10 Easy Steps to Start an Insurance Franchise in the US

There’s something powerful about owning a business that helps people protect what they care about most, like their homes, health, cars, and families. That’s what you do when you own an insurance franchise. 

However, with over 33 years of experience in this field, we’d simply say that entrepreneurship in the insurance industry isn’t about flashy hype. If you want to start an insurance franchise successfully, you have to build trust, understand the risk, and do the kind of work that rewards consistency. 

It’s also true that starting an insurance franchise might seem like a big leap. But if you have the right business model, strong mentorship, smart technology, and marketing support, you can be a successful franchise owner in the U.S. 

Wondering where to start? Well, in this step-by-step guide, we’ll simplify the entire process of starting an insurance franchise in the U.S. We’ll walk you through from choosing the right insurance franchise to setting up your first insurance agency franchise. You’ll learn how to stay compliant, build a target market, and grow a business that brings real profit, real purpose, and long-term return on investment. 

Learn More: What Is an Insurance Franchise? 

10 Easy Steps to Start an Insurance Franchise

According to IBIS World, there were 428,990 insurance brokers and agencies in the U.S. as of 2024, marking a 0.8% increase from 2023. That’s nearly half a million active businesses in this space, and yes, that includes independent insurance agents, franchise owners, and solo agency owners alike. And there’s still room to carve out your place with the right insurance franchise. Why shouldn’t you? After all, the global insurance franchise market is worth $1.59 trillion in 2024, which is expected to grow to $2.36 trillion by 2031. 

So, if you're looking to break into this thriving industry, here are 10 simple steps to get started:  

1. Research the Insurance Industry and Local Market
2. Choose the Best Insurance Franchise to Own
3. Understand Legal Requirements and Get Licensed
4. Secure Funding or Business Loan Options
5. Review the Franchise Disclosure Document (FDD)
6. Sign Your Franchise Agreement and Pay the Franchise Fee
7. Complete Franchise Onboarding and Training  
8. Set Up Your Business Structure and Location
9. Develop Your Marketing Strategy and Brand Presence
10. Launch Operations and Start Selling Insurance Policies

Now, let’s explain what you have to do in each step to successfully open an insurance franchise in the U.S.

Step 1: Research the Insurance Industry and Local Market

You can’t build a strong franchise without knowing the ground you’re standing on. Research is the foundation. It shows you what’s working, what’s needed, and where the real opportunity lies in the insurance franchise space. 

The insurance franchise market in the United States is enormous. According to the Verified Market Reports, the market size was valued at 15 billion in 2023, and it’s projected to grow at a 6.5% CAGR, reaching USD 25 billion by 2033. It means more consumers are looking to insure their lives, health, vehicles, homes, and businesses. And it means more room for entrepreneurs ready to meet that demand. 

However, big states mean nothing if you don’t know your local market. 

Let’s say you want to open an insurance franchise in Traverse City or Battle Creek, Michigan. You need to know the target market. Therefore, you should ask about the population size. Is the area mostly served by large companies, or is there room for a new brand that offers great customer service? Do people in this region buy health insurance, auto insurance, or home insurance more often? What do the competitors look like? 

This is where your homework begins. Ask:

• What types of insurance policies are most in demand locally?
• Are there already several insurance agencies operating in that city?
• What’s their pricing, advertising, and brand presence like?
• Do I want to offer personal lines like auto insurance, life insurance, or focus on small business insurance or property insurance?
• Is the local economy strong enough to support a new insurance business?
• What regulatory compliance and licensing requirements apply in this state? 

Answering these questions gives you clarity and customize your approach. If your franchisor is recognized as an affordable insurance agency and offers great customer service, there is always a chance to thrive as a franchise owner. Just make sure to pick the right marketing strategy, and understand what technology, training, or mentorship you’ll need from the franchisor. 

Step 2:  Choose the Best Insurance Franchise to Own

Not every insurance brand fits your goals. You have to choose the right one to make all the difference. You can start by comparing the insurance franchise model and price. Look at what each franchisor offers, such as onboarding, tech tools, product access, and customer support. 

Also, study their reputation, what kind of insurance policies they sell, and how they help you stay compliant with regulatory standards. Brands like L.A. Insurance, for example, stand out with low barriers to entry, strong brand awareness, and flexible models that support home-based support and digital sales as well. 

The start-up cost to become an L.A. Insurance franchisee is just $2,500, which is affordable for almost anyone who is planning to get into the insurance business. In contrast, other brands like Freeway Insurance, Fiesta Insurance, or Renegade Insurance charge roughly between $25,000 and $85,000. 

And just because we’re affordable doesn’t mean we will leave you alone. We provide training, software, marketing, and lead generation support, especially valuable for those wondering how to start an insurance franchise without experience. 

