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Keystone Insurers Group Franchise ProfileBusiness Services Franchises > Insurance Services |
What is the Initial Investment for a Keystone Insurers Group Franchise?
To open a Keystone Insurers Group franchise, you will need to prepare for a total initial investment ranging from $27,750 to $99,200. This includes a franchise fee of $5,000. It's essential to have cash readily available within the same range to cover startup costs and ensure you can manage your operations effectively from the start.
What Are the Ongoing Fees for a Keystone Insurers Group Franchise?
Franchisees can expect to pay a royalty fee of 2% on their revenue, along with a marketing fee set at 15%. These ongoing fees contribute to the overall support and brand visibility that Keystone Insurers Group provides, helping you build and maintain a successful franchise.
What is the Average Revenue Potential for a Keystone Insurers Group Franchise?
The average annual revenue per unit for a Keystone Insurers Group franchise is approximately $128,675, with a median annual revenue of $3,142. This revenue potential indicates a viable opportunity for franchisees looking to establish a profitable business within the insurance sector.
What Are the Financial Requirements to Open a Keystone Insurers Group Franchise?
To qualify for a Keystone Insurers Group franchise, you need a net worth between $1,000,000 and $9,999,999. This requirement ensures that franchisees have the financial stability to invest in and sustain their business. Additionally, the breakeven time and investment payback period are both estimated at 24 months, highlighting a reasonable timeframe for achieving profitability.
Keystone Insurers Group Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Keystone Insurers Group Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 6 | 3 | 7 |
| Net Change YoY | -3 | 4 | |
| Franchised Units | 6 | 3 | 7 |
| Net Change YoY | -3 | 4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Keystone Insurers Group franchise offers a low to moderate initial investment range, with costs varying from $27,750 to $99,200. The initial franchise fee is set at $5,000, making it accessible for aspiring franchisees looking to enter the insurance sector. This investment includes essential startup costs, giving potential franchisees a clear understanding of their financial commitment upfront.
Ongoing Fees
Franchisees are required to pay a royalty fee of 2% on gross sales, in addition to a marketing fee of 15%. These ongoing fees contribute to the overall operational support and marketing initiatives provided by the franchisor, ensuring brand visibility and growth in the competitive insurance market.
Financial Performance
The average annual revenue per unit for Keystone Insurers Group franchises is approximately $128,675, with a median revenue of $3,142. Revenue figures range significantly, from a low of $1,000,000 to a high of $50,000,000, indicating the potential for substantial earnings depending on the franchisee's market and operational efficiency.
Breakeven and Payback
Franchisees can expect to reach their breakeven point within 24 months, which aligns with the investment payback period. This relatively quick return on investment makes the Keystone Insurers Group franchise an attractive option for entrepreneurs seeking timely profitability in their ventures.
Growth and Expansion
In recent years, the number of franchised units has shown a steady increase, with 6 units in 2020, 3 in 2021, and 7 in 2022. This growth trajectory suggests a positive reception of the franchise model in the market and highlights the potential for future expansion opportunities for new franchisees.
Corporate Structure
Keystone Insurers Group operates as a franchise system without any corporate-owned units, focusing entirely on franchised locations. This structure allows franchisees to maintain operational independence while benefiting from the support and resources provided by the franchisor, fostering a collaborative business environment.
Frequently Asked Questions
The initial investment for a Keystone Insurers Group franchise ranges from $27,750 to $99,200, which includes a franchise fee of $5,000.