How does an SCA Appraisal Services franchise operate after opening?
Under the May 26, 2026 FDD, the franchisee runs a primarily home-office vehicle damage appraisal business for insurance companies. Assignments move through SCA’s CORE platform, field inspection and estimating tools, client-specific Cycle Times, file delivery, centralized billing for National Accounts, and continuing quality and reporting controls.
SCA Franchising Corporation licenses a Service Area and the SCA Appraisal Services System. The franchisee supplies appraisal labor, supervision, field travel, customer contact and complete file handling; the franchisor, supported by SCA Enterprises, Inc., supplies National Account access, CORE workflow, standards, billing support and oversight; designated providers supply required software and equipment.
What does the franchisee sell, and who buys the work?
The Appraisal Business sells vehicle property damage appraisal and related field services primarily to national and local insurance companies. The vehicle owner, claimant, insured, repair facility or salvage yard may participate in inspection and communication, but the insurance carrier or other account ordinarily initiates and pays for the assignment.
The 2026 FDD requires every service incorporated into the SCA Appraisal Services Business and lets SCA Franchising Corporation change service methods. The official passenger vehicle services page identifies appraisal, photo-only, pre-underwriting, investigation and reinspection work. The specialty services page covers trucks, trailers, recreational vehicles, motorcycles, boats and heavy equipment.
The franchise is an appraisal operation, not the separate adjusting operation described on the brand website. SCA Adjusting Services Inc. provides professional adjusting services and does not currently franchise. Additional or specialized services may also be subject to a Service Certification Program, extra equipment, training, licensing or other qualification requirements before a franchisee may perform them.
- National Accounts
- SCA arranges carrier relationships, sets assignment pricing and standards, and offers work when the franchisee accepts the Cycle Time.
- Local accounts
- The franchisee may solicit local insurance accounts, subject to Service Area, channel, System Standards and advertising rules.
- Claim participants
- Vehicle owners, insureds, claimants and repair facilities supply access and claim information but are not interchangeable with the paying Customer or National Account.
FDD basis: 2026 FDD Items 1 and 16, pp. 1–2 and 28; Franchise Agreement Section 2, pp. A-7–A-8.
How does a vehicle appraisal file move through the franchise?
A carrier or local Customer assignment moves through acceptance, contact, inspection, estimating, review, delivery and billing. The franchisee owns the file from initial write-up through delivery, while National Account procedures can alter communication, invoicing, reporting and Cycle Time requirements.
Assignment and acceptance
- Actor
- SCA dispatch, National Account and franchisee.
- Action
- CORE receives and routes the assignment; the franchisee accepts work it can complete to the required Cycle Time.
- System/asset
- CORE, email, carrier integration and Service Area rules.
- Output
- Accepted file with account instructions, location and deadline.
Contact and scheduling
- Actor
- Designated Appraiser or authorized employee.
- Action
- Confirms vehicle condition and location, contacts the owner or facility, schedules access and updates the customer file daily.
- System/asset
- CORE, telephone, business email and the consumer claim-status portal.
- Output
- Inspection appointment and current assignment status.
Field inspection
- Actor
- Qualified appraiser employed by the Appraisal Business.
- Action
- Inspects damage, measures and documents the vehicle, captures required photographs and follows account-specific safety and appearance standards.
- System/asset
- Vehicle, smartphone, Core Mobile, photo arrows, tape measure and tire-depth gauge.
- Output
- Inspection evidence uploaded by midnight on the inspection date.
Estimate and file assembly
- Actor
- Designated Appraiser or trained appraisal employee.
- Action
- Writes the estimate, applies client rules, prepares photographs and supporting documentation, and communicates through the designated National Account Rep.
- System/asset
- Required collision-estimating software; the official site identifies CCCOne estimating.
- Output
- Completed appraisal package ready for review or delivery.
Quality control and revisions
- Actor
- Franchisee; SCA quality or support personnel when applicable.
- Action
- Resolves supplements, corrections and account questions. SCA may audit, reassign or temporarily assist without assuming file responsibility.
- System/asset
- CORE records, Operations Manual, account standards and audit controls.
- Output
- Approved or corrected file that meets System Standards.
Delivery, billing and reporting
- Actor
- Franchisee, SCA billing and the Customer.