When comparing options, ask the following questions:

• Does the franchise support online, remote, or from-home operations?
• What is the total insurance franchise cost?
• Does the brand offer a variety of insurance products, like auto insurance, health insurance, and business insurance?
• How strong is their customer relationship management system?
• What kind of mentorship, compliance help, or training do they provide?

Step 3: Understand Legal Requirements and Get Licensed

Before you can sell a single policy, you need to be licensed. And not just any license, but the one that meets the state’s specific rules and matches the type of insurance policies you plan to sell. 

Regulations and requirements in every state are different. It’s often overseen by bodies like the National Association of Insurance Commissioners (NAIC) or state-specific bodies. So, whether you’re in Michigan, Florida, Texas, Colorado, Nevada, Georgia, or Arizona, you’ll need to check your state’s exact process for applying and qualifying. 

If you don’t have the required license or if you’re not a licensed insurance agent, you can ask for help from your franchisor to get licensed. In many cases, a franchisor may help you acquire the right one even if you don’t have any prior experience in the insurance industry. 

If you’re offering health insurance, property insurance, casualty insurance, or life insurance, you’ll need multiple licenses. Most states require pre-licensing education, an exam, a background check, and an application fee. You’ll also need an employer identification number (EIN) and may choose to register as a limited liability company (LLC) or sole proprietorship, depending on your business goals. 

Once you’re licensed, you’ll also need to stay compliant. That means tracking renewals, meeting ongoing training requirements, and staying aligned with regulatory compliance standards at both the state and federal levels. 

In short, getting your license is the start of becoming a fully qualified, legally ready insurance franchise. And the sooner you check this off, the sooner you can start building brand awareness, closing sales, and making real income from your insurance business. 

Step 4: Secure Funding or Business Loan Options

Every insurance franchise requires a strong financial base, regardless of how minimal your operations are. Whether you’re launching from a storefront or learning how to start an insurance franchise from home, you’ll need to calculate your startup budget. That includes franchise fee, license costs, tech tools, marketing, and operational space (if applicable). 

If you’re short on cash flow, you have options. Many franchisees apply for a small business loan through the SBA or their local bank. Some use personal savings or take franchisor financing plans, while others might take advantage of business credit, a finance partner, or outside investment. 

But before you borrow money, make sure to get clear on your numbers. Know your total insurance franchise cost, monthly operating expenses, and expected revenue. For example, if you choose L.A. Insurance as your franchisor in Michigan, your start-up cost will be $2,500 only, and you can generate around $12K to $15K revenue per month. 

When seeking funding, consider mentorship and support programs as well. These programs can help first-time insurance agents or those starting with little experience. They may offer internal funding assistance or low-cost entry options. 

Step 5: Review the Franchise Disclosure Document (FDD)

The Franchise Disclosure Document is not just simple paperwork; it’s your preview into the full business deal. It outlines the franchise fee, royalty structure, legal obligations, brand rules, advertising requirements, and more. You can even see the franchisor’s financials, any past lawsuits, and a list of current and former franchisees as well.  

Read it carefully and thoroughly. If you don’t understand any section, you should get legal aid from a franchise attorney. Also, we recommend requesting the FDD from at least three franchisors. And before you decide to sign one, compare fees, territory rights, royalty rates (usually 5-7% of gross sales), and training support. 

Step 6: Sign Your Franchise Agreement and Pay the Franchise Fee

Once you’re confident enough in your decision, make it official. The franchise agreement is a binding contract between you and the insurance company. It details everything: your rights, obligations, territory, brand standards, and how the franchisor will support your business. 

Before signing, always double-check that the terms in the agreement match what was outlined in the FDD. Pay attention to renewal terms, exit clauses, fee schedules, and your responsibilities around customer service, training, and compliance. 

And once you sign this, you’re not just an aspiring agency owner anymore. You’re officially a franchisee. Next, you need to undergo the onboarding and training process.  

Step 7: Complete Franchise Onboarding and Training 

Now that you have signed out your agreement, you need to prepare for the future of your insurance business. This phase will be guided by your franchisor through structured onboarding, like covering tools, systems, and compliance. 

The training phase will also include insurance policy sales, lead management, regulatory compliance, and how to use their software. You’ll also learn how to handle customer service, process claims, and navigate your CRM (Customer Relationship Management) platform. 

Depending on your franchisor, the session might be held in-person or in virtual modules. Entrepreneurs and business enthusiasts who are interested in figuring out how to start an insurance franchise online or from home can expect virtual training sessions. 

However, no matter how it happens, you need to complete this phase successfully. It’s one of the most critical steps that not only builds confidence but also gives you a hands-on understanding of how to run the business model day to day. 

In case you need to hire a team, you’ll also have to train them well enough. According to the International Franchise Association’s (IFA) 2024 survey, franchisors report that 80% of their franchisee have open positions they cannot fill. Therefore, focus on training yourself and your support team so that you thrive in your area as a franchisee.

