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ActionCoach Franchise Cost & Fees

Date of Incorporation: 1993
Franchising Since: 1997
U.S. Headquarters: Las Vegas, Nevada
Country of Origin: Australia

Business Description: ACNA is ActionCOACH North America, LLC, the U.S. franchisor of the ActionCOACH concept. Franchisees (also known as a Business Coach) operate a business that provides business coaching, mentoring and training to business owners in small to medium-sized business sector. The major offerings are business coaching, mentoring and training in sales, marketing and business management. The franchise business also markets a range of business building products designed to help Clients enhance their business knowledge and personal development. These services are offered through Business Coaches. Business Coaches are classified as either a Nominated Business Coach (NBC) or an Employee Business Coach (EBC). Business Coaches are not trained or authorized by the franchisor to offer legal or accounting advice to Clients.

Franchise Offer: There are four types of Business Coach franchises: (1) the Firm, (2) the Practice (Pro), (3) the Practice (5 Year), and (4) the Practice (Premium). The franchisee and the franchisor will determine which form of franchise may be granted to the franchisee based on the franchisor’s subjective assessment of the franchisee’s ability and desire to mentor a team of Business Coaches.

Financial Assistance: Neither the franchisor nor ACNA nor its affiliates offer any direct or indirect financing, nor do they guarantee any note, lease or obligation.

Training and Assistance: Mandatory franchisee training will take place in Las Vegas, unless ACNA designates another location. For Firm and Practice (5-Year and Premium) franchisees, the training program currently lasts 10 days. For Practice (Pro) franchisees and EBCs, the training program currently lasts 5 days. Except if franchisees have failed to meet Minimum Performance requirements, the franchisor offers, but does not require franchisees or any of their personnel and Business Coaches to attend additional or advanced training. Franchisees must attend ACNA's Annual Regional (North American) Conference. The franchisee may, but is not obligated to attend, ACNA's annual Global Conference.

Territory: For the firm franchises, the franchisee will be granted the right to operate the franchise from one specific location approved by the franchisor. For the firm franchises, the franchisee is granted a limited, exclusive territory referred to as the Designated Direct Marketing Area (DDMA). The DDMA is described by contiguous zip codes, postal codes and/or counties. After the franchisee is granted a Firm franchise, the franchisor will not grant a franchise nor license others to engage in any Direct Marketing to businesses within the DDMA. For the Practice franchises, the franchisee will be granted the right to operate the franchise from one specific location approved by the franchisor. Practice franchisees will be assigned a non-exclusive Designated Territory. Franchisees may face competition from other franchisees, from outlets that are owned by the franchisor, or from other channels of distribution or competitive brands that are owned by the franchisor. There are no circumstances under which the franchisor can modify the Designated Territory (Practice) or DDMA (Firm) without the franchisee’s written consent.

Term of Agreement and Renewal: The lengths of the franchise terms are: 5 years (Firm); 10 years (Practice – Pro); 5 years (Practice – 5-year); 8 years (Practice – Premium). Successive terms of equal length are available, if requirements are met.

Obligations and Restrictions: For both Firm and Practice franchises, only one person may be a Nominated Business Coach (NBC) at any given time. Ordinarily the franchisee must personally serve as the NBC throughout the franchise term. For a Firm franchisee, in addition to the NBC he or she must appoint an unlimited number of individuals to serve as EBCs as long as the individuals have (a) been approved by the franchisor and trained by ACNA and (b) have signed an Employee Business Coach agreement. For a Practice (Premium) franchise, in addition to the NBC he or she may appoint no more than two Employee Business Coaches under certain conditions. Franchisees may offer only the coaching services and related products that ACNA has approved for sale by Business Coaches in the U.S.A.

