Keystone Insurers Services Group Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$27,750 - $99,200
Franchise Fee
$3,750
Min Cash Required
$27,750
Total US Locations
307
Business Summary
Keystone Insurers Group, LLC sells insurance products by granting franchises to independent insurance agents who operate as a Keystone Franchised Business. These businesses function as direct sales independent insurance agencies. Franchisees gain powers of appointment to sell a variety of insurance products, including personal, commercial, financial services, annuities, and health/ancillary products, under agreements negotiated and maintained by Keystone Insurers Group, LLC with various insurance companies (Keystone Insurance Carriers). Franchisees also have a limited right to use Keystone Insurers Group, LLC's trademark and trade name, and can purchase certain goods and services at discounted prices.
Corporate History
Keystone Insurers Group, LLC, the current franchisor, was formed as a Delaware limited liability company on June 28, 2024. It is a wholly-owned subsidiary of Keystone Agency Partners, LLC (KAP). The company's predecessor, Keystone Insurers Group, Inc., was originally incorporated in Pennsylvania on May 2, 1983. Keystone Insurers Group, LLC, through its predecessor, began offering franchises in 1999. Over the years, the company expanded its operations and affiliates, including Insurance Placement Services (2002), Employee Benefits—PA (2005), Employee Benefits—All Other States (2009), Keystone Program Group and Keystone Bonding and Surety Agency (2014), KAP (2019), and NJAA and CLI (2023).
Financial Overview
Investment Range
$27,750 - $99,200
Franchise Fee (Low)
$3,750
Franchise Fee (High)
$20,000
Minimum Cash Required
$27,750
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Keystone Insurers Group, LLC, through its predecessor, Keystone Insurers Group, Inc., received an unqualified audit opinion for its financial statements for the years ending December 31, 2023, 2022, and 2021. As of December 31, 2023, Keystone Insurers Group, Inc. reported total assets of $42.4 million and total liabilities of $16.5 million, with stockholders' equity of approximately $26 million. The company demonstrates healthy working capital of approximately $8.8 million. Net income for 2023 was $722,913, an increase from $197,049 in 2022, and cash flow from operating activities was $2,650,814 in 2023. The company is actively pursuing strategic growth through acquisitions, having acquired three new businesses in 2023, which impacted its long-term debt and intangible assets. No concerns regarding the company's ability to continue as a going concern were noted by the auditors.
Financing Details
Keystone Insurers Group, LLC offers direct financing for the initial franchise fee. Franchisees have the option to pay all or a portion of this fee in up to twelve equal monthly installments through a Promissory Note. The Promissory Note has a 0% interest rate, but a 10% per annum interest penalty is applied to any late payments. There are no documentation fees, collateral security requirements, or prepayment penalties. If a franchisee defaults on the Promissory Note, the entire unpaid balance becomes immediately due, and this could lead to the termination of the franchise agreement. Keystone Insurers Group, LLC or its affiliate acts as the lender and retains a right of setoff against any money or property owed to the franchisee under the franchise agreement. Keystone Insurers Group, LLC does not provide any other direct or indirect financing and does not guarantee franchisee obligations to third parties.
Performance Metrics
Total US Locations
307
Franchised Units
285
Corporate Units
19
Franchising Since
1999
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Keystone Insurers Group, LLC has disclosed two litigation cases. The first case, American Builders Insurance Company vs. Keystone Insurers Group and Ebensburg Insurance Agency, was filed on August 28, 2019. This dispute concerns the issuance of a workers' compensation insurance policy, with claims against Keystone Insurers Group, LLC and one of its franchisees for breach of contract, professional negligence, negligent misrepresentation, and fraudulent misrepresentation, seeking $1 million or more in damages. While summary judgment dismissed the defendants in September 2023, the plaintiff has appealed, and the case is currently awaiting disposition in an appellate court. The second case, Karen Boytos, Administratrix of the Estate of Victor Charles Boytos v. East Coast Risk Management, et al., was filed on December 20, 2017. This lawsuit alleges that East Coast Risk Management, an affiliate of Keystone Insurers Group, LLC, failed to provide appropriate safety services, leading to an accident where a traffic light arm fell on an employee. East Coast Risk Management disputes significant liability, noting the decedent was present during safety meetings that addressed avoiding such hazards.
