Estrella Insurance Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Estrella Insurance is an independent insurance-agency franchise selling auto, home, and other personal-lines policies, with a focus on Hispanic and Latino communities. Franchisees run storefront agencies writing and servicing policies across carriers.
FranchiseVerdict summary · 2026
A ESTRELLA INSURANCE franchise requires a total initial investment of $150K – $284K, including a $25K franchise fee and an ongoing 14.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $150K – $284K
- 77th pct Financial Ser…
- Avg gross sales
- N/A
- Royalty
- 14.0%
- 25th pct Financial Ser…
- Units
- 214
- 61st pct Financial Ser…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $150K – $284K including a $25K franchise fee, 14.0% ongoing royalty.
- RETURNSItem 19 discloses no system average. The FDD reports a 2024 MEDIAN of $4,438,136 for Commercial Office franchised agencies open at least two years, with a high of $18,069,583 and a low of $441,753 (printed p.35) — a spread the median describes far better than any single number could.
- RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 26.6% CAGR over 3 years with 214 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Estrella Franchising, LLC
- Parent company
- Confie Estrella, Inc.
- Ultimate parent
- Alliant Insurance Services, Inc.
- Predecessor
- Estrella Franchising Corp.
- Prior franchisor entity
- CEO title
- President and Director
- Nicolas Estrella, Jr.
- Incorporated in
- FL
- HQ
- 1801 SW 3rd Avenue, Miami, Florida 33129
- Auditor
- Paast CPAs (Coral Gables, FL)
- Audited financials
- Franchisor revenue
- $15.8M
- vs $15.8M prior year
Overview
About
- CEO
- Nicolas Estrella, Jr.
- Headquarters
- FL
- Founded
- 2008
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 66% above the typical financial services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $5K | $15K |
| Equipment, build-out, other | $120K | $244K |
| Total initial investment | $150K | $284K |
Source: ESTRELLA INSURANCE 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $150K – $284K
- Bottom third — review vs category
- Liquid capital req'd
- $5K – $15K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 14.0%
- percentage · typical 6–8%
- Ad fund
- 7.0%
- typical 3–5%
- Total fee load
- 17.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 14.0% of gross sales |
| Marketing / ad fund | 7.0% of gross sales |
| Technology fee | $2K |
| Training fee | $500 |
| Transfer fee | $18K |
| Renewal fee | $5K |
| Total fee load | 17.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
ESTRELLA INSURANCE did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one ESTRELLA INSURANCE unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
7%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Item 19 discloses no system average. The FDD reports a 2024 MEDIAN of $4,438,136 for Commercial Office franchised agencies open at least two years, with a high of $18,069,583 and a low of $441,753 (printed p.35) — a spread the median describes far better than any single number could.
- Item 19 type
- gross sales
- Sample size
- 179
- vs category median 72 · large
- Range (low → high)
- $2.1M→$16.7M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 1 / 10
- vs category median 0 / 10 · above
Compared against 45 Financial Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 17.0% (near the Financial Services average).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System expanding at 26.6% CAGR over 3 years across 214 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services averages
How Estrella Insurance Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 214
- Opened
- 17
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +6.8%
- Net unit change over 3 years
- 3-yr CAGR
- +26.6%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $2.9M
- Median loan
- $147K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 10.1%
- avg rate to borrowers
- Franchised industry avg
- 6.0%
- brand beats franchise avg ↓
- Jobs supported
- 44
- 1.6 per loan
- Lender concentration
- 22%
- top lender's share
Borrower mix: 25% went to startups / new businesses, 75% to established operators
Franchise vs independent — in insurance agencies and brokerages, franchised businesses charge off at 6.0% vs 10.8% for independents — franchising is associated with 44% lower SBA default risk in this category.
Top lenders financing Estrella Insurance franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Estrella Insurance's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Estrella Insurance presents caution-level risk due to undisclosed profitability metrics, active litigation from a material security breach, slow unit growth, and high commission-based royalties that lack transparency on franchisee viability.
Litigation (Item 3)
Consolidated class action (Shondreika Brown and Terry Lampkin v. Estrella Franchising, LLC) filed March 2025 arising from January 2025 cybersecurity incident; settlement motion filed April 9, 2025; Estrella denies liability
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Paast CPAs (Coral Gables, FL)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 86 / 100 verdict
- 01HIGHActive class action litigation from January 2025 cybersecurity breach creates brand/customer trust risk and potential franchisor liability exposure
- 02MINORSlow unit growth (6.8% YoY on 219 units = ~15 net new franchises) suggests market saturation, franchisee retention issues, or weak recruitment momentum
- 03MEDHigh royalty rate (10–14% of commissions) combined with undisclosed profitability creates cash flow uncertainty, especially for lower-volume locations
- 04MINORCybersecurity incident in a financial services brand (insurance) is reputationally damaging and may trigger regulatory scrutiny or customer churn
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 17.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Florida |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 1 |
View Item 3 litigation summary
Consolidated class action (Shondreika Brown and Terry Lampkin v. Estrella Franchising, LLC) filed March 2025 arising from January 2025 cybersecurity incident; settlement motion filed April 9, 2025; Estrella denies liability
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 160 hrs
- Training location
- Miami, Florida
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Offered
- Item 10
- POS system
- Agency Management Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Agency Management Software
Item 20 · call current owners
Franchisee Contacts
204 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ESTRELLA INSURANCE · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ESTRELLA INSURANCE franchise?
The total investment to open a ESTRELLA INSURANCE franchise ranges from $150K – $284K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ESTRELLA INSURANCE franchise owners earn?
ESTRELLA INSURANCE does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the ESTRELLA INSURANCE FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the ESTRELLA INSURANCE FDD and qualifies whose outlets they describe.
What is ESTRELLA INSURANCE's franchise failure rate?
Based on SBA 7(a) loan data, ESTRELLA INSURANCE has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many ESTRELLA INSURANCE franchise locations are there?
As of their most recent FDD filing, ESTRELLA INSURANCE has 214 total units in the United States, including 214 franchised units and 0 company-owned units. 17 new units were opened in the latest reporting year.
Is ESTRELLA INSURANCE a good franchise to buy?
FranchiseVerdict rates ESTRELLA INSURANCE as a A-grade franchise with a verdict score of 86 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.