SelectQuote Inc. (NYSE:SLQT) has unveiled SelectQuote Local, a new franchise initiative designed to enable local representatives to offer the company’s senior health and life insurance products within defined regional markets.
The insurance distribution company said the program is intended to complement its established phone-based sales model by giving customers the option to work directly with representatives in their communities while still benefiting from SelectQuote’s online insurance comparison platform.
Under the new structure, franchise owners will acquire the rights to operate SelectQuote Local locations in designated geographic territories. These franchises will rely on SelectQuote’s marketing technology, customer support infrastructure, and network of insurance carriers to provide products and services at the local level.
“We see SelectQuote Local as a natural extension of our existing SelectQuote business,” said Bill Grant, the company’s Chief Operating Officer. “We believe SelectQuote Local creates an opportunity to extend our reach to more consumers, namely those who wish to do business with someone in their local market.”
Chief Financial Officer Ryan Clement said the franchise approach involves limited capital requirements for the company and is expected to generate recurring royalty revenue over time. He also noted that SelectQuote’s pharmacy and healthcare services segment anticipates producing operating cash flow during the current fiscal year.
The company recently obtained a $415 million credit facility. SelectQuote operates across three primary segments: SelectQuote Senior, which focuses on Medicare plans; SelectQuote Healthcare Services, including the SelectRx Pharmacy; and SelectQuote Life.
Founded in 1985, SelectQuote provides consumers with insurance comparison services across multiple carriers and offers additional support through pharmacy and virtual healthcare services.