Step 8: Set Up Your Business Structure and Location 

Before you can open your doors, whether it’s virtual or physical, you need to establish your business structure. Most insurance franchisees choose between a limited liability company (LLC) or sole proprietorship, depending on liability concerns and tax flexibility. You’ll also need an Employer Identification Number (EIN) for filing and operations. 

Next comes your location. If you’re opening a storefront, choose a space with foot traffic and visibility to build local brand awareness. But if you’re thinking of operating an insurance franchise from home, make sure your digital tools, software, and communication systems are solid. Many top insurance franchisor brands, including L.A. Insurance, offer all sorts of support for flexible business models. You just have to ask for it. 

Step 9: Develop Your Marketing Strategy and Brand Presence

Now it’s time to attract customers, and that should begin with a smart and effective marketing strategy. Your franchisor may offer branded templates, local ad support, or even lead generation tools. But your success depends on how well you connect with your target market. 

Focus on a multi-channel marketing strategy. And try to improve digital and local visibility. Use Google Ads, social media, and SEO to reach online audiences, especially if you’re offering insurance solutions remotely. Offline, sponsor local events, build referral relationships, and invest in simple signage to boost brand awareness. 

Step 10: Launch Operations and Start Selling Insurance Policies

Now comes the moment you’re waiting for, which is launching your insurance franchise and serving your very first customer. With your systems, software, and training, it’s time to go live and start offering real-world insurance policies. 

You should make sure operations are smooth from day one. It includes answering calls, quoting accurately, processing applications, and providing prompt customer service. 

Whether you’re selling auto insurance, rental insurance, home insurance, or health insurance, your success depends on your ability to explain coverage clearly and match each client with the right policy. 

Always try to build trust and collect feedback. Watch your cash flow, track conversions, and refine your sales process. One of the key benefits of joining an insurance franchise is the support you receive early on — we recommend working closely with the franchisor for the first 90 days. They often provide launch support, scripts, and management tools. And once you start earning revenue, allocate at least 5–10% of gross revenue for marketing purposes.

How Do I Start an Insurance Franchise with L.A. Insurance

Starting an insurance franchise with L.A. Insurance is refreshingly simple. You don’t need a fortune, years of experience, or a massive team. What you need is drive. Simply fill out the franchise form, and L.A. Insurance will take care of the rest. 

As has been said, the start-up cost of owning a franchise with L.A. Insurance is just $2,500, with no royalty fees. It makes us one of the most accessible models in the insurance industry. From the moment you sign a contract with us, you’ll get step-by-step support, including onboarding, training, marketing tools, and access to multiple insurance carriers (e.g., Progressive). On top of that, you can become a franchise owner with us even if you don’t have any previous experience. We will guide and train you from scratch! 

We have 78 franchised locations nationwide, with 13 of them in Michigan. We welcome entrepreneurs, licensed agents, and first-time owners who want to start a scalable business. With an average franchise income between $12,000 to $15,000 per month. 

What Do I Need to Start an Insurance Franchise in Michigan?

To open an insurance franchise in Michigan, under any brand like L.A. Insurance, you’ll need to meet the state’s licensing requirements. Our agency is currently offering insurance franchise opportunities in 19 locations in Michigan, and these are:  

• Traverse City
• Rapid City
• Petoskey
• Charlevoix
• Mackinaw City
• Owosso
• Port Huron
• Midland
• Ludington
• Coldwater
• Niles
• Sault Ste Marie
• Sturgis
• Grand Haven
• New Buffalo
• Menominee
• Birch Run
• Bay City
• Battle Creek

If you want to become an insurance franchise owner in any of these cities in the Great Lake State, here’s what’s typically required (for a property & casualty insurance agent):

• Complete pre-licensing education
• Pass the Michigan insurance licensing exam for property and casualty
• Apply for your license via NIPR (National Insurance Producer Registry)
• Complete a background check and fingerprinting, both mandatory
• Fulfill continuing education; 24 hours every two years to maintain license

Once you are licensed, you can partner with L.A. Insurance or any of your desired franchisors in Michigan. To learn more about licensing, check the Michigan Department of Insurance and Financial Services (DIFS).  

Answering FAQs about Starting an Insurance Franchise

How many franchise locations are currently operating under the L.A. Insurance brand? 

L.A. Insurance currently operates 78 franchise locations across the U.S., including 13 in Michigan. With active expansion in states like Nevada, Texas, Georgia, and Florida, the brand continues to grow across diverse markets. 

Can I start an insurance franchise with no money? 

You can start small, but you’ll need at least $2,500 to launch with L.A. Insurance. While it’s a low-cost entry, basic funds are still required for licensing setup and minimal operations. 

Can I start an insurance franchise from home? 

Yes, L.A. Insurance allows you to run a home-based franchise. With the right licenses, tools, and internet setup, you can work from home and serve clients online.  

Can I start an insurance franchise with no experience? 

You do not need experience to get started. Having a license helps, but L.A. Insurance offers full training, onboarding, and support. This is great for those new to the field or switching careers.