Estrella InsuranceFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Per the 2025 FDD, average unit revenue was $9.3M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $50K – $84K
- 21st pct Financial Ser…
- Avg gross sales
- $9.3M
- 28th pct Financial Ser…
- Royalty
- 10.0%
- 9th pct Financial Ser…
- Units
- 219
- 49th pct Financial Ser…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 138.2x in gross revenue, well above the typical 1.5-2.5x range.
Only 0.0% of 10 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 214 to 185 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $50K – $84K including a $25K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $9.3M/year (median $4.4M).
- Verdict A (Top Quintile) with a risk score of 35/100. SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 26.6% CAGR over 3 years with 219 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ESTRELLA FRANCHISING, LLC
- Parent company
- Confie Estrella, Inc.
- Incorporated in
- FL
- HQ
- 1801 SW 3rd Avenue, Miami, Florida 33129
- Auditor
- PAAST, P.L.
- Audited financials
- Franchisor revenue
- $13.5M
- vs $15.8M prior year
Overview
About
Franchisees operate independent insurance agencies under the Estrella brand, selling auto, home, and other insurance products primarily to Hispanic/Latino communities. Day-to-day operations include client acquisition, policy sales, renewals, customer service, and regulatory compliance. Revenue derives from insurance commissions, which are shared with Franchisor at 10–14% of net commissions earned.
- CEO
- Nicolas Estrella, Jr.
- Headquarters
- FL
- Founded
- 2008
- FDD year
- 2025
- States available
- 9
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $0 | $15K |
| Equipment, build-out, other | $25K | $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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$555K
6.0% margin
Unlevered ROIC
746%
EBITDA / total invested capital
Payback
2 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $50K – $84K
- Better than avg vs category
- Liquid capital req'd
- $0 – $15K
- Better than avg vs category
- Franchise fee
- $10K – $25K
- Better than avg vs category
- Royalty
- 10.0%
- 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 | 10.0% of gross sales |
| Marketing / ad fund | 7.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $18K |
| Renewal fee | $5K |
| Total fee load | 17.0% of rev |
At 17.0% total fee load, roughly $1573K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $9.3M
- Per unit, per year
- Median gross sales
- $4.4M
- Item 19 type
- Median Sales Volume
- Sample size
- 179 units
- vs category median 97
- Range (low → high)
- $442K→$18.1M
- Cohort dispersion (min → max)
- Transparency
- 1 / 5
- vs category median 0 / 5 · above
Compared against 58 Financial Services brands
Revenue is 138.2x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Financial Services averages
How Estrella Insurance Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 219
- Opened
- 17
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +6.8%
- Net unit change last year
- 3-yr CAGR
- +26.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 8
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · PAAST, P.L.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 35 / 100 rating
- 01HIGHActive class action litigation from January 2025 cybersecurity breach creates brand/customer trust risk and potential franchisor liability exposure
- 02MEDNo disclosed average revenue or net income (Item 19) prevents realistic ROI assessment; unable to validate the $12,250–$84,000 investment range generates adequate returns
- 03MINORSlow unit growth (6.8% YoY on 219 units = ~15 net new franchises) suggests market saturation, franchisee retention issues, or weak recruitment momentum
- 04MEDHigh royalty rate (10–14% of commissions) combined with undisclosed profitability creates cash flow uncertainty, especially for lower-volume locations
- 05MINORCybersecurity 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 160 hrs
- POS system
- Agency Management Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Agency Management Software
Item 20 · call current owners
Franchisee Contacts
11 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 $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?
According to Item 19 of the ESTRELLA INSURANCE FDD, the average gross sales per unit is $9.3M. The median is $4.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 219 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 risk score of 35 out of 100, 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.
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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.