Goosehead Insurance vs State Farm Insurance
Goosehead Insurance vs State Farm Insurance: Goosehead Insurance costs $66K–$109K to open; State Farm Insurance costs $50K–$422K. Goosehead Insurance has 1,115 units, State Farm Insurance has 120. SBA loan history: Goosehead Insurance = 48 loans (2.1% default); State Farm Insurance = 74 loans (2.7% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet, see the comparison below.
Goosehead Insurance vs State Farm Insurance: Capital, Scale & Lending Analysis
Data-driven differentiation pulled from 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
State Farm Insurance requires the lower minimum capital commitment ($50K vs $66K for Goosehead Insurance), a 32% spread. Initial franchise fees come in at $50K for Goosehead Insurance versus $50K for State Farm Insurance.
System Scale & Tenure
On scale, Goosehead Insurance operates 1,115 units to State Farm Insurance's 120, roughly 9× the system size. State Farm Insurance has been operating 104 years (founded 1922) versus 23 for Goosehead Insurance (founded 2003), a 81-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
State Farm Insurance has the deeper SBA lending track record with 74 historical 7(a) approvals versus 48 for Goosehead Insurance. Goosehead Insurance's peak SBA year was 2025 (11 loans); State Farm Insurance's peak was 2016 (25 loans). Goosehead Insurance's more recent peak generally indicates fresher lender appetite. Both systems concentrate the most SBA-funded units in TX. Borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Goosehead Insurance deals is $250K vs $215K for State Farm Insurance, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 2.1% for Goosehead Insurance and 2.7% for State Farm Insurance, Goosehead Insurance has the cleaner historical loss profile by 0.6 points. PeerSense FPI scores come in at 66 (Strong) for Goosehead Insurance and 48 (Fair) for State Farm Insurance, giving Goosehead Insurance the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 66/100 | 48/100 |
Health Tier | Strong | Fair |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 48 | 74 |
SBA Volume | – | – |
Default Rate | 2.1% | 2.7% |
Peer Tier | established | established |
Investment & Costs
Total Investment | $66K – $109K | $50K – $422K |
Franchise Fee | $50K | $50K |
Royalty Rate | 20% | N/A |
Ad Fund | 2% | 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 | 1,115 | 120 |
Franchised Units | 1,103 | 120 |
Company-Owned | 12 | – |
Term Length | 10 yrs | N/A |
Brand Information
Year Founded | 2003 | 1922 |
Franchising Since | 2011 | N/A |
Years Franchising | 15 yrs | N/A |
Headquarters | BRYAN, TX | Auburn, CA |
Category | Insurance Agencies | Insurance Agencies |
Website | ||
FDD Year | 2026 | N/A |
Which Is Better, Goosehead Insurance or State Farm Insurance?
Lower upfront capital required
State Farm Insurance
Goosehead Insurance: $66K starting · State Farm Insurance: $50K starting
More SBA lender confidence
State Farm Insurance
Goosehead Insurance: 48 SBA loans · State Farm Insurance: 74 SBA loans
Lower historical default rate
Goosehead Insurance
Goosehead Insurance: 2.1% · State Farm Insurance: 2.7%
Larger system & brand presence
Goosehead Insurance
Goosehead Insurance: 1,115 units · State Farm Insurance: 120 units
More lender financing options
State Farm Insurance
Goosehead Insurance: 31 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.
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About These Franchises
Goosehead Insurance vs State Farm Insurance: Franchise Funding Comparison
Comparing Goosehead 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 $50K to $422K.
Both brands have active SBA lending histories, Goosehead Insurance with 48 SBA loans and State Farm Insurance with 74. This means proven lender acceptance and established underwriting paths for franchise buyers.
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.
Goosehead Insurance vs State Farm Insurance, Frequently Asked Questions
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