expanded its reach with over 150 franchises across the U.S.
Estrella Insurance is one of the cheapest franchises to own. You'll benefit from more than thirty years of professional customer service that Estrella Insurance has procured in its existence.
Why You May Want to Start an Estrella Insurance Franchise
Estrella Insurance has built solid relationships with significant insurance providers so that your business has the best possible chance of succeeding. With trainers and support staff making agency visits, Estrella Insurance offers your location national marketing over the internet, radio, TV, and other outdoor advertising forms.
Even over unaffiliated insurance competitors, the Estrella brand name stands out while giving your business confidence against other franchised chains. You can even open and operate multi-unit franchises with Estrella Insurance, and the franchisor offers support and options for financial assistance to make it happen. The franchisor represents over 150 insurance providers, giving you the ability to insure more at affordable premiums.
Furthermore, Estrella Insurance offers incentives for veterans in the form of a discount on the franchise fee.
What Might Make Estrella Insurance a Good Choice?
As you make your decision regarding opening an Estrella Insurance location, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
A site location team works with you to identify the perfect site for your Estrella Insurance franchise. Their recommendations are based on population, traffic, and demographics, and if need be, they'll also negotiate the best lease terms on your behalf.
And while they guarantee their customers the lowest rates every time, Estrella Insurance looks for franchisees who focus on providing quality service to their customers. This might be a good fit for you if you have expertise and experience in insurance already.
How to Open Your Own Estrella Insurance Franchise
In order to become a franchisee with the Estrella Insurance Hialeah team, you should make sure you’re financially ready for an initial investment and potential set-up fees. These will include royalty percentages and fees and renewal fees. Estrella Insurance offers a ten-year term of agreement that can be renewed if you and the company are both satisfied.
You might also find it easier to secure financing due to the backing of a reputable franchisor. No need for franchise insurance with this insurance franchise; franchised companies like yours get continual support as well as multiple weeks of on-the-job training, assisting your endeavors in every way from opening day.
Estrella typically assists franchisees with location advertising and outfitting new or converted insurance agencies while you're attending training. Before long, you'll be ready for your outlet's grand opening ceremony.
About Estrella Insurance
- Franchising Since
- 2008 (14 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Missouri, Mississippi, Montana, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, West Virginia, Wyoming
- # of Units
- 175 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Estrella Insurance franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $10,000 - $25,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $12,250 - $84,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $50,000 - $100,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
- 10-14% of commissions
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
- 7% of commissions
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Estrella Insurance offers in-house financing to cover the following: franchise fee
- Third Party Financing
- Estrella Insurance has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 240 hours
- Classroom Training
- 80 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Estrella Insurance landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Estrella Insurance ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Estrella Insurance.
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