Choosing the right path to owning an insurance agency is a big decision—and one that can shape your success, income, and lifestyle for years to come. This self-assessment tool helps you evaluate whether an independent, franchise, or captive insurance agency model is the right fit for your goals, experience, resources, and preferences. Use the sections below to evaluate your motivations, skills, and support needs.
Part 1: Quick-Start FAQ
Q: What’s the biggest difference between independent, franchise, and captive agencies?
A: Independent agencies offer full autonomy. Franchise agencies (which are still independent) provide support and systems under a shared brand. Captive agencies represent a single carrier with limited control.
Q: Which model is more expensive to start?
A: Independent: $20,000-$175,000+
Franchise: $20,000–$175,000+
Captive: $50,000-$100,000+
Q: How are commissions paid?
A: Independent agencies receive the full amount of commissions paid by carriers, typically ~15% of the premium amount. Renewal commissions are often lower than new business commissions, ranging from ~2%-15%.
Franchise agencies typically keep ~75–90% of new business commissions and depending on the level of support offered for servicing, renewal commissions can range from ~50%-75%.
Captive agencies earn about 5%-10% on New Business and Renewals can range between 2% and 15%. Some captive models may offer a base salary but lower commissions.
Source: Insurance Business Magazine
Q: Which model is quickest and easiest to launch?
A: A Franchise model is usually the quickest and easiest to launch due to its turnkey nature. Most franchisors offer a full suite- tech platform, carrier appointments, training, marketing, compliance, and office set-up support.
Captive models are easier due to provided systems but can take longer to get launched due to strict office set-up rules and regulations.
An independent agency is the most time-consuming to get launched since it is a built-from-scratch model.
Q: Can I change models later?
A: It is possible, but all transitions come with key considerations. The main factor is often contractual obligations, non-compete clauses and carrier relationships.
Going from a captive agency owner to an independent or franchise owner can be the most difficult, especially if you have owned your agency for a long time. Captive owners usually don’t own their books of business, so customers cannot be taken with you. Captive to full independent is the most difficult since a franchise model offers a smoother transition with a blueprint to follow.
Going from independent to a franchise model can be a smart move if you are overwhelmed with operations and want more support. You'll likely need to shift carrier contracts, and a book transfer may involve rewriting policies under new contracts, but the franchisor may help with that process.
Exiting a franchise model may or may not be an easy transition depending on contract terms. You may be able to negotiate a buyout of your book from the franchisor or another franchisee in the system may offer to buy your book. You also typically have the option to pass your business down to a loved one if you wish to.
Going from independent to captive is perhaps the easiest transition, but it does essentially mean you’ll be starting all over again. Many of your prior clients may not be able to or want to transfer to your new captive agency but the biggest advantage of owning an independent agency is full ownership of your book of business.
Q: Which model is easier to scale?
A: A franchise model can be the easiest and quickest to scale due to there being a proven system in place for you to follow. Success is highly dependent on the market you’re in, the amount of capital you have to invest in marketing, and your willingness to follow a blueprint.
An independent agency model can be highly scalable but largely depends on your capital and the number of appointments you are able to establish for yourself. Scalability is favorable with an independent model, but it may also take the longest time.
Captive scaling is often very difficult due to limited product range. Your growth is tied to one insurer’s systems, underwriting, compensation, and brand strategy.
Q: What kind of support is available?
A: A franchise can offer comprehensive support, but not all models offer servicing, recruiting or marketing support.
With an independent model, you are responsible for everything from A to Z. You may be able to utilize some out-of-the-box solutions, but they likely won’t be customizable, and expenses can add up very quickly.
A captive model is more like a franchise model but servicing is typically more of a shared responsibility between the agency and corporate. Many captive agents end up hiring their own licensed customer service representatives (CSRs).
Source: The Captive to Independent Agent Journey
Part 2: Self-Assessment Questions
Use these questions to identify which model fits your situation best.
Goals & Motivation
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Am I more motivated by long-term equity or immediate momentum?
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Do I want to build my own brand, or leverage an existing one?
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Is my goal to maximize independence or accelerate scalability?
Business Experience
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Do I have experience running a business, hiring, or building tech infrastructure?
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Am I comfortable making decisions without a roadmap?
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Would I benefit from training and coaching early on?
Financial Readiness
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Do I have enough working capital to pay any up-front fees, but also have enough to support my operations, including marketing expenses, in my first year?
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Can I afford a 6–9 month runway before profitability?
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Would I prefer variable costs I control, or predictable franchise fees?
Support & Resources
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Do I want hands-on help with marketing, service, and technology?
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Would I rather choose my own systems or use those provided?
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Am I comfortable negotiating carrier appointments myself?
Risk & Control
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How much does full control matter to me?
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Am I okay with brand rules, royalty payments, or possible territory restrictions?
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Do I want the flexibility to sell or exit on my terms?
Sales & Service Focus
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Would I rather spend time selling or managing back-office operations?
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Do I enjoy marketing and recruiting, or prefer having support in those areas?
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Will I handle service in-house, outsource it, or want a shared solution?
Use this matrix to evaluate how well each model aligns with your preferences. Rate each statement from 1 (Strongly Disagree) to 5 (Strongly Agree).
| Statement | Score (1–5) |
|---|---|
| I want full control over branding, tech, and operations. | |
| I feel confident negotiating with carriers on my own. | |
| I’m ok with hiring my own support staff. | |
| I’m comfortable learning through trial and error. | |
| I’m okay with a slower launch if it means full independence. | |
| I’d rather build everything myself to my liking rather than utilizing out-of-the-box resources. | |
| Being part of a brand name that could help me with marketing my agency isn’t a concern for me. | |
| I’d prefer not to pay a royalty fee even if it simplifies my operations. I want to be in full control of everything I do. | |
| I’d prefer not to pay a royalty fee even if it simplifies my operations. I want to be in full control of everything I do. | |
| I want to be able to market my agency the way I want to. | |
| Having ownership of my book of business is very important to me. | |
| I want the freedom to sell the products I want to. | |
| Having a retail store front is not important to me. | |
| Total Score |
Scoring Guide:
44-60- You are likely a better fit for an independent agency model
28-44- A franchise agency model is likely a great fit for you
12-28- A captive agency aligns closer with your goals
Part 3: Additional Considerations
Use the questions below to further reflect on lifestyle, branding, and peer support preferences.
Exit Strategy
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Do I want to build and eventually sell my agency?
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Will I own the equity associated with my book in the model I choose?
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Will a franchise or carrier agreement restrict my exit path?
Work-Life Balance
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How much flexibility do I need? In both the short-term and long-term.
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Will I be full-time or balancing other commitments?
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Am I prepared for evening and weekend client and referral interactions?
The answers to these extended questions provide critical insight into how well your daily work style and personal goals align with the demands and freedoms of each model.
Part 4: Final Thoughts
There’s no right or wrong path—only the one that best aligns with your vision, resources, and preferences. Use this tool to explore not just what you want your business to look like—but how you want to build it, grow it, and experience it daily.
When you're ready to explore a model that blends support, autonomy, and proven scalability, Brightway's franchise platform offers the tools and guidance to build confidently from day one.