Fiesta Auto Insurance and Tax Service
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In 2006 Fiesta Auto Insurance and Tax Services began its franchise operations and since then has given customers access to many top insurance carriers—at the very best prices available. Fiesta’s team of professionals offer insurance coverage for auto, home, commercial, rental property, boat, motorcycle and anything else that might need to be insured. All Fiesta Auto Insurance offices also offer income tax preparation services. The Fiesta team accurately determines tax liability, identifies all deductions, and works to get customers the biggest refunds or least tax liability.
Fiesta Auto Insurance offers franchisees an attractive opportunity in a stable recession proof industry with consistent growth every year. Both insurance, which people are often legally required to obtain and taxes are considered necessary services. Regardless of whether the economy is enjoying good times or not, these two essential services are a successful combination.
For 2011, Fiesta Auto Insurance foresees 150 franchised units (92% change), and three company-owned units (100% change), making for a total of 153 operating units (96% change). Franchised units would make up 98% of the total units.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
30 |
54 |
78 |
| | % Change | -- |
80.0% |
44.4% |
| | Company-Owned |
1 |
2 |
0 |
| | % Change | -- |
100.0% |
-100.0% |
| | Total |
31 |
56 |
78 |
| | % Change | -- |
80.6% |
39.3% |
| | Franchised as % of Total |
96.8% |
96.4% |
100.0% |
Investment Required
The franchise fee for a Fiesta Auto Insurance franchise is $10,000. Options are available for a retail tax office/kiosk-based business for a fee of $5,000. An Area Development program (3 for the price of 2 territories), and our Master Developer program are also available.
Fiesta Auto Insurance provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced. The following figures are for opening a new standard franchise; the estimated initial investment for a retail office/kiosk-based business is $12,875 – $80,900.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$5,000 |
$10,000 |
| |
Expenses While Training |
$0 |
$1,500 |
| |
Real Estate & Improvements |
$2,000 |
$36,000 |
| |
Equipment |
$1,600 |
$9,000 |
| |
Signs |
$200 |
$6,000 |
| |
Miscellaneous Opening Costs |
$0 |
$1,000 |
| |
Insurance Coverage |
$1,000 |
$3,000 |
| |
Software & Licensing Fees |
$575 |
$900 |
| |
Marketing Package |
$2,500 |
$3,500 |
| |
Additional Funds (3 Months) |
$0 |
$10,000 |
| |
Total Initial Investment |
$12,875 |
$80,900 |
Ongoing Expenses
Fiesta Auto Insurance franchisees pay a monthly royalty fee equal to the greater of between 10% to 25% of total insurance commissions (depending on the type of franchise) or $250. Additional fees include a policy manager software licensing fee of $150 a month and an insurance ratings software licensing fee of $125 to $250 a month. There is an annual licensing fee for the tax software.
What You Get–Training and Support
Fiesta Auto Insurance provides plenty of support both in training and preparation of the day-to-day business. Training starts with one week at the corporate office and is followed by continuous education via Fiesta University and weekly webinars.
In terms of day-to-day business, Fiesta Auto Insurance provides the added support from the corporate office and a sophisticated Agency Information Management System (Policy Manager) that reaches into the franchisee’s office on the insurance side and easy to understand and user friendly tax software (MaxTax) for the tax side. Fiesta Auto Insurance also offers all franchisees professional and highly effective marketing communication material through an automated ordering system.
Territory
Fiesta Insurance grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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