Brightway Insurance vs State Farm Insurance
Brightway Insurance vs State Farm Insurance: Brightway Insurance costs $23K to $137K to open; State Farm Insurance costs $50K to $422K. Brightway Insurance has 341 units, State Farm Insurance has 120. SBA loan history: Brightway Insurance = 11 loans (18.2% default); State Farm Insurance = 74 loans (2.7% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Brightway Insurance vs State Farm Insurance: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Brightway Insurance requires the lower minimum capital commitment ($23K vs $50K for State Farm Insurance), a 53% spread. Initial franchise fees come in at $35K for Brightway Insurance versus $50K for State Farm Insurance, Brightway Insurance has the lower entry fee.
System Scale & Tenure
On scale, Brightway Insurance operates 341 units to State Farm Insurance's 120, roughly 3× the system size.
SBA Lending Profile
State Farm Insurance has the deeper SBA lending track record, with 74 7(a) approvals compared with 11 for Brightway Insurance. Brightway Insurance's peak SBA year was 2016 (7 loans); State Farm Insurance's peak was 2016 (25 loans). State Farm Insurance's more recent peak generally indicates fresher lender appetite. Brightway Insurance has the most SBA funded units in FL, with 4. State Farm Insurance leads in TX, with 14. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Brightway Insurance deals is $138K vs $215K for State Farm Insurance, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 18.2% for Brightway Insurance and 2.7% for State Farm Insurance, State Farm Insurance has the cleaner SBA loss record by 15.5 points. PeerSense FPI scores come in at 27 (Fair) for Brightway Insurance and 48 (Fair) for State Farm Insurance, giving State Farm Insurance the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 27/100 | 48/100 |
Health Tier | Limited | Fair |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 11 | 74 |
SBA Volume | – | – |
Default Rate | 18.2% | 2.7% |
Peer Tier | growing | established |
Investment & Costs
Total Investment | $23K to $137K | $50K to $422K |
Franchise Fee | $35K | $50K |
Royalty Rate | 6% | N/A |
Ad Fund | 3% | N/A |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Not Disclosed |
System Size & Operations
Total Units | 341 | 120 |
Franchised Units | 338 | 120 |
Company Owned | 3 | – |
Term Length | 5 yrs | N/A |
Brand Information
Year Founded | N/A | 1922 |
Franchising Since | 2008 | N/A |
Years Franchising | 18 yrs | N/A |
Headquarters | FL | Auburn, CA |
Category | Insurance Agencies | Insurance Agencies |
Website | ||
FDD Year | 2026 | N/A |
Which Is Better, Brightway Insurance or State Farm Insurance?
Lower upfront capital required
Tie
Brightway Insurance: $23K starting · State Farm Insurance: $50K starting
More SBA lender confidence
State Farm Insurance
Brightway Insurance: 11 SBA loans · State Farm Insurance: 74 SBA loans
Lower SBA default rate
State Farm Insurance
Brightway Insurance: 18.2% · State Farm Insurance: 2.7%
Larger system & brand presence
Tie
Brightway Insurance: 341 units · State Farm Insurance: 120 units
More lender financing options
State Farm Insurance
Brightway Insurance: 4 unique lenders · State Farm Insurance: 48 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
Need Funding for Brightway Insurance or State Farm Insurance?
PeerSense connects you with 500+ SBA lenders and capital sources. Our referral fee is established upfront and paid at closing.
SBA Lenders & Capital Sources
Retainers or Consulting Fees
10% Down Franchise Loans
About These Franchises
Brightway Insurance vs State Farm Insurance: Franchise Funding Comparison
Comparing Brightway Insurance and State Farm Insurance is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $23K to $422K.
Brightway Insurance has 11 SBA loans on record and State Farm Insurance has 74. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Brightway Insurance vs State Farm Insurance, Frequently Asked Questions
Which is a better franchise investment, Brightway Insurance or State Farm Insurance?
How much does a Brightway Insurance franchise cost compared to State Farm Insurance?
Can I finance Brightway Insurance or State Farm Insurance with an SBA loan?
Which has a lower SBA default rate, Brightway Insurance or State Farm Insurance?
Talk to PeerSense
Tell us which brand and your budget. We source capital from lenders who have already funded deals in these systems.
Franchise / SBA 7(a): The desk will reach out. No obligation.
Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman