In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for an ActionCOACH franchise, based on Item 7 of the company’s 2024 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for an ActionCOACH franchise, based on Items 5 and 6 of the company’s 2024 FDD
Section III – Number of franchised and company-owned ActionCOACH outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD
Section IV – News updates on the ActionCOACH franchise opportunity
Can’t attend live? Don’t worry – we’ll send all registrants a recording of the webinar the very next day.
Section V – Presentation and analysis of ActionCOACH’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- 2023 average, median, highest, and lowest annual collected revenues for the 26 ActionCOACH franchise outlets located in the entire GoBIG Region that had operated as a franchisee for a consecutive 12-month period for the fiscal year ending December 31, 2023 (the “Benchmark Outlets”)
- 2023 collected revenues for each of the 26 individual Benchmark Outlets for the fiscal year ending December 31, 2023
- 2023 average, median, highest, and lowest annual gross revenues, 1-to-1 sales, and sales of other products for the 124 ActionCOACH franchise outlets that operated for all 12 months of the year ended December 31, 2023
Section VI – Key ratios, comparables, computations, and analyses for the ActionCOACH franchise opportunity (exclusive content for Platinum subscribers)
Section I – ActionCOACH Franchise Costs
- Franchise Fee: $75,000
- Franchisee Training Fee: $25,000 to $28,500
- Travel to Franchisee Training: $500 to $2,500 per trainee
- EBC Training Fee: $0 to $5,000
- Registration for Mandatory Annual Regional Conference: $0 to $1,199
- Travel Expenses for Mandatory Annual Regional Conference: $0 to $3,500
- Monthly Technology Fee: $405 to $810
- 8. Computer, Telephone, and Office Equipment: $0 to $4,000
- CRM: $0 to $1,080
- Non-Coach Email Addresses: $0 to $256
- Marketing Materials and Inventory: $1,000 to $5,000
- Insurance: $1,000 to $2,000
- Additional Funds (for first 3 months of operation): $15,000 to $30,00
- Own Web Site (optional and only if approved by ActionCOACH): $0 to $5,000
- Rent: $3,000 to $7,500
- Security Deposit: $1,000 to $2,500
- Grand Opening Launch Event: $0 to $7,500
- Salaries and Wages: $0 to $90,000
- Marketing Spend: $3,000 to $30,000
- Minimum Royalty and Marketing & Advertising Fees: $6,150
- Total Estimated ActionCOACH Franchise Costs (1 Designated Direct Marketing Area or DDMA): $131,055 to $307,495
Section II – ActionCOACH’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Franchise Fee for the FIRM – Investor Level Team Builder Franchise: $75,000
- Royalty Fee: the monthly Royalty Fee is 10% of the Minimum Performance Requirement or 10% of Gross Revenues in the preceding month, whichever is higher but in no case less than $1,950
- Marketing and Advertising Fee: 5% of your Gross Revenues during the preceding month; $100 minimum and cap of $3,000 per month
Section III – Number of Franchised and Company-Owned ActionCOACH Outlets
Franchised
2021
- Outlets at the Start of the Year: 121
- Outlets at the End of the Year: 138
- Net Change: +17
2022
- Outlets at the Start of the Year: 138
- Outlets at the End of the Year: 140
- Net Change: +2
2023
- Outlets at the Start of the Year: 140
- Outlets at the End of the Year: 145
- Net Change: +5
Company-Owned
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 2
- Net Change: +2
2022
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
2023
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
Section IV – News Updates on the ActionCOACH Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the ActionCOACH Franchise (Item 19, 2024 FDD)
- All data in this Item 19 was based on unaudited data reported to ActionCOACH directly by its franchisees for each of their outlets in the ActionCOACH Key Performance Indicator system. The reporting of this data is on a voluntary basis. All dollar amounts are in U.S. dollars.
A. GoBIG Region – All Affiliate Territories of Master Licensee (Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin)
Part 1 – Unaudited Average Collected Revenues for the GoBIG Region
- Part 1 is a historical representation of the unaudited average and median annual Collected Revenues (as defined below) self-reported by each of the 26 franchised outlets located in the entire GoBIG Region that had operated as a franchisee for a consecutive 12-month period for the fiscal year ending December 31, 2023 (the “Benchmark Outlets”). These criteria were chosen to present historical data that covered 1 full year of an outlet’s operations.
- All franchise outlets in the Region for the reported periods are Firm and Practice franchises (Practice, Practice Premium).
- Median Annual Collected Revenues: $222,473
- Average Annual Collected Revenues: $290,855
- Percentage of Benchmark Outlets That Reached or Exceeded Average: 38%
- Number of Benchmark Outlets That Reached or Exceeded Average: 10
- Highest Annual Collected Revenues: $864,208
- Lowest Annual Collected Revenues: $291,572
Part 2 – Unaudited Gross Revenues of the 26 Benchmark Outlets in the Entire GoBIG Region
- Part 2 is a historical representation of the unaudited Collected Revenues of each of the individual Benchmark Outlets for the fiscal year ending December 31, 2022 which were self-reported by the franchisees.