- Action
- Delivers the appraisal. SCA invoices and uses commercially reasonable collection efforts for National Accounts; the franchisee maintains books, financial reports and weekly Gross Revenues reporting.
- System/asset
- CORE finance functions, QuickBooks and required records.
- Output
- Closed file, collected account or receivable, and auditable operating record.
Sources: 2026 FDD Items 6, 8 and 11, pp. 4–7 and 9–22; Franchise Agreement Sections 6(c)–(e) and 7(b), pp. A-12–A-17; official SCA technology overview.
Can the franchise be manager-run, and who performs the work?
The 2026 FDD permits the Operating Principal to delegate day-to-day work to an approved Designated Appraiser, but it does not describe an absentee model. The Operating Principal must personally supervise the Appraisal Business, devote necessary time and best efforts, retain responsibility, and own a controlling majority interest when the franchisee is a business entity.
The Operating Principal must hold at least 51% of the economic, equity and voting interest. At least one full-time qualified Designated Appraiser must run daily operations and oversee and conduct services. One person may fill both roles; an individual franchisee must do so. Both require franchisor approval and completed training.
Functions the unit must staff
- Assignment acceptance, customer contact and daily file updates.
- Licensed or otherwise qualified field inspection and estimating.
- Corrections, supplements, documentation and client communication.
- Local marketing, employee supervision, licensing and payroll compliance.
- Books, records, insurance evidence and operating reports.
Staffing boundaries
- Additional appraisers and personnel remain a franchisee decision.
- Employees must be competent, trained and licensed when law requires.
- Core and Core Mobile users must be registered, authorized and background-checked.
- Independent contractors or subcontractors require prior written consent for each instance.
- Temporary corporate file assistance is capped at the greater of 30 days or 30 files per calendar year.
FDD basis: Disclosure Document Item 15, pp. 26–28; Franchise Agreement Section 7(b), pp. A-15–A-17.
Which technology, equipment and suppliers are mandatory?
The operating model depends on franchisor-controlled workflow technology, designated estimating software, standard office hardware and specified field tools. SCA Franchising Corporation can change software, vendors, specifications and upgrade requirements, while the franchisee buys, licenses, secures and maintains the Information System and field assets.
| Operating input | Classification | Operational function | Decision holder |
|---|---|---|---|
| CORE and Core Mobile | Required proprietary access | Dispatch, file status, data, delivery, invoicing and reporting. | Franchisor controls access, rules, data retrieval and upgrades. |
| Collision-estimating software | Required designated software | Estimate preparation under carrier and locality rules. | Franchisor designates the program or approved vendor. |
| NADA Vehicle Value Subscription | Required specification | Vehicle value reference used in appraisal work. | Franchisee may use a supplier meeting written specifications. |
| Neon Photo Arrows, Keson Tape Measurer, Tire Depth Gauge | Required field tools | Consistent photographic and physical damage documentation. | Franchisee selects a compliant supplier. |
| Computer, printer, smartphone, internet, Microsoft Office and QuickBooks | Required Information System | Communications, records, accounting, photographs and platform access. | Franchisee purchases and maintains compliant components. |
The FDD reports no inventory minimum and no purchasing cooperative. An alternative supplier may be proposed in writing, with approval generally taking three to six weeks. The current insurance program is optional, but SCA may make it mandatory or designate an insurance broker. SCA Franchising Corporation may revoke supplier approval, administer software payments or require replacement technology. The franchisee remains responsible for security, continuity, user controls and upgrades.
SCA can independently retrieve appraisal, financial, insurance, employee, invoicing, correspondence and other Information System records without a contractual access limit. The franchisee must maintain the headquarters connection, restrict CORE access and implement later security or user rules.
FDD basis: Disclosure Document Items 8 and 11, pp. 9–12 and 15–19; Franchise Agreement Section 6(d), pp. A-12–A-13.
What does the franchisee control, and what remains centralized?
The franchisee controls local execution and employment within a detailed framework. SCA Franchising Corporation controls the licensed System, National Account terms, Cycle Times, required services, software, brand standards, quality review and data access. Insurance carriers and technology providers add account-specific dependencies.
Franchisee
- Accepts and completes appraisal assignments.
- Schedules inspections and manages each file.
- Hires, pays, trains and supervises personnel.
- Obtains licenses, insurance and compliant equipment.
Franchisor and affiliate
- License Marks, System Standards and Operations Manual.
