SelectQuote Local
Bottom line
- Total investment $74K – $114K including a $55K franchise fee, 20.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 85/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 SelectQuote Local unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Overview
About
SelectQuote Local franchisees sell individual health, life, and Medicare insurance policies to consumers, operating as independent insurance agents or brokers. Revenue is primarily commission-based on policy placements, with franchisees likely managing customer acquisition, sales consultations, and ongoing policy service. The business model depends entirely on the parent company's brand reputation, sales systems, and customer lead generation—all currently compromised by litigation and operational distress.
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 · 19 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SelectQuote Local is a pre-revenue or single-unit franchise system backed by a parent company in acute financial distress facing DOJ enforcement action, securities fraud allegations, going concern doubts, and zero disclosed franchisee economics—representing extreme risk of system collapse and franchisee capital loss.
Score breakdown · what drove the 85 / 100 rating
- 01MINORParent company has five active lawsuits including three securities class actions alleging misleading statements to investors—signals potential systemic misrepresentation culture
- 02MINORDOJ qui tam action alleging improper sales and marketing practices directly threatens franchise sales model and could trigger regulatory enforcement
- 03HIGHGoing Concern note = False indicates auditors questioned parent company's ability to continue operations; franchisees depend on corporate support infrastructure
- 04MINOROnly one known franchisee unit with unknown growth trajectory suggests system is pre-revenue, unproven, or collapsing
- 05MEDNo average revenue or net income disclosed in FDD—inability or unwillingness to provide Item 19 financial performance represents maximum transparency risk
- 06MINOR20-30% royalty rate is exceptionally high (industry norm: 5-8% for insurance) while franchisee profitability data is completely absent
- 07MINORNo protected territory means franchisee competes against company-owned units, other franchisees, and direct-to-consumer operations with no geographic safeguards
- 08HIGH10-year term locks franchisee into relationship with litigation-plagued parent company through 2034 with minimal exit options
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SelectQuote Local · FDD (2026) PDF