Collected Revenues
- Outlet #1 (A): $864,208
- Outlet #2: $703,275
- Outlet #3 (A,B): $668,260
- Outlet #4 (A): $618,552
- Outlet #5 (A): $592,039
- Outlet #6: $586,020
- Outlet #7: $547,682
- Outlet #8: $397,934
- Outlet #9 (B): $304,299
- Outlet #10 (A): $291,572
- Outlet #11: $276,029
- Outlet #12: $255,643
- Outlet #13: $253,130
- Outlet #14: $191,816
- Outlet #15: $146,117
- Outlet #16: $135,891
- Outlet #17: $118,145
- Outlet #18 (C): $111,501
- Outlet #19 (A): $107,362
- Outlet #20: $83,738
- Outlet #21: $83,275
- Outlet #22: $69,930
- Outlet #23: $60,195
- Outlet #24 (D): $48,940
- Outlet #25: $45,000
- Outlet #26: $1,687
- A: This outlet had more than one Business Coach for at least part of the year.
- B: These outlets are owned by the same entity.
- C: The owner of this outlet also owns and operates an outlet in a different Territory outside the GoBIG Region where the owner of the outlet resides.
- D: The owner of this outlet also owns and operates an outlet in a different Territory outside the GoBIG Region where the owner of the outlet resides.
- ActionCOACH’S affiliate, Buji Business, LLC (Buji Business), operates a company-owned outlet that provides the same, or substantially similar, products and services to its Clients as you will provide. The Collected Revenues of Buji Business are not included in the tables above. Buji Business had Collected Revenues of $305,056 during ActionCOACH’S 2023 fiscal year. Buji Business’ Collected Revenues exceeded the average Gross Revenues of the 17 Benchmark Outlets described in Part 1 above.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.
- “Collected Revenues” means the total receipts derived by each outlet from services performed and products sold by or in connection with the Business. Any property or services received from Clients in exchange for Coaching Services by each outlet will be included in Collected Revenues at their fair market value at the time received. Collected Revenues do not include sales taxes or credits such as the sale price of any products returned by Clients or other taxes that an outlet collects from Clients and pay directly to the appropriate governmental authorities.
- Some of the outlets may be working either together formally or informally to derive the results above and may have received additional marketing or sales assistance from ActionCOACH.
B. Systemwide Information – United States
- Parts 3 through 5 are historical representations of the unaudited average and median Gross Revenues, 1-on-1 Sales, and Sales of other products as reported by 124 franchise outlets that operated for all 12 months of the year ended December 31, 2023 or 85% of the total 149 franchise outlets operating as of December 31, 2023.
Part 3 – Gross Revenues
- Average Annual Gross Revenues: $207,413
- Average Monthly Gross Revenues: $17,284
- Number of Franchisees That Reached or Exceeded Average: 44
- Percentage of Franchisees That Reached or Exceeded Average: 35%
- Highest Annual Gross Revenues: $1,466,096
- Lowest Annual Gross Revenues: $215,806
- Median Annual Gross Revenues: $122,731
Part 4 – 1-to-1 Sales
- Average Annual 1-to-1 Sales: $159,920
- Average Monthly 1-to-1 Sales: $13,327
- Number of Franchisees That Reached or Exceeded Average: 44
- Percentage of Franchisees That Reached or Exceeded Average: 34%
- Highest Annual 1-to-1 Sales: $1,022,000
- Lowest Annual 1-to-1 Sales: $175,925
- Median Annual 1-to-1 Sales: $96,293
Part 5 – Sales of Other Products
- Average Annual Sales of Other Products: $40,395
- Average Monthly Sales of Other Products: $4,258
- Number of Franchisees That Reached or Exceeded Average: 35
- Percentage of Franchisees That Reached or Exceeded Average: 28%
- Highest Annual Sales of Other Products: $581,691
- Lowest Annual Sales of Other Products: $56,650
- Median Annual Sales of Other Products: $20,500
- “Gross Revenues” means the total receipts derived by each outlet from services performed and products sold by or in connection with the Business. Any property or services received from Clients in exchange for Coaching Services by each outlet will be included in Gross Revenues at their fair market value at the time received. Gross Revenues also include any proceeds an outlet may receive from business interruption insurance. Gross Revenues do not include sales taxes or credits such as the sale price of any products returned by Clients or other taxes that an outlet collects from Clients and pays directly to the appropriate governmental authorities.
- “1-to-1 Sales” means sales of the following business coaching programs: StartUP, StepUP, PowerUP, FreedomCOACH, and UltimateCOACH.
- “Other Products” means all products or programs other than the 1-on-1 business coaching programs.
- Some of the outlets may be working either together formally or informally to derive the results above and may have received additional marketing or sales assistance from their respective master licensees.
- The financial performance representation figures do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.
- A new franchisee’s financial results may differ from the results stated in this financial performance representation.
- Historical results are not an indicator of future performance. The gross revenue figures stated in this Item 19 should not be considered as the actual or potential gross revenue figures that will be realized by any prospective franchisee.
- ActionCOACH offers substantially the same coaching programs for delivery to clients to all franchisees.
- Although ActionCOACH may suggest prices for coaching programs offered by franchisees, franchisees may offer and sell coaching programs and services at any price it chooses.
Section VI – ActionCOACH Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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