Are you looking for the best insurance franchise to own? What an exciting journey! Let’s look at some of the characteristics of top insurance franchises to help you find the one that’s right for you.
1. The Best Insurance Franchise to Own Has a Great Business Model — How Can You Tell?
Learn about the company’s history — where and when they started and where they are now. You can judge a great deal about a company based on how long they have been in business and how successfully they have expanded. Also, interview them. Ask them specific questions about what makes them successful and how they help their new franchisees to hit the ground running.
2. Top Insurance Franchises Have Strong Financials: How Do You Look Into Their Numbers?
Great question. It is important to check out the financials of any company with whom you are considering franchising. The Franchise Disclosure Document (FDD) is a great starting place. Under the Franchise Rule enforced by the Federal Trade Commission, you must receive the FDD at least 14 days before you are asked to sign any contract or pay any money to the franchisor or an affiliate of the franchisor. Item 21 of the FDD provides the franchisor’s three most recent audited annual financial statements. This information will give you a good understanding of the franchisor’s financial health. If you don’t know how to read financial statements, consider having an accountant assist you (and ask them how you can continue to educate yourself in this area too).
3. What Is the Value of Brand Recognition in the Best Insurance Franchise to Own?
The value of brand recognition is huge. This is one of the most valuable aspects of investing in an insurance franchise instead of hanging out your own shingle. By going into business and being able to use an established and trusted name, you automatically receive the accolades that name brings. Potential customers will recognize the name, what it stands for, and what types of products and services they can expect from it.
To use a restaurant analogy, if you liked the idea of owning a fast-food restaurant, and you chose to open a McDonald’s restaurant, you would have a huge advantage over opening your own restaurant and serving your own recipes for cheeseburgers, fries, and desserts. People go to McDonald’s because they know exactly what to expect (and they love those fries!). No one who walks into a McDonald’s wonders if the food is good, the restaurant is clean, or what types of food are available. They are a known and loved quantity.
Although in a very different type of business, the best insurance franchise to own is in a similar position because it is a known quantity for your prospects. Not only that, but car insurance provides a perfect opportunity to sell a valuable and needed product because if you own a car, you are legally required to carry the minimum liability insurance for that state (plus collision insurance if the car still has a loan on it). Auto insurance is a high-retention business because your customers will need to buy your product year after year. In addition to that, as you grow those business relationships, if you sell other types of insurance, you can help them with more of their insurance needs by cross-selling to them in the future.
4. What Type of Training and Support Should You Expect From the Best Insurance Franchises?
The best insurance franchise for you to own is one that will give you training and support every step of the way. This means that they should clearly outline how they support their franchisees to you before you become a franchisee, provide you with training before you open for business, and be there to guide you not just in the first few months but throughout the life of your franchise business with them.
5. How Can I Tell If an Insurance Franchise Has a Good Reputation With Its Franchisees?
Ask them. An important part of deciding which is the best insurance franchise to own is doing your homework. This includes calling or visiting current franchisees and asking them about their experience. Get specific. Ask them things like how happy are they on a scale of 1 to 10, would they invest in the franchise again if they knew what they know now, would they recommend that franchise to a friend?
6. Do the Top 100 Insurance Franchises Have a High Franchise Success Rate?
Yes. Check with current franchisees, search online for information, including reviews from customers and both current and former franchisees, and check with the Small Business Administration. The more information you have about the reputation of the franchise and the failure rate or success rate of franchisees, the more prepared you will be to make a wise decision about investing in an insurance franchise.
The best insurance franchise to own will support its franchisees and help them succeed in their goals. They will let them know upfront what to expect from a financial and operational standpoint, and they will give them access to training and guidance to help them reach their financial goals.
7. Does the Best Insurance Franchise to Own Have a Vision for the Future?
Absolutely. A company that you want to do business with should have a clear mission and be able to communicate that to you succinctly. In addition to asking them about their mission, follow up by asking questions about the company’s history, its status, and its specific plans going forward. Where are they looking to expand, and how fast? Do they have innovative ideas in the works that will make them even more competitive in the ever-changing marketplace? Where do they want to be in ten years? What about twenty years? The best insurance franchise to own will be able to articulate these ideas to you.
Visit us at Freeway Franchise today or call us at 1-877-822-3024 to learn more about the exciting opportunities available through owning an insurance franchise!