Fiesta Insurance Franchise Cost & 2022 FDD Data
70/100
Strongest tier
70 this brand53 Financial Services medianlikely 60–80: narrower with more SBA loans and a newer filing (moderate confidence)
Higher is better · an editorial assessment, not investment advice
#539 of 3,068 graded brands
Why an A: Helped by unit growth, scale, legal record and transparency. Held back by financial health. See all six factors
- Total investment
- $72K – $157K
- Avg gross sales
- $322K
- “All franchised locations open 12+ months (FY2022)”, 232 outlets; not profit
- SBA charge-off
- 13 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
This data is from a 2022 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.
FranchiseVerdict summary · 2022 FDD
Per the 2022 FDD, a Fiesta Insurance franchise requires a total initial investment of $72K – $157K, including a $15K franchise fee. Once open, the ongoing royalty is 20.0%. Per the 2022 FDD, average gross sales were $322K (Item 19 group “All franchised locations open 12+ months (FY2022)”, 232 outlets; gross sales, not profit). Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2022 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: high (issued more than two years ago)
Evidence for the headline figures: 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
Quick verdict · vs Financial Services median
Top edge: green = better than the Financial Services median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $322K/year (outlet median $223K; Item 19 group “All franchised locations open 12+ months (FY2022)”, 232 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 1 (15 opened, 14 closed).
AT STAKEOne unit at the Item 7 midpoint: $15K a year in payments on assumed SBA 7(a)-style terms.You put in about $23K of your own cash and personally guarantee a $92K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
- An owner must run the business personally (Item 15, owner participation). Ask whether a trained manager can ever stand in.
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no lawsuit naming the franchisor in Item 3, no jury-trial waiver and the full filing on file, and an Item 19 average from 232 units. Not on file here, so ask: SBA charge-off rate against the category median.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 22% above the Financial Services median ($94K).
Source: FDD 2022 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Fiesta Insurance Franchise Corporation (Item 1: 3755 Breakthrough Way, Suite #205, Las Vegas, Nevada 89135) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $15K | $15K | |
| Travel & Living Expenses While Training | $1.7K | $2K | |
| Real Estate & Improvements | $11.2K | $30K | |
| Furniture & Equipment | $4.08K | $6.75K | |
| Computer Equipment | $4.67K | $7K | |
| Signs | $4.5K | $8K | |
| Insurance Coverage | $500 | $3K | |
| Miscellaneous Opening Costs | $1K | $2K | |
| Marketing Package Fee | $3.5K | $5K | |
| Policy Management Software Licensing Fee/Licensing Fee; Insurance Rating Software Licensing Fee | $900 | $3K | |
| Additional Funds – 3 months | $25K | $75K | |
| Total initial investment | $72K | $157K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Technology feePlatform Access Fund contribution: currently $200/month, not to exceed $500/month | $200/month |
| Transfer fee | $0 |
| Renewal fee | $15,000 |
What do units actually make?
Average gross sales are 23% above the Financial Services median ($262K).
Source: FDD 2022 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Fiesta Insurance unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $322K (FDD p.56), and the royalty and ad fund take about $64K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $15K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $114K Item 7 midpoint is a $92K loan, paid over 10 years at 10.5%: $15K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Fiesta Insurance's past SBA 7(a) loans averaged 7.8% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $23K Assumption (the part the loan does not cover of the $114K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $92K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Fiesta Insurance unit leave you each year after the loan payment?
Item 19: $321,581 average for 232 outlets (All franchised locations open 12+ months (FY2022)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $72K to $157K
Item 7's $25K to $75K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies ad fund rate, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $92K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies ad fund rate, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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: 2022 FDD · filed by Fiesta Insurance Franchise Corporation
Financial performance
- Range (low → high)
- $4K→$1.6MSource: 2022 FDD, page 56
- Cohort dispersion (min → max)
Percentile ranks within Financial Services
Each rank is among the Financial Services brands that report that figure (the count is under each bar).
vs Financial Services medians
How Fiesta 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.
Who are you contracting with?
Fiesta Insurance Franchise Corporation, owned by Insurvia, Inc. (formerly Fiesta Insurance Holdings, Inc.).
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Fiesta Insurance Franchise Corporation
- Parent company
- Insurvia, Inc. (formerly Fiesta Insurance Holdings, Inc.)
- FDD Item 1, page 6 of the 2022 FDD
- Ultimate parent
- Insurvia, LLC (formerly FIFC Holdings, LLC)
- FDD Item 1, page 6 of the 2022 FDD
- CEO title
- Chief Executive Officer
- Danish Charanya
- Incorporated in
- DE
- HQ
- 3755 Breakthrough Way, Suite #205, Las Vegas, Nevada 89135
- Auditor
- WithumSmith+Brown, PC
- Audited financials
- Franchisor revenue
- $46.7M
- latest fiscal year in the 2022 FDD; $45.4M the year before
Overview
About
Insurance agency (personal and commercial auto, homeowners, specialty lines) combined with retail tax return preparation and electronic tax filing services.
