What's really going on with Brooke Corp?

[Cash]

Agents and brokers- I have been hearing some interesting stuff regarding the Brooke Corporation. Recently dubbed the 22nd largest agency in the US. On the yahoo message boards under finance and their symbol bxxx, there is some very interesting reading. I would recommend any person thinking about buying or selling an agency involving these guys do some reading before signing on the dotted line. The one message that is repeated over and over is that the new franchisee's aren't getting full and timely payments on earned commssions nor the support that is promised at the time of the sale. Has anyone else heard this? Or maybe know someone who is dealing with this type of situation. I see their ads in every insurance magazine so I am sure there should be plenty of people with info on this subject. Help others in the industry out by sharing what you have learned both positive and negative.

[mhutch69]

You can ascertain my opinion from my topic line of the Brooke Corp. They NEED to continue to buy agencies in order to be able to sell agencies PLUS their BAP Buyers Assistance Plan which typcially exceeds the annual commissions of the agency. Therefore, the buyer is paying twice what Brooke paid or more for an agency. Brooke pays the seller over 3 year or more and then is paid by their finance arm for 100% of the purchase price paid by the buyer.

Follow that? In other words, they are scamming people. Speak to any buyer of a franchise and you will not talk to a happy individual. Many have just plain "walked away" from the business. Brooke's quarterly reports classify these as "company owned stores". But, in truth, they are defaults on the loans. If Brooke does not sell them again, it would be a problem.

Brooke provides nothing to the independent agent except financing. Even then, their terms suck due to the original purchase price including a BAP fee.

Whatever they promise, they fail to deliever assuming you can not litigate with them as long as they can... Makes sense. Makes even more sense to stay the hell away from them.

Anonymous due to being afraid of their lawyers

[Cash]

Hutch, thanks for the reply. Looks like over 800 people have read this post and you are the only reply. I don't think Brooke is broke but I am puzzled at why they wouldn't pay up the amounts that they clearly owe. We both know the game can't be continued for long when they play like this. The SEC or maybe a class action suit by it's franchisees will likely be the death of Brooke. Of course, this is only my opinion.

[miinsguy]

Cash,

We do not reply for several reasons.
1) We are in the insurance business.
2) We do not want to be sued for slander.
3) We are busy selling insurance.

If you are a franchisee, I suggest you speak with your attorney about any disputes you have with the company.

Caveat Emptor
MI INS GUY

[herbrick]

As a former Brooke Corporation agent/agency I can say: The original Colorado management team had things running well. The Colorado and National management team changed. After management changes things went from bad to worse for me. None of the Brooke agents I have known and met have had a lasting positive relationship with Brooke.

[badger]

are they still charging 135,000 to the buyer, please advise

[Cash]

$135k and/or more depending on the agency. I have heard that the fee is going to increase to $165k soon.

[Cash]

Cash,

We do not reply for several reasons.
1) We are in the insurance business.
2) We do not want to be sued for slander.
3) We are busy selling insurance.

If you are a franchisee, I suggest you speak with your attorney about any disputes you have with the company.

Caveat Emptor
MI INS GUY

***I saw this post and said "why did you reply then" I am sure you are in the insurance business. Nobody is looking to get sued, just trying to get some info. Not asking anybody to slander Brooke or any other company for that matter. Must have been a slow day as you had time to read my post and reply to it. Scaring the franchisee's with the big brother is going get you so you should speak to your attorney is what keeps problems from being solved. Of course this is just my opinion and I could be wrong. I think that is your phone ringing!