Risk Score
Pending analysis
Investment Range
$26,600 - $114,750
Franchise Fee
$5,000
Min Cash Required
$100,000
Total US Locations
183
Business Summary
Pronto Franchise, L.L.C. offers franchises for businesses that operate under the name "Pronto" and related marks. These businesses specialize in offering, selling, and servicing various insurance policies, including auto insurance, commercial and small business insurance, and personal property insurance. Pronto Businesses operate at retail locations and use a distinctive system, including interior and exterior design, uniform standards, training, and marketing programs.
Corporate History
Pronto Franchise, L.L.C. was formed on January 16, 2009, in Texas. However, the original Pronto business was started earlier in December 1997 by Juan Varela, which then expanded through various affiliates. In 2018, Risk Placement Services, Inc. (RPS), a subsidiary of Arthur J. Gallagher & Co. (AJG), acquired Pronto Holdco, Inc., which is Pronto Franchise, L.L.C.'s parent company. Pronto Franchise, L.L.C. primarily operates as a franchising company and does not directly own or run its own insurance businesses, though its affiliates do.
Financial Overview
Investment Range
$26,600 - $114,750
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$100,000
Minimum Net Worth
$300,000
Marketing %
1%
Equipment Costs (Low)
$10,850
Equipment Costs (High)
$50,100
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pronto Franchise, L.L.C.'s financial statements indicate that in 2023, the company had a net income of $135,612 and a healthy working capital surplus of $228,377. In 2022, the company reported a net loss of $33,352 but still maintained a working capital surplus of $91,576 and generated positive operating cash flow. In 2021, the company incurred a net loss of $101,748 and used cash from operating activities, though it still had a working capital surplus of $122,217. Pronto Franchise, L.L.C.'s parent company has stated that it would provide additional capital if needed, suggesting stable financial support.
Financing Details
Pronto Franchise, L.L.C. does not provide any direct or indirect financing to its franchisees. Pronto Franchise, L.L.C. also does not guarantee any notes, leases, or other financial obligations for franchisees. However, its franchisees may be eligible to qualify for Small Business Administration (SBA) loans.
Performance Metrics
Total US Locations
183
Franchised Units
29
Corporate Units
154
Avg Square Footage
1,150
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pronto Franchise, L.L.C. has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Pronto Franchise, L.L.C. has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
Pronto Franchise, L.L.C. states that to renew, a franchisee must not be in default of any agreement, meet minimum performance standards, sign the franchisor's then-current franchise agreement (which may have different and potentially less advantageous terms), renovate and modernize the premises to current brand standards, satisfy current training requirements, execute a general release, and pay a $5,000 renewal fee.
Training & Support Program
Franchisor Assistance
Pronto Franchise, L.L.C. offers comprehensive support before and after a Pronto Business opens. Pre-opening assistance includes approving the site, providing initial training for up to three people (covering instruction and materials, but not franchisee's travel/lodging), furnishing design standards for the business layout and equipment, and conducting pre-opening and grand opening on-site supervision. Franchisees also receive loaner operating manuals and a list of approved suppliers. For ongoing support, Pronto Franchise, L.L.C. may conduct periodic inspections and evaluations, make additional training programs available, and provide advisory assistance on operations. Pronto Franchise, L.L.C. handles the collection of insurance premiums and the calculation and payment of sales commissions to franchisees. It also reserves the right to establish a system-wide advertising fund and provides access to an intranet for communication and resources.
Initial Training Hours
76
Training Location
Designated Company-owned Pronto Business in California (or virtually/remotely); Refresher training may be at headquarters in Brownsville, Texas or other Company-owned Pronto Businesses
Ongoing Support
Pronto Franchise, L.L.C. provides ongoing support to its franchisees through periodic inspections and evaluations of the business's operations. Franchisees receive continuing advisory assistance on the operation of the Pronto Business upon request. Pronto Franchise, L.L.C. also makes additional training programs available and may require franchisees, their Designated Principal, and General Manager to attend refresher courses, seminars, meetings, and annual conferences. Pronto Franchise, L.L.C. covers the instruction costs for these programs if held at its headquarters in Brownsville, Texas, or at its company-owned Pronto Businesses, but charges a per diem fee plus expenses if the training is requested at the franchisee's location. The franchisor also processes all insurance premium payments and related Sales Commissions, and maintains an intranet for communication and information dissemination.
Franchise Requirements
Ideal Candidate Profile
Pronto Franchise, L.L.C. primarily looks for candidates who meet specific financial qualifications, requiring a minimum net worth of $300,000 and $100,000 in liquid capital. Beyond these financial criteria, the franchisor seeks qualified individuals, and does not explicitly state requirements for prior industry, management, or sales experience.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
non-exclusive
Staff Count
2
Territory Size Requirements
Pronto Franchise, L.L.C. grants franchisees a non-exclusive Area of Primary Responsibility, which is mutually agreed upon with the franchisor and specified in the Franchise Agreement. The size and boundaries of this area are determined by factors such as whether the location is urban or suburban, the local population density, and the number of competing businesses in the vicinity.
Staffing Notes
Pronto Franchise, L.L.C. requires each Pronto Business to maintain a staff of at least one licensed manager and one licensed agent. Franchisees are responsible for training these staff members to the franchisor's standards and meeting any minimum staffing requirements set by the franchisor. Franchisees have sole responsibility for all employment decisions, including hiring, firing, scheduling, and managing employees, as well as ensuring compliance with all relevant labor laws and regulations.