- CEO
- Danish Charanya
- Franchised outlets in
- 11 states and territories
- Item 20 Table 3, at year end
- States and territories listed
- 11
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+32 franchised outlets over the two years to 2022 (216 to 248, +14.8% in total, +7.2% a year compounded).
Source: FDD 2022 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 19
- 1 for every 13 open outlets · Item 20 Table 5
- Projected new
- 40
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 216 in 2019 to 248 in 2021
Axis does not start at zero.
Source and method
Item 20 (outlet counts) Table 3 · franchised outlets at year end
Where current outlets are
Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 11 statesNo current outlet
248 franchised outlets at year end in 11 states (Item 20 Table 3).
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 13
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $5.4M
- Average loan
- $417K
- loan volume divided by loans
- Charge-off rate
- 13 loans: too few to judge
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 13 loans: too few to judge
- Recent-loan charge-off
- 13 loans: too few to judge
- Lenders
- 7
- Average interest rate
- 7.8%
- Jobs reported
- 80
- Lender concentration
- 31%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Top lenders financing Fiesta Insurance franchisees Each lender’s rate counts only its own resolved loans; a 0.0% often means few of that lender’s loans have been resolved, not that none will fail. A lender with fewer than 10 resolved loans reads “Too few”.
Showing 3 of 7 lenders. The full SBA lending report below lists the top 10 by loan count, with states and the yearly trend.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What are the risks?
Main risk in the grade: financial health. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 70/100 (category median 53); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health Weighs on it, weakest dimensionAudited financials; no going-concern doubt; franchisor reported a net loss
- Unit economics NeutralAvg gross sales $322K on a $114K investment midpoint, 2.8x (gross sales, not profit)
- Unit growth Helps+32 franchised outlets over the two years to 2022 (216 to 248, +14.8% in total, +7.2% a year compounded); turnover 5.6%
- Scale Helps248 franchised units; franchising since 2007
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-5 points)Filing age: the newest filing on file is from 2022, and older filings may no longer describe the system, so it took 5 points off.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · WithumSmith+Brown, PC
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Statements of Operations report Gross Revenue of $46,739,199 (FY ended 4/30/2022) comprised of gross commissions, tax preparation fees, ancillary fees, franchise fees, and marketing fees. After deducting commissions/fees paid out and marketing fees paid out, Net Revenue was $12,658,959. Other Income includes management fees of $148,400. FY2022 reflects a net loss of $1,059,716. FY2021 audited by Martini Akpovi Partners, LLP (joined WithumSmith+Brown 2/1/2022).
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | Yes |
| Territory population | 20,000 |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | Owner must run it |
| Non-compete (years) | 2 years |
| Right of first refusal | Yes |
| RoFR response window | 20 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Clark County, Nevada (state or federal court) |
| Jury trial waiver | No |
| Governing law | NV |
Items 10 (financing), 11 (training and support)
Training and operations
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Site selection
- Franchisee selects, franchisor must approve within 10 business days
- Franchisor financing
- Offered
- Item 10
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
54 current outlets listed
Each record has a phone number and state. 1 of 54 also name the franchisee. No cities. 54 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 54 of the 248 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Fiesta Insurance franchise?
Per the 2022 FDD, the total investment to open a Fiesta Insurance franchise ranges from $72K to $157K, with an initial franchise fee of $15K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Fiesta Insurance franchise owners earn?
According to Item 19 of the Fiesta Insurance FDD, average gross sales were $322K (Item 19 group “All franchised locations open 12+ months (FY2022)”, 232 outlets; gross sales, not profit). The median is $223K. What an owner keeps depends on location, operating costs and management.
Who owns Fiesta Insurance?
Fiesta Insurance is franchised by Fiesta Insurance Franchise Corporation. Its parent company is Insurvia, Inc. (formerly Fiesta Insurance Holdings, Inc.). The ultimate parent named in the FDD is Insurvia, LLC (formerly FIFC Holdings, LLC). Source: FDD Item 1, 2022 filing.
What is Item 19 in the Fiesta 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 Fiesta Insurance FDD and qualifies whose outlets they describe.
What is Fiesta Insurance's franchise failure rate?
There is no published franchise failure rate, and Fiesta Insurance has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Fiesta Insurance franchise locations are there?
Per the 2022 FDD, Fiesta Insurance has 248 franchised units and 0 company-owned (248 in all). In the latest year, the number of franchised outlets grew by 1 (15 opened, 14 closed).
Is Fiesta Insurance a good franchise to buy?
FranchiseVerdict gives Fiesta Insurance an A Verdict grade (Strongest tier) with a verdict score of 70 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+32 franchised outlets over the two years to 2022: 216 to 248, +14.8% in total, +7.2% a year compounded), scale, legal record and transparency. Held back by financial health (audited financials). The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Financial Services franchises
Similar investment first, then by grade
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.