How much can owners of an insurance franchise (Allstate, State Farm) make?
It’s really difficult to say, since you’re asking a loaded question. One needs to consider the target market and location you’re positioning your insurance franchise. Everyone needs insurance, so your potential audience is practically unlimited since that’s any human being walking around breathing. Sky’s the limit for an owner of an insurance franchise, unless the franchise agreement has caps. The great thing about an insurance franchise is that your only overhead is pretty much people. You do not have a tangible product; therefore, you have higher margins. The only caveat with an insurance franchise or any other franchise for that matter is that the franchiser usually gives them the option to buy back a franchise from a franchisee at a future date. So if the franchisee is making too much money, the franchise will buy it back since it’s very profitable. McDonald’s is infamous for buying back franchises from its owners. Agree or disagree, but that’s why McDonald’s is one of the most suc
