SelectQuote LocalFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A SelectQuote Local franchise requires a total initial investment of $74K – $114K, including a $55K franchise fee and an ongoing 20.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $74K – $114K
- 46th pct Financial Ser…
- Avg gross sales
- N/A
- 30th pct Financial Ser…
- Royalty
- 20.0%
- 32nd pct Financial Ser…
- Units
- 1
- 0th pct Financial Ser…
- SBA default
- N/A
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
Started franchising in 2026. Newer systems carry more uncertainty but may offer better territories.
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.
- Verdict F (Bottom Quintile) 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
- Legal entity
- SelectQuote Local Insurance Services, LLC
- Parent company
- SelectQuote Insurance Services
- Ultimate parent
- SelectQuote, Inc.
- Incorporated in
- DE
- HQ
- 6800 West 115th Street, Suite 2511, Overland Park, Kansas 66211
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- SelectQuote Insurance Services
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Tim Danker
- Headquarters
- KS
- Founded
- 2025
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $55K | $55K | |
| Lease, Improvements, Furniture, Fixtures, Utilities | $2K | $6K | |
| Rent | $1K | $4K | |
| Signage and Media | $500 | $3K | |
| Office Equipment and Startup Supplies | $5K | $8K | |
| Insurance | $2K | $5K | |
| Licenses | $500 | $1K | |
| Professional Fees | $1K | $5K | |
| Additional Training Expenses | $500 | $7K | |
| Additional Funds - 3 months | $6K | $20K | |
| Total initial investment | $74K | $114K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $74K – $114K
- Near category avg vs category
- Liquid capital req'd
- $6K – $20K
- Better than avg vs category
- Franchise fee
- $55K – $55K
- Near category avg vs category
- Royalty
- 20.0%
- Net Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 22.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $600 |
| Transfer fee | $55K |
| Renewal fee | $28K |
| Total fee load | 22.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Financial Services averages
How SelectQuote Local Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
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 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.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
5 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | non_exclusive |
| Protected territory | No |
| Territory population | 1,250,000 |
| Online sales rightsℹ | 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 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Kansas |
| Litigation count | 5 |
View Item 3 litigation summary
5 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 242 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- SelectLocal
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SelectLocal
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SelectQuote Local · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SelectQuote Local franchise?
The total investment to open a SelectQuote Local franchise ranges from $74K – $114K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SelectQuote Local franchise owners earn?
SelectQuote Local does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is SelectQuote Local's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SelectQuote Local (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 SelectQuote Local franchise locations are there?
As of their most recent FDD filing, SelectQuote Local has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is SelectQuote Local a good franchise to buy?
FranchiseVerdict rates SelectQuote Local as a F-grade franchise with a risk score of 85 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.
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.