Estimated Number of Units: 1,000

Investment Tables:
Initial Investment For a Firm Franchise
Name of Fee Low High
Franchise Fee $275,000 $275,000
Franchisee Training Fee (per trainee) $25,000 $25,000
Travel to Initial Training (per trainee) $250 $1,000
Registration Fees/ Travel Expenses for Conferences (depending on timing of conferences) $0 $2,500
Technology Fee $1,250 $6,750
Computer, Telephone & Office Equipment $0 $25,000
Non-Coach Email Addresses $70 fee for setup per user
Marketing Materials & Inventory $1,000 $15,000
Insurance $1,000 $2,000
Additional Funds (for first 3 months of operation) $17,000 $78,000
Own Web Site (Optional) $0 $5,000
CRM (Optional) $0 $780
Rent $1,500 $22,500
Security Deposit $750 $7,500
FIRM Owner Training (Optional) $7,500 $7,500
ESTIMATED TOTAL $322,820 $476,850
Initial Investment For The Practice (Pro) Franchise
Name of Fee Low High
Franchise Fee $26,250 $26,250
Franchisee Training Fee $5,000 $5,000
Travel, Accomodation and meals during 5 day training $2,350 $3,700
Registration Fees/ Travel Expenses for Conferences (depending on timing of conferences) $0 $2,500
Computer, Telephone & Office Equipment $0 $4,000
Non-Coach Email Addresses $70 fee for setup per user
Marketing Materials & Inventory $1,000 $2,500
Insurance $1,000 $2,000
Additional Funds (for first 3 months of operation) $5,000 $11,000
Own Web Site (Optional) $0 $5,000
CRM (Optional) $114 $342
Rent $0 $3,000
Security Deposit $0 $750
ESTIMATED TOTAL $40,784 $66,112
Initial Investment For The Practice (5-year) Franchise
Name of Fee Low High
Franchise Fee $35,000 $35,000
Franchisee Training Fee $25,000 $25,000
Travel to Initial Training $250 $1,000
Registration Fees/ Travel Expenses for Conferences (depending on timing of conferences) $0 $2,500
Technology Fee $1,250 $1,250
Computer, Telephone & Office Equipment $0 $4,000
Non-Coach Email Addresses $70 fee for setup per user
Marketing Materials & Inventory $1,000 $2,500
Insurance $1,000 $2,000
Additional Funds (for first 3 months of operation) $5,000 $11,000
Own Web Site (Optional) $0 $5,000
CRM (Optional) $0 $660
Rent $0 $3,000
Security Deposit $0 $750
ESTIMATED TOTAL $68,570 $93,730
Initial Investment For The Practice (Premium) Franchise
Name of Fee Low High
Franchise Fee $50,000 $50,000
Franchisee Training Fee $25,000 $25,000
Travel to Initial Training $250 $1,000
Registration Fees/ Travel Expenses for Conferences (depending on timing of conferences) $0 $2,500
Technology Fee $1,250 $1,250
Computer, Telephone & Office Equipment $0 $4,000
Non-Coach Email Addresses $70 fee for setup per user
Marketing Materials & Inventory $1,000 $2,500
Insurance $1,000 $2,000
Additional Funds (for first 3 months of operation) $5,000 $11,000
Own Web Site (Optional) $0 $5,000
CRM (Optional) $0 $660
Rent $0 $3,000
Security Deposit $0 $750
ESTIMATED TOTAL $83,570 $108,730
Other Fees for the Firm Franchises
Type of Fee Amount
Royalty Fee $1,500 per month per Business Coach and EBC where Gross Revenue (GR) for the business is less than $132,999;
9% of GR $133,000 to $199,999;
8% of GR $200,000 to $319,999;
7% of GR $320,000 to $479,000;
6% of GR $480,000 to 679,000;
5% of GR $680,000 and above.
Marketing and Advertising Fee 5% of Gross Revenues during the preceding month.
Technology Fee At the franchisee’s option, $1,250 per Employee Business Coach recruited, or $6,750 lump sum for unlimited number of EBCs and an unlimited number of EBCs.
Renewal Fee $5,000
Transfer Fee $2,500
Relocation Fee $10,000
Termination Fee $10,000
Franchisee Training (before renewal) $25,000
Employee Business Coach Training $17,500 per trained EBC; subject to change by ACNA.
FIRM Owner Supplemental Training (optional) $7,500 to attend in person; zero to watch on-line.
Additional Training Up to $1,000 per day.
Key Personnel Training $12,500. Subject to increase (to equal 1/2 of the Franchisee Training Fee)
Mandatory Annual Conferences Approximately $2,500 per year for conference fees.
Interest Charges 1.5% per month or maximum legal rate.
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 paid by us or ACNA.
Liquidated Damages upon the franchisee's default Present value of Royalty Fee and Marketing and Advertising Fee stream for lesser of 2 years or remaining term, minus the franchisor’s expenses saved.
Liquidated Damages upon the franchisee’s breach of obligations relating to Marks or Confidential Information or breach of restrictive covenants $250,000 plus enforcement costs if the franchisor prevails in any legal action.
Enforcement Costs Actual costs.
Indemnification Costs Actual losses or expenses incurred by franchisor, ACNA and ACIP.
Amendment Fee Franchisor’s reasonable costs, estimated at $500 to $700
Other Fees for the Practice (Pro) Franchises
Type of Fee Amount
Royalty Fee 25% of preceding month's Gross Revenue (GR) or $2,100, whichever is higher.
Marketing and Advertising Fee 5% of Gross Revenues during the preceding month but not more than $500
Quaterly Administrative Fee $600
Renewal Fee $2,500
Transfer Fee $2,500
Relocation Fee $5,000
Franchisee Training (before renewal) $5,000
