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How to Own an Insurance Agency 101

How to Own an Insurance Agency 101

Many entrepreneurs in the business service sector like the idea of opening an insurance agency. But establishing a solid reputation in the community takes a lot of hard work, time and effort.

In this article, we explain everything you need to know about how to launch and own an insurance agency through franchising, including the advantages and disadvantages and the steps you need to take to get started. We also talk about the best insurance agency to own.

What Are Some of the Advantages and Disadvantages You Face When You Want to Own an Insurance Agency as a Franchisee?

Going into business for yourself always brings risks and rewards — and that includes launching and running a franchise. If you’re researching how to own an insurance agency, here’s a closer look at some of the advantages and disadvantages you’ll likely face when you open and own an agency as a franchisee.


Crafting a solid business plan is one of the toughest tasks many entrepreneurs face when they’re getting started. Franchising alleviates that burden by giving you a successful blueprint to follow.

Other advantages of opening a franchise include:

  • Capitalizing on the franchisor’s brand name recognition and years of industry experience to build your reputable, new business
  • Having access to tools, technology, and marketing and advertising resources that the franchisor provides
  • Receiving ongoing training provided by the franchisor


The biggest disadvantage to owning a franchise is usually the capital required to launch. Initial franchise fees usually range between $5,000 to $25,000, and most companies also require their franchisees to have between $25,000 to $75,000 in liquid capital — the exact amount varies by franchisor.

Other disadvantages of opening a franchise as an insurer include:

  • Making sure all franchisor requirements and expectations are met
  • Ensuring all royalty fees, commissions, and any monthly costs are paid to the franchisor on time

Many franchisors terminate franchising agreements if strict requirements aren’t met. If you want to own an insurance agency, you need to keep close tabs on all of these details.

What Steps Do You Need to Take to Own an Insurance Agency as a Franchisee?

If learning how to own an insurance agency is something you’re interested in, knowing where to start may seem a bit overwhelming. Here are a few steps that can help you get started:

  1. Become a licensed agent in the state where you plan to operate your franchise. This mandatory step is what allows you to sell auto and property coverage. After completing a specific number of classroom hours, paying the required fees (which vary by state), and passing an exam, you’ll receive your license and walk away with the knowledge you need on market management and underwriting.
  2. Partner with a reputable company that has franchising opportunities. Assuming you’ve saved enough capital to launch and fund a franchise, the next step is to partner with a reputable company that offers franchising opportunities. The company you choose will likely have staff that can guide you on specific state filing requirements, application guidelines, costs and associated fees.
  3. Complete the required paperwork, pay the associated costs, and meet any necessary conditions. Once you complete this, you’ll likely receive a business model from the franchisor along with other materials to help guide your launch, from picking a great location to choosing the coverage options that best suit your community.
  4. Launch your new venture. After completing the paperwork and obtaining any required business permits for your new location, you’ll be ready to officially open your franchise.

What Is the Best Insurance Agency to Own?

If you’re looking to become an insurer by opening a franchise, you have several options available. Five of the best companies to launch a franchise with are:

  • Allstate
  • Farmer’s
  • Freeway
  • Brightway
  • Estrella

Ultimately, the best insurance agency to own is the one that aligns with your goals and vision as an entrepreneur. It should also have startup fees and requirements you can easily meet.

Why Choose to Own a Freeway Insurance Agency?

If you decide you want to own a Freeway Insurance agency in your community, it will be part of one of the largest, privately-held distribution companies in this multi-billion-dollar sector of the U.S. market.

As a Freeway franchisee, you’ll own an insurance agency that’s built on a strong, national brand name, with more than three decades of experience delivering quality coverage and ancillary products to customers across the country. You’ll also have access to all of the tools, technology and resources you need to make your office a go-to resource in your community.

Following our established franchise business model, we walk you through the entire process of launching your Freeway franchise from start to finish, ensuring your success through ongoing, comprehensive training.

Our initial franchise fee is around $15,000, with additional investment costs ranging between $45,000 to $85,000. We have funding options available with FranFund that can help you get started.

Once your office is up and running, we charge a 15% royalty fee on total sales commissions and ancillary revenue, as well as a technology fee of $650 per month for a one-person location. Also, Freeway franchisees must contribute 2% of sales commissions and ancillary revenue to our brand-marketing fund.

What Are Some Resources for Entrepreneurs Looking to Own an Insurance Agency?

If you’re looking for information on how to own an agency, the following resources can help:

  • The Independent Insurance Agents & Brokers of America (IIABA)
  • The National Association of Professional Insurance Agents (PIA)
  • Insurance Business magazine
  • The U.S. Small Business Administration (SBA)

Launch and Own a Freeway Insurance Agency Today!

If you’re looking to launch a new business venture, a Freeway franchise is the best insurance agency to own. Get started online or give us a call at (877) 822-3024, and we will walk you through the process from start to finish, ensuring your new venture is a success.


Ready to Open Your Own Freeway Insurance Office?

If you find the Freeway Insurance brand compelling and are looking for a flexible, well-supported business in a rewarding niche of the dynamic insurance industry, contact us.