Estrella Insurance
Bottom line
- Total investment $12K – $84K including a $25K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one ESTRELLA INSURANCE unit return on the cash you put in?
Unlevered ROIC · per unit
81%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 53 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ESTRELLA INSURANCE · FDD (2025) PDF