Additional Training Up to $1,000 per day.
Mandatory Annual Conferences Approximately $2,500 per year for conference fees.
Interest Charges 1.5% per month or maximum legal rate.
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 paid by us or ACNA.
Liquidated Damages upon the franchisee's default Present value of Royalty Fee and Marketing and Advertising Fee stream for lesser of 2 years or remaining term, minus the franchisor’s expenses saved.
Liquidated Damages upon the franchisee’s breach of obligations relating to Marks or Confidential Information or breach of restrictive covenants $250,000 plus enforcement costs if the franchisor prevails in any legal action.
Liquidated Damages for inaccurate reporting of Gross Revenue $50,000
Enforcement Costs Actual costs.
Indemnification Costs Actual losses or expenses incurred by franchisor, ACNA and ACIP.
Amendment Fee Franchisor’s reasonable costs, estimated at $500 to $700
Other Fees for the Practice (5-year) Franchises
Type of Fee Amount
Royalty Fee $1,800 if the preceding month's Gross Revenue (GR) for the Business is less than $15,000;
If GR is $15,000 up to $24,999.99 - $1,800 + 6.25% of GR in excess of $15,000;
If GR is $25,000 up to $34,999.999 - $2,425 + 4.75% of GR in excess of $25,000;
If GR is $35,000 up to $44,999.99 - $2,900 + 4.5% of GR in excess of $35,000;
If GR is $45,000 up to $59,999.999 - $3,325 + 4% of GR in excess of $45,000;
If GR is $60,000 up to $74,999.99 - $3,925 + 3.75% of GR in excess of $60,000;
If GR is $75,000 or more - $4,487 + 3.5% of GR in excess of $75,000.
Marketing and Advertising Fee 5% of Gross Revenues during the preceding month if GR is less than $15,000; $500 if GR is at least $15,000
Technology Fee $1,250
Renewal Fee $2,500
Transfer Fee $2,500
Relocation Fee $5,000
Termination Fee $10,000
Franchisee Training (before renewal) $25,000
Additional Training Up to $1,000 per day.
Key Personnel Training $12,500. Subject to increase (to equal 1/2 of the Franchisee Training Fee)
Mandatory Annual Conferences Approximately $2,500 per year for conference fees.
Interest Charges 1.5% per month or maximum legal rate.
Inspection and Audit Costs Actual cost of examination or audit by a Big-4 accounting firm, including travel expenses for the examiner or auditor.
Insurance Reimbursement Amount paid by us or ACNA.
Liquidated Damages upon the franchisee's default Present value of Royalty Fee and Marketing and Advertising Fee stream for lesser of 2 years or remaining term, minus the franchisor’s expenses saved.
Liquidated Damages upon the franchisee’s breach of obligations relating to Marks or Confidential Information or breach of restrictive covenants $250,000 plus enforcement costs if the franchisor prevails in any legal action.
Enforcement Costs Actual costs.
Indemnification Costs Actual losses or expenses incurred by franchisor, ACNA and ACIP.
Amendment Fee Franchisor’s reasonable costs, estimated at $500 to $700
Other Fees for the Practice (Premium) Franchises
Type of Fee Amount
Royalty Fee (a) $1,800 if the preceding month's Gross Revenue (GR) for the Business is less than $15,000;
If GR is $15,000 up to $24,999.99 - $1,800 + 6.25% of GR in excess of $15,000;
If GR is $25,000 up to $34,999.999 - $2,425 + 4.75% of GR in excess of $25,000;
If GR is $35,000 up to $44,999.99 - $2,900 + 4.5% of GR in excess of $35,000;
If GR is $45,000 up to $59,999.999 - $3,325 + 4% of GR in excess of $45,000;
If GR is $60,000 up to $74,999.99 - $3,925 + 3.75% of GR in excess of $60,000;
If GR is $75,000 or more - $4,487 + 3.5% of GR in excess of $75,000
AND
(b) $1,500 for each EBC (Employee Business Coach).
Marketing and Advertising Fee 5% of Gross Revenues during the preceding month if GR is less than $15,000; $500 if GR is at least $15,000
Renewal Fee $2,500
Transfer Fee $2,500
Relocation Fee $5,000
Termination Fee $10,000
Franchisee Training (before renewal) $25,000
Additional Training Up to $1,000 per day.
EBC Training Fee $17,500 for each of the franchisee’s EBCs.
Mandatory Annual Conferences Approximately $2,500 per year for conference fees.
Interest Charges 1.5% per month or maximum legal rate.
Inspection and Audit Costs Actual cost of examination or audit by a Big-4 accounting firm, including travel expenses for the examiner or auditor.
Insurance Reimbursement Amount paid by us or ACNA.
Liquidated Damages upon the franchisee's default Present value of Royalty Fee and Marketing and Advertising Fee stream for lesser of 2 years or remaining term, minus the franchisor’s expenses saved.
Liquidated Damages upon the franchisee’s breach of obligations relating to Marks or Confidential Information or breach of restrictive covenants $250,000 plus enforcement costs if the franchisor prevails in any legal action.
Enforcement Costs Actual costs.
Indemnification Costs Actual losses or expenses incurred by franchisor, ACNA and ACIP.
Amendment Fee Franchisor’s reasonable costs, estimated at $500 to $700

The above information has been taken from the FDD of ActionCoach. Year of FDD: 2015

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