SelectQuote Insurance Services Franchise Opportunity (SQLocal)

Overview

SelectQuote Insurance Services (SQLocal) is an innovative franchise opportunity backed by one of the most recognizable names in the insurance industry. Rather than building an insurance agency from scratch, franchisees leverage the resources, technology, carrier relationships, marketing power, and brand recognition of SelectQuote—a publicly traded insurance brokerage that has been helping consumers compare insurance options since 1985.

The SQLocal franchise was created to bridge a gap that SelectQuote identified after decades of operating a highly successful direct-to-consumer business. While the company generates millions of inbound inquiries annually through its national advertising campaigns, a significant percentage of prospective customers still prefer to meet with a local insurance professional face-to-face before making important financial decisions. SQLocal gives entrepreneurs the opportunity to become that trusted local advisor while benefiting from the infrastructure of an established national organization.

Unlike many insurance agency opportunities, SQLocal is designed for entrepreneurs who excel at sales, leadership, and business development—not necessarily individuals with previous insurance experience.

Why SelectQuote Created SQLocal

For nearly four decades, SelectQuote has built one of the largest direct-to-consumer insurance businesses in the United States. The company invests approximately $300 million annually in advertising, generating roughly 6 million inbound consumer inquiries each year. These marketing efforts produce hundreds of thousands of policy sales through SelectQuote's nationwide team of licensed insurance agents.

However, company leadership recognized that many consumers—particularly Medicare-aged individuals—still prefer working with a trusted local advisor instead of purchasing insurance entirely over the phone. Rather than viewing this as a weakness, SelectQuote saw it as a tremendous opportunity.

SQLocal was developed to combine:

• The credibility and marketing power of a nationally recognized brand
• The convenience and trust of a local insurance advisor
• The scalability of a franchise business model

The result is a business that allows franchisees to capture demand that previously went underserved while leveraging SelectQuote's existing infrastructure.

A Powerful Competitive Advantage

One of SQLocal's greatest strengths is that franchisees begin with advantages that independent insurance agencies often spend years trying to build.

These advantages include:

• National brand recognition
• Hundreds of millions of dollars in annual advertising
• Proprietary technology
• Established carrier relationships
• Competitive commission structures
• Lead generation systems
• Extensive training
• Recruiting assistance
• Ongoing operational support

Few insurance opportunities allow an entrepreneur to launch with this level of infrastructure already in place.

Products Offered

SQLocal franchisees focus on products that can typically be sold during a single customer appointment.

Primary product lines include:

• Medicare Advantage
• Medicare Supplement plans
• Prescription Drug Plans
• Dental insurance
• Vision insurance
• Final Expense insurance
• Simplified-Issue Term Life Insurance

When customers require additional insurance products such as home, auto, or more complex underwriting cases, those opportunities can be referred to SelectQuote's corporate specialists, allowing franchisees to continue serving customers while earning referral opportunities where applicable.

Massive Market Opportunity

The insurance market targeted by SQLocal continues to experience strong long-term demand.

Several factors contribute to this opportunity:

• America's aging population
• Approximately 12,000 Americans reaching age 65 each day
• Growing Medicare enrollment
• Increasing demand for supplemental insurance
• Recurring renewal income
• Essential, recession-resistant products

Because insurance is a necessity rather than a discretionary purchase, many franchisees appreciate the stability that comes from serving an essential industry.

Lead Generation

Generating qualified leads is one of the most difficult and expensive aspects of running an insurance agency.

SQLocal attempts to remove much of this burden.

New franchisees receive:

• Five complimentary leads per day during their first six months
• Access to a proprietary lead marketplace
• The ability to purchase additional leads at varying quality levels based on their business goals
• Ongoing access to leads generated by SelectQuote's national marketing campaigns

Because SelectQuote already spends hundreds of millions of dollars generating consumer demand, franchisees benefit from marketing resources that would be virtually impossible for an independent agency to replicate.

Technology Platform

Franchisees receive access to SelectQuote's proprietary Agency Management System (AMS), which was developed specifically for its insurance business.

The platform includes:

• Comparative quoting tools
• Multi-carrier policy comparisons
• Customer management
• Accounting functionality
• Lead management
• Commission tracking
• Carrier integrations
• Operational reporting

Rather than manually obtaining quotes from multiple insurance companies, franchisees can quickly compare leading carriers side-by-side and help clients select the policy that best meets their needs.

