New Idea! Brokerage Franchise Model

[dahonored1]

Hello everyone, I'm currently working with a independent agent that has a few direct appointments and he is trying to get me to be a "franchise" of his agency name. They are trying to copy Allstates agency model where Allstate does the advertising and brand exposure and you as the agent and franchisee work under their title. Except with them it's the brokerage brand awareness, not the actual insurance company. The split is 80:20. What do you guys think of this proposal? Should I do it? Or should I just join smart choice and do my own thing?

 

[Glen Shelton]

Hello everyone, I'm currently working with a independent agent that has a few direct appointments and he is trying to get me to be a "franchise" of his agency name. They are trying to copy Allstates agency model where Allstate does the advertising and brand exposure and you as the agent and franchisee work under their title. Except with them it's the brokerage brand awareness, not the actual insurance company. The split is 80:20. What do you guys think of this proposal? Should I do it? Or should I just join smart choice and do my own thing?

What is their plan of attack with advertising/marketing?

Do they actually have any brand awareness currently?

You need to figure out if you are better off doing your own marketing methods or paying them 20% of your commission.

If I had to bet, you are probably better off on your own as an independent broker. I don't know the details here though so I could be wrong.

 

[FL P&C Broker]

Nothing new about this. We have several operations like this in Florida. Buy ins range form $25k to $60k

 

[dahonored1]

Nothing new about this. We have several operations like this in Florida. Buy ins range form $25k to $60k

any success using this model?

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What is their plan of attack with advertising/marketing? Do they actually have any brand awareness currently? You need to figure out if you are better off doing your own marketing methods or paying them 20% of your commission. If I had to bet, you are probably better off on your own as an independent broker. I don't know the details here though so I could be wrong.

they have a few offices in the city, but they want to have more so it will look like state farm branches.

 

[indienoise]

There are several groups that operate like this. Some are actual franchises, then there are some like pgi who let you do your own thing but you have their logo above your door. I would still say smart choice is closer to a franchise than groups like pgi. There are many ways to go about this, each a little bit different from on the next. Be crystal clear about the expectations of the group you align with, as well as your own expectations and priorities. Be extremely cautious and thorough, as many of these partnerships are not easily severed.

 

[dahonored1]

There are several groups that operate like this. Some are actual franchises, then there are some like pgi who let you do your own thing but you have their logo above your door. I would still say smart choice is closer to a franchise than groups like pgi. There are many ways to go about this, each a little bit different from on the next. Be crystal clear about the expectations of the group you align with, as well as your own expectations and priorities. Be extremely cautious and thorough, as many of these partnerships are not easily severed.

Isn't it a violation to put a sign up as PGI but your dba says otherwise?

 

[indienoise]

Isn't it a violation to put a sign up as PGI but your dba says otherwise?

It's the same concept as a captive agency's sign. Has the logo then "the smith agency" or whatever.

 

[cgreene]

PGI does not have a logo on any offices there name just shows on dec pages if you aren't directly appointed.

 

[indienoise]

The one in my town has the red and blue square on the building. Affiliated agencies seemed to follow that name formula, so I simply made an assumption.

It's a relatively unimportant detail anyway, especially since the average joe has no awareness of pgi. Just using as an example. I doubt that a sigh was the make or break for a single agency contract, no matter the guidelines or lack thereof. More importantly, it seemed to me from my conversation with Shawn that their focus was setting you up to do business however you feel you could succeed, not try to fit you to a mold, as a franchise would presumably do.

 

[cgreene]

Yes it is I actually have contracts outside of them and talk to them very little now except for training.