Select Quote Local Insurance
Select Quote Local Insurance franchises sell various insurance products from multiple carriers. Known for providing comprehensive coverage options, it operates in the insurance services sector.
Select Quote Local Insurance franchise FAQ
How much does it cost to open one — the total initial investment?
This isn't specified in the excerpts. The provided FDD includes estimates for certain costs like the computer system and required software, as well as an estimate of office space rent, but it does not give a comprehensive total initial investment figure.
What is the initial franchise fee?
The Initial Franchise Fee for a single franchise is $55,000, payable in full prior to beginning the initial training program [p.12]. This fee becomes fully earned and non-refundable once you sign the franchise agreement [p.69].
What are the ongoing royalty and advertising fees?
The franchisee must make minimum royalty payments, which begin six months after the Commencement Date. These payments differ based on whether you are new to the company or purchasing a franchise after being a corporate agent with them [p.69]. Additionally, there is an obligation to contribute to advertising funds, though specific details about these fees are not provided in the excerpts [p.4].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is ten years from the Effective Date [p.66]. You have the right to enter into a successor franchise agreement upon expiration of this Agreement if you satisfy certain conditions specified in Sections 2.2.1 through 2.2.9, and there may be a successor fee involved [p.66].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot transfer your franchise business to a third party who will operate a similar business but not under the System and Proprietary Marks without a franchise agreement with SelectQuote Local [p.112]. For an approved transfer involving the sale of all or part of your book of insurance business to someone outside the System, the transferee must enter into the current form of franchise agreement and any required ancillary agreements [p.109]. This isn't specified in the excerpts for transfers within the System.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.198]. However, under Virginia Retail Franchising Act, termination without reasonable cause is unlawful unless specified grounds for default or termination constitute 'reasonable cause' as defined by law [p.203].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention that you must have adequate financial resources and capital to operate the Franchised Business [p.108], but it doesn't provide specific details on net worth or liquid capital requirements.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchise agreement explicitly states that the territory is non-exclusive [p.65], meaning SelectQuote Local can sell products in your territory and other franchisees can sell up to 25 policies per year in another territory under certain conditions [p.65]. Additionally, failure to meet minimum performance criteria could result in default and potential termination of your agreement [p.32].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training as part of the agreement, which must be completed before opening the business. Additional training may be required based on various factors such as the need for System-wide changes or performance issues [p.34]. Ongoing support includes recruiting services and licensing assistance for new agents [p.16], though specific fees are not detailed in these excerpts.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD indicates that as of the Issuance Date, there were no franchisees, but it does not provide information on the number of closed or terminated franchises [p.56].
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to disclose actual or potential financial performance information about its outlets if there is a reasonable basis for such information and it complies with certain conditions. However, the franchisor does not make any representations about future financial performance of franchises or company-owned outlets, nor do they authorize their employees or representatives to make such claims [p.53].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to specific products that you must sell; however, you may need to obtain certain items from approved suppliers designated by the franchisor [p.18]. For unapproved suppliers storing or using confidential information, you must first seek written approval before making purchases [p.80].