Pronto Insurance
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Pronto Insurance has more than 14 years of experience operating large numbers of highly successful insurance agencies in the state of Texas. It has developed a competitive product line and an effective business model that consistently outperforms the competition. Pronto Insurance strives to provide peace of mind to the value-focused consumer through convenient insurance and financial products.
A Pronto franchisee receives the advantage of brand recognition as well as extensive training and expert support in operations, marketing and human resources. This affordable franchise is one-of-a-kind and unique in the industry. There is no need to invest in high-cost equipment, large inventories or a large staff like the majority of franchises. Franchisees simply equip an office in a retail location, hire a few employees and are on their way to running a Pronto Insurance Franchise.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
0 |
2 |
23 |
| | % Change | -- |
-- |
1050.0% |
| | Company-Owned |
33 |
55 |
87 |
| | % Change | -- |
66.7% |
58.2% |
| | Total |
33 |
57 |
110 |
| | % Change | -- |
72.7% |
93.0% |
| | Franchised as % of Total |
0.0% |
3.5% |
20.9% |
Investment Required
The franchise fee for a Pronto Insurance agency store is $20,000. Co-Branded franchises or a franchise converted from an existing insurance agency has a fee of $15,000. Pronto Insurance also has an Area Development Program available.
Pronto 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.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$20,000 |
$20,000 |
| |
Business Licenses & Permits |
$150 |
$300 |
| |
Leasehold Improvements |
$15,000 |
$25,000 |
| |
Fixtures, Furnishings & Equipment |
$15,500 |
$26,000 |
| |
Computer System |
$1,800 |
$2,400 |
| |
Architect/Engineering Fees |
$150 |
$250 |
| |
Rent, Security Deposits and Utility Deposits |
$2,400 |
$4,000 |
| |
Other Professional Fees |
$100 |
$200 |
| |
Insurance Deposit |
$225 |
$400 |
| |
Initial Inventory of Operating Supplies |
$250 |
$350 |
| |
Expenses While Training |
$500 |
$1,200 |
| |
Grand Opening Advertising |
$5,000 |
$5,000 |
| |
Additional Funds (3 Months) |
$10,000 |
$15,000 |
| |
Total Initial Investment |
$71,075 |
$100,100 |
Ongoing Expenses
Pronto Insurance collects all gross franchise revenue earned by the franchise, and pays franchisees a sales commission equal to 12% of all insurance premium revenue and 90% of all tax preparation fee revenue, with a minimum of $150 retained each month. Additional fees include an advertising obligation of the greater of $500 per month or 1% of gross franchise revenue and a quality control evaluation fee not to exceed $500 per year.
What You Get—Training and Support
Pronto Insurance has developed a comprehensive training program that teaches franchisees every aspect of the insurance business model. This model can be broken down into the following: selling policies, providing excellent customer service, managing employees and bookkeeping. Pronto Insurance also assists franchisees in the site selection process, which is extremely important to the success of a business. The approval of a specific location is dependent on a vigorous demographic study, contingent upon a proven formula that incorporates a large number of factors like specific demographics, traffic counts, physical attributes and competition. Franchisees are also provided with the Pronto Insurance proprietary software needed to track and maintain a book of business.
The Managing General Agency at Pronto Insurance corporate headquarters provides the support that franchisee customers need when dealing with a claim or policy care. Local Pronto staff supports franchisees in taking care of their clients. Furthermore, two million dollars is spent by Pronto Insurance in advertising and marketing across the state to provide franchisees with a strong marketing presence.
Territory
Pronto Insurance offers Area Development Agreements.
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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