What's cost to buy a state farm agency?

Question

How much does it cost to buy a Allstate Agency?

Answer 1

You can't buy AllState, State Farm, Nationwide or some others. Because these are captive agents, the business is owned by the company, not the agent. To get an agency, you would go through a long, controlled process with any of the companies. If you want to purchase an agency, look at independent agencies. Some sell for 1.5 times the annual commission and some sell for 5 times the annual commission.

Answer 2

You Can't.

They have a very controlled process for their agencies.  The company utimately has the final say; although the agent must be compensated for their books of business.  In many cases agents cannot sale their business to their children.

If you are interested in being an agent for them.  You should speak to a current agent who will put you in touch with a local district manager or agent recruiter.

They have a long process; however most agents with the company I know are pretty happy with system.

If you want to simply buy an existing agency; look at their next biggest competitor.

Answer 3

To buy an existing agency - whether it's STate FArm or Allstate, or whatever, expect to pay between 3 and 5 times annual commissions, depending on profitability and contingencies.