Goosehead Insurance vs State Farm Insurance
Goosehead Insurance vs State Farm Insurance: Goosehead Insurance costs $66K to $109K to open; State Farm Insurance costs $50K to $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, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Goosehead 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
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 7(a) approvals compared with 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 have 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 SBA loss record 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 to $109K | $50K to $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
Tie
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 SBA default rate
Goosehead Insurance
Goosehead Insurance: 2.1% · State Farm Insurance: 2.7%
Larger system & brand presence
Tie
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.
Goosehead Insurance has 48 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.
Goosehead Insurance vs State Farm Insurance, Frequently Asked Questions
Which is a better franchise investment, Goosehead Insurance or State Farm Insurance?
How much does a Goosehead Insurance franchise cost compared to State Farm Insurance?
Can I finance Goosehead Insurance or State Farm Insurance with an SBA loan?
Which has a lower SBA default rate, Goosehead Insurance or State Farm Insurance?
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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; it does not lend, fund, or approve loans, and 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