SelectQuote Inc. (NYSE: SLQT) announced the launch of SelectQuote Local, a franchise model that will allow local representatives to sell the company's senior health and life insurance products in specific geographic regions.

The insurance distributor said the new initiative will complement its existing telephone-based distribution model by offering consumers the option to meet with local representatives while maintaining access to the company's insurance shopping platform.

Franchise owners will purchase rights to operate SelectQuote Local franchises in particular geographic areas. The model will utilize SelectQuote's marketing technology, customer service capabilities, and carrier relationships to deliver insurance products locally.

"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 model requires low capital investment from the company and is expected to create a recurring royalty stream over time. He noted that SelectQuote's pharmacy and healthcare services business is projecting operating cash flow for the current fiscal year.

The company recently secured a $415 million credit facility. SelectQuote operates three business lines: SelectQuote Senior for Medicare plans, SelectQuote Healthcare Services including SelectRx Pharmacy, and SelectQuote Life.

Founded in 1985, SelectQuote provides insurance comparisons from multiple carriers and serves consumers across insurance, pharmacy, and virtual care services.