ActionCOACH
Date of Incorporation: 1998
Franchising Since: 1999
U.S. Headquarters: Las Vegas, Nevada
Country of Origin: Australia
Description: Through Master Licensees and Business Coaches, the franchisor provides business coaching, mentoring and training programs and services to business owners in the small to medium-size business sector. The franchisor offered Master Licenses and direct Business Coach franchises using the "Action International" trademark the U.S.A. from August 1999 until December 2006, at which time the franchisor ceased licensing the "Action International" trademark in most states. Since January 2007, the franchisor offers Master Licenses and direct Business Coach franchises using the "ActionCoach" trademark.
Franchise Offer: ActionCOACH USA offer franchisees the opportunity to become Business Coaches, who provide a number of services to owners of small and medium-sized businesses The major offerings are coaching, mentoring and training in sales, marketing and business management. Business Coaches also market a range of business-building products designed to help Clients enhance their business knowledge and personal development. The "Practice" Business Coach Franchise is $50,000. The Practice is a business coaching business which runs as a single unit operation.
Financial Assistance: The franchisor does not offer any direct or indirect financing, nor do they guarantee any note, lease or obligation.
Training and Assistance: Training will take place at a hotel in Las Vegas. The training program currently lasts 10 days. Satisfactory completion of the training program is mandatory. If the franchisee fails to complete the training program, the franchisor may terminate the Business Coach Agreement. The franchisee will also attend a mandatory refresher training program approximately 90 days after completion of the induction training.
Territory: The franchisor will define a territory for the franchisee in the Franchise Agreement, but the territory is not exclusive. The franchisee may have franchised and/or will franchise other Business Coaches in the territory, and the franchisees may compete for Clients anywhere in the territory. The Franchise Agreement does not impose a maximum number of franchises that can be awarded in the Territory.
Term of Agreement and Renewal: The term of franchise is 7 years with the option to renew for successive terms of 7 years each. There is a renewal fee of $2,500.
Obligations and Restrictions: The personal relationship between business coach and Client is critical. For that reason, only one person may be the Nominated Business Coach at any given time. The franchisee must personally serve as the Nominated Business Coach for the first year of operation, unless the franchisor agrees to shorten this period. Thereafter, the franchisee may appoint another individual to serve as Nominated Business Coach, if that individual: has been approved by the franchisor and trained by the franchisor. The franchisee may offer only the coaching services and related products that the franchisor has approved for sale by Business Coaches in the U.S.A.
Total Number of Units: Approximately 1,100 units
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Franchise fee | $50,000 | $50,000 |
| Training fee | $25,000 per trainee | $25,000 per trainee |
| Travel to induction training | $250 | $750 |
| Travel to refresher training | $250 | $1,000 |
| Registration fees/Travel expenses for Conferences | $0 | $2,500 |
| Technology Fee | $1,250 | $1,250 |
| Computer, telephone and Office equipment | $0 | $4,000 |
| Non-Coach E-mail Addresses | $70 | $70 |
| Marketing Materials and Inventory | $1,000 | $2,500 |
| Insurance note | $1,000 | $2,000 |
| Additional Funds (for the first 3 months of the operation) | $5,000 | $7,000 |
| Own Web Site | $0 | $5,000 |
| Total | $83,820 | $101,570 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | $1,800 per month per coach |
| Marketing and Advertising fee | 5% of the gross revenues during the preceding month |
| Technology fee | $1,250 |
| ActionCoach Products | Invoice price, plus reasonable shipping |
| Advertising and promotional materials | The actual costs plus 10% |
| Renewal fee | $2,500 |
| Transfer | $2,500 |
| Termination fee | $10,000 |
| Training | $25,000 |
| Mandatory Conferences | Approximately $3,000 per year |
| Inspection and Audit costs | Actual cost of examination or audit by a Big-4 accounting firm, including travel expenses for the examiner or auditor |
| Management Fee | Reasonable amount , not to exceed $5,000 |
| Insurance reimbursement | Amount expended by the franchisor |
| Liquidated damages | Present value of Royalty fee and Marketing and Advertising fee stream for lesser of two years or remaining term, minus the franchisors expenses saved |
| Enforcement Costs | Amount expended by the franchisor |
| Indemnification Costs | Actual losses or expenses incurred by the franchisor |
| Amendment fee | The franchisor’s reasonable cost |
| Relocation fee | $5,000 |
Date FDD: 2008
The above information has been taken from the UFOC/FDD and online sources of Action Coach.
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