Ownership • Income • Growth
Build recurring income.
Create lasting value.
Own a Medicare agency built for growth. Build client relationships, earn renewal income and grow the value of your business. Rooted provides centralized client-service support at no separate servicing fee, so you can focus on what comes next.
Your monthly take-home need updates the high end of the startup range. That budget includes two preopening months and the modeled shortfall until business cash supports your pay after the 30% tax set-aside. The low end excludes owner pay.
Startup range: $149,500 to $254,500. The low end excludes office costs and owner pay; the high end includes both. With the office and $5,000/month owner pay, modeled self-funding begins in production month 16, after the 30% tax set-aside.
Your first five years
New clients each year
- Year 1300
- Year 2450
- Year 3560
- Year 4580
- Year 5650
From Year 6 onward, this scenario holds at 650 new clients annually. All ramps are planning illustrations.
80% annual persistency • 3% annual expense growth • $5,000 monthly owner pay at the high end
Your growth in perspective
See what your investment could build.
See how your revenue can grow beyond the cost of building your agency. Explore the totals over time, or switch to a year-by-year view.
Each point adds all revenue and costs from opening through that year.
Historical Benchmark • Total through Year 15
Business expenses rise from $206,750 in Year 1 to $312,728 in Year 15 at 3% annual inflation. These are office-based expenses; temporary owner pay is included only at the high end of startup funding.
The chart totals commission revenue and office-based business costs, including opening expenses once. Owner distributions and sale proceeds are excluded from the lines. The return figure includes the assumed exit separately.
The value of time
Compare 5, 10 and 15 years.
Historical Benchmark. Startup ranges run from no office or owner pay to an office plus $5,000/month temporary owner pay. Revenue and returns use the office-based budget.
| Ownership period | Initial startup costs | Annual revenue at exit | Cumulative Return with Exit |
|---|---|---|---|
| 5 years | $149,500 to $254,500 | $866,488 | $2.44M to $2.98M |
| 10 years | $149,500 to $254,500 | $1,201,648 | $7.06M to $7.87M |
| 15 yearsSelected | $149,500 to $254,500 | $1,311,473 | $12.05M to $12.91M |
Each period assumes a sale at its endpoint. Returns are cumulative, before tax and personal withdrawals; sale value and future production are projections.
Startup budget & assumptions
The low end assumes no paid office or office setup and no funded owner income. The high end includes the office, setup and your selected temporary owner pay. If you need an office or income during startup, plan using the high end. Both budgets include the fee, licensing, advertising and other business costs through the modeled ramp-up. The owner is the full-time producer; hired-producer payroll requires a separate budget.
| Item | Low end | High end |
|---|---|---|
| One-time startup fee | $15,000 | $15,000 |
| Office deposit | $0 | $7,500 |
| Office furniture, equipment and signage | $0 | $15,000 |
| Initial licensing | $450 | $450 |
| Two months of preopening business overhead | $1,400 | $6,400 |
| Two months of preopening owner pay | $0 | $10,000 |
| Combined operating reserve | $132,650 | $200,150 |
| Total starting capital | $149,500 | $254,500 |
Two alternatives, one reserve in each. Each column adds to its own startup total. Its combined reserve uses the larger of nine months of that setup’s costs or its modeled cash shortfall; these are not added together. Owner pay is included only in the high-end reserve. The low end assumes suitable equipment is already available and personal living costs are funded separately.
Fixed planning assumptions: 80% annual persistency, 3% annual business-expense growth and a 30% tax set-aside for temporary owner support. Production labels describe planning scenarios; Average Production is not a measured franchisee average. Only the monthly owner-support amount is editable.
- Annual persistency is 80% at each renewal. Planning commission values are $700 per new client and $350 per renewing client; both stay constant.
- New clients by production year: Steady Production 150 / 188 / 225 / 263 / 300; Average Production 270 / 304 / 338 / 371 / 405; Historical Benchmark 300 / 450 / 560 / 580 / 650. Each scenario holds its Year 5 enrollment pace through Years 6 to 15. These counts include delayed retirees; they are not added again. Rooted reports 300 annual new clients; subsequent benchmark growth is projected.
