I’d like to know how a franchise insurance agency works in terms of:
- revenues (are the premiums collected given back to the insurance company, which invests them and gives back a commission to the franchise agency, or retained by the agency that gives a % of them to the insurance company?)
- investment (if the franchisee retains the premiums, does he also invest them and handle fund management? or does he simply retain them as liquid cash resources?)
- underwriting (who does it, the agency or the insurance company? in case a claim is legitimately filed, is it the agency or the insurance company to use its own resources to pay the reimbursement to the insured?)
- any other differences with respect to a normal insurance agency
I need this information for a research project
Thank you very much for your time
I am considering franchising my coffee shop. What questions should I ask the agencies beside price and fees? I want to make sure I ask the right questions about how to franchise. Starting a franchise is a challenging proposition in todays economy. Just wanting to make sure I choose the right franchise start up company to assist me.
