Estrella Insurance Franchise Cost, Revenue & Review 2026
- Investment
- $50K – $84K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 10 loans
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 $50K – $84K, including a $25K franchise fee and an ongoing 10.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $50K – $84K
- 30th pct Financial Ser…
- Avg gross sales
- N/A
- Royalty
- 10.0%
- 18th pct Financial Ser…
- Units
- 219
- 61st pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services median · 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 $50K – $84K including a $25K franchise fee, 10.0% ongoing royalty.
- RETURNSItem 19 covers Commercial Office franchised agencies open at least two years as of December 31, 2024 and defines Sales as the total gross premiums sold, not the agency's own revenue (the same table puts median net commissions at $435,194). The table prints high $16,658,320 / median $4,487,058 / low $2,076,416; the prose on the same page gives a different median ($4,438,136), high ($18,069,583) and low ($441,753) - the table is shown. No average or outlet count is printed (the prose says approximately 72%, about 129 outlets, exceeded $2,500,000).
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHPositive: net +14 franchised outlets in the latest year (17 opened, 0 closed) (Item 20).
- GROWTHSystem growing at 26.6% CAGR over 3 years with 219 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.
- FDD Item 1, page 6 of the 2025 FDD
- 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
- Most recent fiscal 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 29% below 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 | $20K | $44K |
| Total initial investment | $50K | $84K |
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
- $50K – $84K
- Top 40% of category 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
- 10.0%
- Tiered by sales volume · 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 | 10.0% |
| Marketing / ad fund | 7.0% |
| 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
No Item 19 revenue figure for ESTRELLA INSURANCE is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one ESTRELLA INSURANCE unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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 covers Commercial Office franchised agencies open at least two years as of December 31, 2024 and defines Sales as the total gross premiums sold, not the agency's own revenue (the same table puts median net commissions at $435,194). The table prints high $16,658,320 / median $4,487,058 / low $2,076,416; the prose on the same page gives a different median ($4,438,136), high ($18,069,583) and low ($441,753) - the table is shown. No average or outlet count is printed (the prose says approximately 72%, about 129 outlets, exceeded $2,500,000).
- Median gross sales
- $4.5M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
No system-wide average is published for this brand. The median and range below are what Item 19 supports; we show an average only where it reconciles against them.
- Item 19 type
- Commercial Office franchised agencies open at least two years as of December 31, 2024: high / median / low 2024 Sales (gross premiums sold); no average printed
- Range (low → high)
- $2.1M→$16.7MCited, not corroborated — printed on page 41 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- 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 median).
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 219 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 medians
How Estrella Insurance Compares
Category median of published Financial Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 219
- 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
Last fiscal year · Item 20 exits and transfers
- Projected new
- 0
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
198 current owners across 9 states.
- FL 175
- AZ 10
- CO 3
- TX 3
- CA 2
- NC 2
- IL 1
- MA 1
- NY 1
Counts only, from the list the franchisor prints in Item 20; 6 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 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%
- n=587 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Estrella Insurance from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 78%
- Avg interest rate
- 10.06%
- Lender concentration
- 22.2%
- Job velocity
- 1.6 per $100K
- NAICS benchmark
- 7.9%
- NAICS 524210
- Jobs supported
- 44
Top SBA lendersTop lender holds 22% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Seacoast National Bank | 2 | $703K | 0.0% |
| 2 | CDC Small Business Finance Corp. | 2 | $125K | N/A |
| 3 | BayFirst National Bank | 1 | $147K | N/A |
| 4 | MVB Bank, Inc. | 1 | $1.0M | 0.0% |
| 5 | Midwest BankCentre | 1 | $562K | N/A |
| 6 | TD Bank, National Association | 1 | $37K | N/A |
| 7 | City National Bank of Florida | 1 | $250K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 9 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
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)
Subject: the franchisor is a named party (defendant).
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)
Estrella Franchising, LLC (a Florida limited liability company); fiscal year-end December 31; audited financial statements as of December 31, 2024, 2023 and 2022 (Exhibit G; Independent Auditor's Report dated April 2, 2025 by a Coral Gables, FL CPA firm - paast.com), plus interim unaudited statements where states require.
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 76 / 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 territory |
| 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
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 $50K – $84K, 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?
Item 19 of the ESTRELLA INSURANCE FDD discloses a median of $4.5M but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns ESTRELLA INSURANCE?
ESTRELLA INSURANCE is franchised by Estrella Franchising, LLC. Its parent company is Confie Estrella, Inc.. The ultimate parent named in the FDD is Alliant Insurance Services, Inc.. Source: FDD Item 1, 2025 filing.
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?
SBA 7(a) loan charge-off data is not available for ESTRELLA INSURANCE (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many ESTRELLA INSURANCE franchise locations are there?
As of their most recent FDD filing, ESTRELLA INSURANCE has 219 total units in the United States, including 219 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 76 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.