The Growth Coach Franchise Costs & Fees
Date of Incorporation: 2002
Franchising Since: 2003
Headquarters: Cincinnati, Ohio
Business Description: G.C. Franchising Systems, Inc. is the franchisor. A Growth Coach franchise provides business and sales coaching, executive coaching, business management, and consulting services to business owners, managers and executives, and self-employed professionals.
Franchise Offer: The franchisor offers franchises to operate a business under the name “The Growth Coach.” Franchisees will coach their clients to develop or enhance effective business and sales habits, management and organizational skills, business strategies, action plans, and sales techniques.
Financial Assistance: Stock Yards Bank & Trust Company (SYBTC) will finance up to $20,000 of the initial franchise fee for a Growth Coach franchise if it secures it with an equivalent amount on deposit in an account with SYBTC. The franchisor will secure the loan with SYBTC only if the franchisee meets its credit standards and satisfies the franchisor that after diligent efforts the franchisee has been unable to obtain financing from other sources. If franchisees finance the initial franchise fee with SYBTC, they must sign a promissory note for the amount borrowed. In rare circumstances, the franchisor may finance up to $20,000 of the initial franchise fee for one franchise, if it determined that the franchisee’s previous employment and business experience and other factors will make him/her an extraordinary Growth Coach franchisee, the franchisee meets the franchisor’s credit standards, and the franchisee satisfies the franchisor that after diligent efforts he/she has been unable to obtain financing through any sources, including SYBTC.
Training and Assistance: The franchisor will train up to 2 people to operate the franchise. All of the training is at the franchisor’s corporate headquarters in Cincinnati, Ohio. The initial training program is mandatory – the franchisee or the person designated as responsible for the general oversight and management of the franchised business, must complete the training program to the franchisor’s satisfaction, or it has the right to terminate the franchise. The franchisor may hold regional and/or national meetings with its support personnel and franchisees to discuss sales techniques, service procedures, personnel issues, and marketing methods, and to introduce new management tools, marketing programs, and promotional items. The franchisor does not presently require attendance at these meetings, but has the right to do so. Although not required to do so by the franchise agreement, the franchisor may, in its discretion, visit the franchisee’s office from time to time to provide additional operational support.
Territory: The franchisor will grant franchisees an exclusive protected territory that will consist of one or more contiguous Postal ZIP Code areas. The territory franchisees will receive for the base franchise fee will contain a maximum of 10,000 businesses as determined by MelissaData.com, an Internet-based data management and demographic information provider, or another comparable mapping system designated by the franchisor. If the number of businesses in the territory exceeds 10,000, franchisees must pay an additional $5,000 for all or part of every 1,000 businesses in excess of 10,000. The exclusivity of the territory does not extend to clients that the franchisor identifies as National Accounts. The exclusivity of a territory also does not extend to “shared referral sources” (such as bankers, attorneys, accountants, consulting firms, other business professionals, and similar organizations) that will be shared by all franchisees in a market.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If they wish to do so, and they satisfy the required pre-conditions to renew, the franchisor will offer franchisees the right to obtain 2 additional 10-year terms.
Obligations and Restrictions: The franchisor does not require that franchisees personally supervise the franchised business, although the franchisor recommends that they do so. The franchised business must be directly supervised by a manager who has been approved by the franchisor and has successfully completed the training program. Franchisees many use no other name for the franchise other than the name “The Growth Coach” without the franchisor’s prior written approval. Franchisees may not use the premises on which the franchised business is located for any purpose other than the operation of a Growth Coach franchise and the sale of authorized products and services without the franchisor’s express written permission (this restriction does not apply to franchisees operating the franchised business from their home).
Estimated Number of Units: 110
|Name of Fee||Low||High|
|Initial Franchise Fee||$42,900||$48,900|
|Furniture and Equipment||$500||$1,000|
|Travel & Living Expenses While Training||$750||$1,500|
|Initial Rent, Telephone, Bank and Other Deposits||$350||$2,000|
|Additional Funds – 6 months||$5,000||$18,000|
|Grand Opening Promotion||$1,000||$4,500|
|Lead Generation Program||$3,000||$3,000|
|Technology/Software Licensing Fee||$125||$125|
|Monthly Office Rental Payment||$0||$1,000|
|Type of Fee||Amount|
|Royalty Fee||10% of Gross Revenues; $750 monthly minimum for 18 months; $1,000 monthly minimum thereafter.|
|National Branding Fee||3% of Gross Revenues; $350/month minimum.|
|Local Cooperative Advertising||Up to 3% of Gross Revenues unless a majority of the cooperative members agree on a higher contribution.|
|Transfer Fee||The greater of either $10,000 or 3% of the purchase price, plus legal and administrative expenses.|
|Electronic Copies of Marketing Materials||Variable.|
|Technology/Software License Fee||$125 per month.|
|Right of First Refusal||$3,000|
|Franchisee Meetings||$250 per person.|
|Formation of Business Entity||Variable.|
|Late Fee||The greater of $50or 10% of past due amount.|
|Audit Fee||Cost of audit plus 18% interest on underpayment.|
The above information has been taken from the FDD of The Growth Coach. Year of FDD: 2016
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