Estrella Insurance

Can you provide detailed information about the 2 units that were terminated in 2024, including the specific reasons for termination and whether these were related to performance issues or contract violations?

The pending litigation case against the franchisor—what is the nature of this dispute, which party initiated it, and what financial or operational exposure does it present to franchisees?

Why is the monthly technology fee of $1,500 substantially higher than industry standards ($225-$586.25), and what specific technology services and support justify this cost?

The advertising fund rate of 7.0% is nearly double the typical range of 1.5-4.0%—how is this fund allocated and invested, and what measurable marketing results do franchisees receive?

Given the 2 closures in 2024, can you clarify which units closed voluntarily versus which were terminated by the franchisor, and whether closures were due to market conditions or franchisee performance?

The median gross sales of $4.4 million significantly exceeds typical insurance franchises—is this figure audited, and how many of the 4 current units are actually achieving this revenue level?

What encroachment protections exist beyond exclusive territory, and has the franchisor ever placed additional franchises or company-owned locations within existing franchisee territories?

The non-compete radius of 50 miles is double the typical range—how strictly is this enforced, and what happens if a franchisee wishes to open a non-competing business after expiration?

Can you explain the significant discrepancy between the current 4 units, the 6 units from one year ago, and the 4 units from three years ago—what caused the spike to 6 in 2023 and the subsequent decline?

With a 33.3% termination rate in one year, what are the primary causes franchisees are cited for when contracts are terminated, and how many have successfully appealed or negotiated settlements?

What specific training, ongoing support, and resources does the franchisor provide given the System Health score of 0/100, and how does the franchisor respond to the apparent lack of system performance data?

The transfer fee of $12,500 combined with a 0.0% transfer rate suggests no franchisees have exited through transfer in the past year—why are existing franchisees unable or unwilling to sell their units?

Are there any claims or complaints filed with insurance regulators or the FTC regarding Estrella Insurance franchising practices that may not appear in civil litigation data?

What is the current status of the pending litigation case, what are the potential outcomes, and could an unfavorable ruling affect the franchise agreement or require modifications?

Given the 10-year renewal term and 30-year potential total term, what are the renewal conditions and fees, and how many franchisees have renewed versus exited at the end of their initial term?

Can you provide audited financial statements or Item 19 performance claims for each of the 4 current franchisees to verify the $4.4 million median sales figure?

The termination causes count of 11 is below the typical range—what specific events trigger immediate termination without cure periods, and which events provide the 10-day or 30-day cure periods?

What is the franchisee's liability for indemnification under the personal guarantee, and what specific scenarios would trigger enforcement of the spousal guarantee requirements?

If a franchisee wishes to exit before the 10-year initial term expires, what penalties, buyback obligations, or additional restrictions apply beyond the 50-mile non-compete?

Why does the Risk Factors score of 8/100 fall so far below the typical range of 48.0-72.0, and what specific risk mitigation measures has the franchisor implemented in response to the high turnover?