Carrier Relationships

One of the biggest challenges for independent insurance agencies is negotiating competitive contracts with insurance carriers.

Because SelectQuote represents a tremendous volume of insurance business nationwide, franchisees gain access to carrier relationships and commission structures that may exceed what many independent agencies can obtain on their own.

Clients can compare policies from major carriers such as:

• Humana
• UnitedHealthcare
• Blue Cross Blue Shield
• Aetna

This carrier flexibility allows franchisees to position themselves as trusted advisors rather than representatives of a single insurance company.

Training and Support

One of SQLocal's most attractive features is that prior insurance experience is not required.

Instead, SelectQuote looks for entrepreneurs with strong sales, leadership, and recruiting abilities.

The company provides support with:

• Insurance licensing
• Product certification
• Sales training
• Technology training
• Recruiting
• Hiring
• Ongoing coaching
• Business consulting

SelectQuote has already developed extensive internal training systems through years of hiring and developing thousands of insurance professionals, and those systems are now available to franchisees.

Recruiting Assistance

Unlike many franchise systems that simply teach owners how to recruit, SQLocal can actively assist franchisees in hiring licensed insurance agents.

Support includes:

• Recruiting guidance
• Candidate sourcing
• Job advertising
• Licensing assistance
• Suggested compensation structures

Owners may hire employees as either W-2 or independent contractors, depending on their preferred business model. Franchisees who prefer to focus on selling can even utilize SelectQuote's recruiting team for additional hiring assistance.

Business Model

SQLocal is designed to evolve from an owner-operated business into a scalable sales organization.

The typical progression includes:

Phase 1

Owner obtains licensing, completes training, and begins selling policies.

Phase 2

Within approximately six months, franchisees are expected to hire their first sales representative.

Phase 3

Within the first year, franchisees establish a physical office location while continuing to build a team.

Phase 4

Owners expand by recruiting additional agents and potentially acquiring multiple territories.

This structure allows entrepreneurs to transition from producing income personally to building a recurring revenue business supported by a growing sales organization.

Recurring Revenue

Perhaps the most compelling aspect of the SQLocal opportunity is the recurring nature of insurance commissions.

According to SelectQuote:

• Franchisees receive approximately 80% of first-year commissions on new policies.
• They receive approximately 30% of renewal commissions on retained policies.

As policies renew year after year, renewal income can become a significant contributor to overall revenue. Over time, these recurring commissions may represent an increasingly large portion of the business, creating a more predictable income stream compared to businesses that rely solely on new customer acquisition.

Advantages

• Backed by a publicly traded insurance company with decades of operating history
• Nationally recognized consumer brand
• Significant annual advertising investment
• Built-in lead generation systems
• Multi-carrier quoting platform
• Proprietary technology
• Extensive training and licensing support
• Recruiting assistance
• Recurring renewal commissions
• Low overhead compared to many retail businesses
• Large protected territories
• Multiple expansion opportunities

Potential Considerations

As with any franchise opportunity, prospective franchisees should carefully evaluate whether SQLocal aligns with their goals and skill set.

Considerations include:

• Success depends heavily on sales ability and relationship building.
• Recruiting and managing insurance agents becomes increasingly important as the business grows.
• Insurance licensing and continuing education requirements must be maintained.
• Renewal income builds gradually over time, meaning patience and consistent production are important during the early years.
• Prospective owners should review the Franchise Disclosure Document carefully to understand all fees, obligations, and financial performance information.

Bottom Line

SQLocal represents a unique entry into the insurance industry by combining the entrepreneurial freedom of owning a local insurance business with the scale and infrastructure of one of the nation's largest insurance marketplaces. Instead of starting from scratch, franchisees gain access to an established brand, sophisticated technology, national marketing, carrier relationships, training, and ongoing operational support.

For entrepreneurs who enjoy sales, relationship building, and team leadership—and who appreciate the long-term value of recurring commission income—SQLocal offers a differentiated opportunity to build a scalable insurance agency with the backing of a nationally recognized organization. While the franchise is relatively new, it leverages decades of SelectQuote's operating experience and extensive infrastructure, potentially reducing many of the barriers typically associated with launching an independent insurance agency.