- Provide CORE and National Account opportunities.
- Set carrier pricing, Cycle Times and file procedures.
- Invoice and collect National Account receivables.
- Inspect, audit, require correction or reassign files.
Third parties
- Insurance companies issue assignments and service rules.
- Software vendors provide estimating licenses.
- Regulators determine appraiser or adjuster licensing.
Official context: SCA’s operations and franchise-support roles; contractual basis: 2026 FDD Items 8, 11 and 15, pp. 9–28, and Franchise Agreement Sections 6 and 7, pp. A-10–A-21.
Does the Service Area protect customers or online assignments?
No. The Service Area defines the franchisee’s primary responsibility, not an exclusive or protected territory. The franchisor can serve the area, use affiliates or third parties, authorize another SCA Network member, and use internet, mobile or other alternative distribution channels without granting the franchisee general exclusivity.
A National Account or online assignment in the Service Area is offered at SCA’s price only if the franchisee accepts the Cycle Time. If it declines, misses the deadline or performs unsatisfactorily, SCA may assign the file elsewhere without compensation and stop later offers. The franchisor may expand the Service Area by up to 50 miles with 30 days’ notice.
The franchisee may solicit unassigned geography, but work in another SCA Service Area requires written Regional Director authorization. It may not use alternative distribution channels to solicit or fulfill orders. Woodland Capital Franchising, Inc. operates the Doan Group system; Doan franchisees may solicit within an SCA Service Area, and files may be transferred between systems. Current offered markets appear on the official franchise locations page.
The franchisee must devote at least 10 hours monthly to local marketing; SCA may raise this to 20 hours and request logs. Local advertising needs approval but is deemed approved after 10 business days without a response. The FDD reports no brand fund or advertising cooperative.
FDD basis: Disclosure Document Items 11 and 12, pp. 17–24; Franchise Agreement Sections 3 and 7(e), pp. A-8–A-9 and A-19–A-20.
What does Item 20 show about the operating network?
Item 20 reports no company-owned SCA Appraisal Services outlets during 2023–2025. Year-end franchised outlets were 87, 88 and 82, so the operating network depends on franchisees rather than franchisor-operated appraisal units.
Source: 2026 SCA Franchise Disclosure Document, Item 20, Table 1, p. 45. Values reconcile to the reported total because every operating outlet in the table is franchised.
Item 20 Table 3 records one opening, one termination, one non-renewal and five franchisor reacquisitions in 2025. Table 4 still reports zero company-owned outlets, so the reacquisitions were not five continuing corporate operations. The FDD projected three franchised openings and no signed-but-not-open agreements as of March 31, 2026.
Which decisions remain with the franchisee, and what should a buyer verify?
The franchisee chooses staffing above required roles, local work organization, compliant suppliers, local account development and whether to accept offered assignments. Those choices remain bounded by the Operations Manual, National Account rules, approved technology, Service Area restrictions, reporting duties and audit rights.
- File routing: verify how National Account assignments are allocated, declined, reassigned and restored after a Cycle Time or quality failure.
- Service scope: identify which appraisal, specialty, virtual or Certification Program services apply in the proposed Service Area.
- Staffing: confirm whether the Operating Principal will also be the full-time Designated Appraiser and how absences are covered.
- Technology: obtain current estimating licenses, CORE user rules, hardware specifications, data-access terms and replacement schedules.
- Local demand: determine which Customers, referral sources and unassigned neighboring areas may be solicited.
- Quality: review Cycle Times, CCC audit criteria, Elite Program rules, complaint handling and reassignment triggers.
- Customer and revenue mechanism
- Insurance companies send vehicle appraisal assignments; completed files generate service fees, with SCA commonly invoicing and collecting National Account receivables.
- Primary franchisee responsibility
- Manage every appraisal file from acceptance and inspection through estimate delivery, correction, reporting and compliant recordkeeping.
- Strongest control
- SCA Franchising Corporation can change System Standards, Cycle Times, required services, software and specifications, audit performance and reassign deficient work.
- Key distinction
- The Service Area is a non-exclusive area of primary responsibility, and National Account and alternative-channel assignments remain centrally controlled.
- Largest undisclosed question
- The FDD does not quantify expected assignment volume, local-account mix, staffing load or the current frequency of supplements and quality-control interventions for a proposed Service Area.
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