Bankruptcy History
Keystone Insurers Group, LLC has no bankruptcy information required to be disclosed.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Keystone Insurers Group, LLC franchisees must have fully complied with all requirements of their agreement and not be in default. Franchisees must provide written notice of their desire to renew at least six months before the current term expires. As a condition of signing a Renewal Franchise Agreement, they will be required to sign the then-current form of agreement within 30 days of receipt, which may include terms and conditions that differ significantly from their original agreement. There is no renewal fee.
Training & Support Program
Franchisor Assistance
Keystone Insurers Group, LLC provides both pre-opening and ongoing assistance. Before opening, Keystone Insurers Group, LLC helps franchisees identify and transition existing insurance carrier agreements, educates them on Keystone Insurance Carrier Contracts, and assists in meeting premium placement requirements by facilitating transfers of insurance business. It also engages affiliates to evaluate employee benefits operations and strives to obtain powers of representation with selected Keystone Insurance Carriers for the franchisee. Ongoing support includes negotiating and maintaining Keystone Insurance Carrier Contracts, notifying franchisees of new carriers, assisting with obtaining new powers of representation, collecting and distributing profit-sharing funds and bonuses, and providing operational information, instructions, and techniques. Keystone Insurers Group, LLC also offers consultation services, which can be delivered on-site, off-site, or telephonically. A voluntary formal sales training program is available at an annual cost per participant, and mandatory or voluntary meetings for franchisees are held periodically. Additional strategic planning and consultation services may be available for separate fees through specific Keystone divisions.
Ongoing Support
After opening, Keystone Insurers Group, LLC provides ongoing assistance by continuously negotiating, administering, and maintaining Keystone Insurance Carrier Contracts. It informs franchisees about new Keystone Insurance Carriers and helps them acquire powers of representation and transfer insurance business. Keystone Insurers Group, LLC collects and distributes profit-sharing funds and bonuses to franchisees. It furnishes operational information, instructions, techniques, and materials related to the Keystone Franchised Business and System. Additionally, Keystone Insurers Group, LLC offers consultation services, which may be provided on-site, off-site, or telephonically. The company also offers a voluntary formal sales training program and may hold periodic product-specific training sessions (mandatory if the franchisee wishes to sell that product). Mandatory and voluntary meetings for all franchisees are conducted periodically. Further strategic planning and consultation services may be available through specialized Keystone divisions for additional fees.
Franchise Requirements
Ideal Candidate Profile
Keystone Insurers Group, LLC seeks independent insurance agents who are licensed and in good standing with their state insurance departments to operate a Keystone Franchised Business. Ideal candidates, and all equity owners of the business, are required to personally and directly supervise and act as business managers, actively participating in the direct operation of their Keystone Franchised Business. The number of Keystone Insurance Carriers available to a franchisee may be limited based on their size and experience.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Keystone Insurers Group does not grant exclusive territories, and there are no minimum geographic territory requirements specific to a Keystone Franchised Business. Since Keystone converts existing insurance agencies into franchisees, Keystone Insurers Group approves the operation of a Keystone Franchised Business at the location(s) where the franchisee is already established. If a Keystone franchisee wishes to relocate or acquire another agency, the relocation or acquisition must be approved by Keystone Insurers Group's State Vice President, Executive Vice President (Field Operations), and Chief Development Officer. This approval is based on whether the proposed change would violate noncompete or nonsolicitation restrictions as described in Item 16. Beyond these restrictions, there are no other geographical limitations on how Keystone Insurers Group franchisees may distribute products or solicit customers.
Staffing Notes
The primary staffing requirement for a Keystone Insurers Group franchisee is that the franchisee, or all of its equity owners, must personally and directly supervise and manage the Keystone Franchised Business on-premises. They are required to dedicate the necessary time, attention, and best efforts for the proper and effective operation of the business. Keystone Insurers Group does not obligate itself to provide assistance with hiring and training employees, as franchisees typically convert existing insurance agencies that already have their own staffing structures.