- All three production scenarios retain the same advertising budget; lower enrollment does not automatically reduce expenses. The revenue, expense and return illustrations use the office-based budget, including a $10,000 to $15,000 office-setup allowance. Its starting annual operating costs are $168,000 for advertising; $30,000 for the office with bills; $2,400 for software; $6,000 miscellaneous; $350 E&O; with no ongoing owner salary included. Owner distributions are personal withdrawals from business earnings, not an additional operating cost.
- A fixed 3% annual inflation allowance increases recurring business expenses after Year 1. The owner-support target is a fixed startup take-home need. It is not a hired-producer salary; staffing must be budgeted separately.
- Each startup alternative has one combined reserve. The low end excludes office rent and owner pay; the high end includes both. Each reserve funds at least nine months of its own budget. A separate 15-year funding screen follows the full ramp-up, regardless of the ownership period selected. The larger modeled cash shortfall replaces the nine-month estimate when needed; it is not a second reserve added on top. That cash-shortfall estimate is rounded up to $1,000. The screening spreads each year's revenue and costs evenly by month and delays receipts three months. Before support is self-funded, the model sets aside 30% of positive monthly operating cash for taxes and funds any remaining take-home shortfall from reserves. This is a liquidity estimate, not a tax calculation. The startup range represents two different setups. The low end does not fund personal living costs or a paid office. Actual payment delays or slower enrollments can increase funding needs.
- The high end includes a $7,500 refundable deposit using three times the $2,500 office-with-bills budget as a proxy for rent. Actual lease terms can differ. Prepaid rent must be credited against rent already budgeted.
- Before production, both ends fund two months of software and miscellaneous business costs. The high end also funds two months of office costs and owner pay. Advertising begins when production starts. Owner support is a personal funding allowance, not an operating expense. After the first month when operating cash after the tax set-aside covers the target, startup support stops and the screening retains subsequent business cash. Later distributions, seasonal changes or renewed shortfalls can require more liquidity. Reserves and refundable deposits are not expensed twice.
- The assumed sale price excludes retained cash, pre-sale receivables and the deposit and assigns no transferred capital to the sale. The model assumes a debt-free sale with full proceeds realized; it excludes taxes, debt, earn-outs, seller financing and deferred payments. A loss-making exit year is assigned no earnings-based sale value in this illustration.
- Exit earnings deduct a separate replacement-producer allowance of $60,000 per year plus a 7.65% employment-cost allowance, increased by 3% annually. This planning assumption does not change with the owner's personal support target. Actual valuation requires compensation and earnings adjustments appropriate to the buyer. The 1.5 to 2.5 multiple and 5% sale-cost allowance are not transaction evidence.
- The assumed exit uses 1.5 to 2.5 times final-year earnings after the replacement-producer allowance, less 5% selling costs. A sale requires a qualified successor and Rooted approval. It transfers the local operating business and contractual Agency Economic Interest; the underlying Rooted book remains with Rooted. No buyer, sale price or buyback is guaranteed.
- Cumulative Return with Exit is the dollar amount of business net gain after operating and opening costs, plus net sale proceeds. It is before tax and personal withdrawals. It is not gross revenue, a percentage return or an annual figure. Owner distributions are already part of earnings and are not added again; contributed capital drawn for living costs is not profit. No renewal income is counted after the sale.
Built on Rooted’s operating experience. Our historical benchmarks represent real world results and over six years of R&D. Our top earners average 300 new clients in their first year and continue to grow over the next three to four years. All three ramps model potential future results.
These are planning illustrations using operating inputs supplied by Rooted and stated assumptions, not actual franchisee results or guaranteed returns. Enrollment, retention, staffing, commission terms, expenses, funding and transfer conditions can change outcomes materially.
Startup funding $149,500 to $254,500. Low end excludes office and owner pay; high end includes office and $5,000 monthly temporary owner pay. Historical Benchmark. Cumulative chart. 15 years. Cumulative revenue $14,648,109. Cumulative costs $3,877,175 to $3,882,175.