Fiesta Auto Insurance to Expand Franchise Model

January 21, 2010

Huntington Beach, Calif.-based Fiesta Auto Insurance is combining its two business models — insurance and tax preparation — under one roof, quadrupling its presence to more than 80 locations during the past 10 months.

Fiesta, an insurance and tax preparation services franchise, says the expansion provides multiple revenue streams that will serve the needs of millions of consumers in America.

“We are opening the door for investors to remain profitable year round because of the wide range of insurance and tax services we provide,” said John Rost, founder and CEO of Fiesta Auto Insurance. “By merging insurance and tax preparation services, our franchise owners gain a tremendous competitive advantage, allowing them to connect with their customers multiple times throughout the year and build personal relationships with everyone who walks through the door.”

Launched in 1999 to meet the growing demand for auto insurance within underserved Hispanic and blue-collar communities in Southern California, Fiesta Auto Insurance is pushing an aggressive franchise growth plan. Rost says Fiesta will call for more than 1,500 locations to open throughout the next five years nationwide. Target markets include Texas, Illinois, New York, Pennsylvania, Arizona, Florida and Michigan.

The franchise opportunity is available to investors who want to start a new business, or for those existing independent operators who are interested in converting to Fiesta Auto Insurance. Rost says the franchise can provide lower operating costs with more access to nationwide carriers as well as name brand recognition and a proven business model. Fiesta Auto Insurance franchisees benefit from favorable carrier relationships and higher commissions, Rost claims.

“Since we started the business 10 years ago, we have established ourselves as a trustworthy, neighborhood business,” Rost said. “Fiesta Auto Insurance is meeting the growing demand for affordable, high-quality insurance and tax preparation services in rapidly expanding communities across the nation.”

Beyond auto insurance, Fiesta offers insurance services for watercrafts, motorcycles, homeowners, rentals, condos, apartments, tenant occupied property, commercial auto, commercial property, commercial general liability, Mexico insurance and special event coverage.

In 2006, Rost made the strategic decision to begin franchising Fiesta Auto Insurance. Current company forecasts include 250 locations to be opened by the end of 2010.

To become a Fiesta operator costs an initial investment of a $10,000 franchise fee and total suggested capital ranging between $30,000 and $50,000. Area developer agreements are also available.

Fiesta offers a paperless operating environment as well and provides support tools for its franchisees, including marketing, ongoing training and financial reporting.

“Fiesta Auto Insurance provides a great service at a great value, giving us a solid foundation for a recession-resistant business model,” said Rost. “We support our franchisees by handling much of the back office work, allowing our owners and their staff to focus more on building relationships and selling to customers.”

Source: Fiesta Auto Insurance,,,

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