Allstate Franchise Cost, Profit, Payback Period 2024

Do you want to work for yourself? What are you worth? Make a positive impact on your community?

You will have the opportunity to run your independent insurance firm, manage your agency’s future, and be recognized for operating a high-performing organization as an Allstate Exclusive Agent.

Keep reading to know more about the Allstate franchise.

Allstate Franchise

About The Allstate 

The Allstate Corporation is the nation’s largest and most profitable personal lines property insurance insurer, with over 16 million customers.

It’s about supporting local organizations and establishing new work opportunities to give back to the community.

Allstate has been safeguarding its consumers from life’s uncertainty and safeguarding them for the future since 1931.

You can increase your earnings by selling different products and even owning many agencies.

Allstate History

Sears held a national contest in 1925 to name a new brand of automobile tires. “Allstate” was chosen from over two million names submitted.

The following year, the trademark was approved. Sears Chairman General Robert E.

Wood praised the Allstate tire’s contributions to Sears’ retail store success because of the tires’ popularity in the catalog and retail stores.

Allstate Franchise Model

Cost Or FeesAmount
Franchise units10500
IndustryFinancial services
Area RequirementN/A

Why Become An Allstate Agency Owner?

Why Become An Allstate Agency Owner
  • Financial involvement in your company, with the possibility to expand into other markets
  • Ongoing training and assistance
  • Renowned marketers and a Fortune 100 company have recognized your brand
  • Advertising and marketing solutions that may be customized to help you expand your business
  • High potential for profit
  • No prior insurance experience is required
  • For your hard work, you will receive competitive remuneration, rewards, and incentives

Customizable Marketing Of Allstate Franchise

One may rely on Allstate’s multimillion-dollar national advertising efforts, as well as customized localized marketing and promotional materials such as brochures, mailers, and emails, as well as your unique web page and office branding as an Agency Owner.

Allstate Franchise Opportunity

This is your local Allstate office. That means you have complete control over your own company, from what you market to who you hire to when you perform.

You may do things your way from the time you open your doors.

They allow you more room to grow with no restrictions on how much you can earn; the sky is the limit for your earnings.

Being an Allstate Agency Owner necessitates a unique personality. A successful applicant is committed as well as motivated.

Someone who isn’t scared to take chances and reap the benefits. Someone who enjoys both helping others and living a nice life. Then becoming an Allstate Agency Owner is for you.

They ensure that you and your employees access higher education and support regarding their products, sales strategies, productivity advice, and promotional tools.

Allstate Franchise Revenue & Profit

The revenue of an Allstate owner varies depending on the size of your agency, the amount you are willing to invest, how much you work, etc.

As per resources, Allstate owners make between $200,000 and $600,000 in gross annual revenue. In fact, the top 10% make as much as $800,000 or more in gross revenue.

If we assume a profit margin of 15% as per the industry average, then we can calculate that an Allstate franchise owner makes $60,000 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%400000.00
Franchise Royalty Fees5.31%(21250.00)
Cost of Goods Sold (COGS)26.56%(106250.00)
Labor (Variable)13.81%(55250.00)
Total (Expenses)85.00%(340000.00)
Net Profit15.00%60000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Allstate Payback Period

With an investment of $100,000 and an estimated 15% profit on the average gross annual revenue, the yearly profit would be $60,000.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $100,000/ $60,000= 1.66 years

Based on these figures, it will take approximately 2 years to pay back the initial investment for Allstate. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Allstate Environmental Records

Allstate has a current sustainability team comprised of executives and senior executives from many departments.

The team works on company-wide sustainability measures, such as environmental initiatives that integrate “green” programs and practices across their operations.

Entrepreneurs considering a venture into the financial franchise sector might explore options such as  Liberty TaxH&R Block, and Ameriprise Financial Services.

Allstate Alternative

CompanyH&R BlockAmeriprise Financial Services 
Founded In19951894
Initial Investment$31,557-$157,898$10,432 to $114,480
Total Outlet12,0004246
Annual Revenue$3.463 Billion$11.9 Billion

Frequently Asked Questions

Is Allstate a stock or mutual company?

It is a stock company

Where are Allstate headquarters?

The headquarters of Allstate is located in Northfield Township, Illinois, USA.

Is Allstate a product based company

No, Allstate is not product based company

Is Allstate a franchise?

No, Allstate agents are not franchises.

How much does an Allstate Franchise Cost?

The initial investment cost of the Allstate franchise ranges from $31,557-$157,898, with an additional franchise fee of $2,500.

Who owns Allstate?

Allstate Corporation is an American insurance company which is owned by its shareholders. The biggest shareholders of the company are, The Vanguard Group, State Street Corporation, and BlackRock.

How many locations does Allstate has?

There are 7,542 locations in the United States.

Who founded Allstate?

Sears, Roebuck founded Allstate in 1931.

Leave a Comment