Franchising Since: 1997
U.S. Headquarters: Las Vegas, Nevada
Country of Origin: Australia
Estimated Number of Units: N/A
Franchise Description: ActionCOACH North America, LLC (ACNA) is the U.S. franchisor of the ActionCOACH concept. The franchisor offers franchises through master licensees (also known as subfranchisors) for designated regions. Master licensees are the franchise sellers who subfranchise and support individual ActionCOACH business coaches in their respective territories. Master licensees may also conduct limited coaching, mentoring or training activities within their territories. The ActionCOACH business coach franchise (referred to as the “Partner” franchise) provides a range of services to established business owners, executives and their teams. The major offerings are business and executive coaching, mentoring, strategic planning and a variety of training programs. If the master licensee awards franchisees an ActionCOACH franchise, they may choose to sign a “Firm” addendum if they meet certain qualifications, allowing them to expand their business by hiring or contracting up to four additional business coaches to serve clients under their franchise.
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Territory Granted: The territory is defined as the entire state in which the franchisee’s principal office is located. The territory is non-exclusive, meaning that other franchisees may operate within the same geographic area, and the master licensee reserves the right to do the same. Franchisees may choose to operate your ActionCOACH franchise from a home-based office or from a commercial office space within the territory. If franchisees elect to establish a commercial office, the location must be approved by the master licensee.
Obligations and Restrictions: Franchisees will participate personally in the direct operation of their business unless they appoint a managing director business coach (MDC). Franchisees will serve as their only business coach unless they appoint an MDC or sign a Firm addendum and hire or retain additional business coaches. If a corporation, limited liability company, or other legal entity purchases the franchise, franchisees as the owner of the entity must personally guarantee its obligations to the master licensee. Unless approved in writing by the master licensee, franchisees may offer only the coaching and training services and related products authorized for sale by business coaches in the region of the master licensee, consistent with the standards and system licensed from ActionCOACH North America, LLC. If franchisees receive a request from a prospective client outside their territory, they must refer them to their master licensee or to the master licensee for that territory. If no other business coach has been licensed in that area, the franchisee may be authorized to serve that client.
Term of Agreement and Renewal: The length of the initial franchise term is seven years. Successive terms of seven years are available, if requirements are met.
Financial Assistance: Neither the franchisor nor its affiliates offer any direct or indirect financing to franchisees. The franchisor will not guarantee any note, lease or obligation franchisees may make to others. The franchisor participates in the VetFran program and offers a maximum of $5,000 discount on franchise fees per eligible military veteran.
Estimated Initial Investment
Name of Fee | Low | High |
Franchise Fee | $45,000 | $45,000 |
Franchisee Training Fee | $15,000 | $15,000 |
Travel to Franchisee Training (per trainee) | $500 | $2,500 |
Initial Marketing Fee | $2,500 | $2,500 |
Registration for ACNA’s Annual National Conference (for registration) | $0 | $1,500 |
Monthly Technology Fee | $0 | $405 |
Computer, Telephone & Office Equipment | $0 | $2,000 |
CRM | $0 | $399 |
Non-Coach Email Addresses | $0 | $256 |
Opening Marketing Materials & Supplies | $0 | $2,500 |
Insurance | $1,000 | $2,000 |
Rent | $0 | $1,500 |
Security Deposit | $0 | $1,500 |
Grand Opening Launch Event | $0 | $7,500 |
Salaries and Wages | $0 | $30,000 |
Additional Funds (for first 3 months of operation) | $0 | $25,000 |
ESTIMATED TOTAL | $64,000 | $139,259 |
Other Fees
Type of Fee | Amount |
Royalty Fee | 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 gross revenues during the preceding month. $100 minimum and cap of $1,000 per month. |
Monthly Technology Fee | $135 per month per business coach. |
Renewal Fee | $5,000 |
Transfer Fee | $10,000 |
Relocation Fee | $10,000 |
Additional Business Coach Seat | $7,500 per seat. |
Additional Business Coach Training | $5,000 per business coach, subject to change by ACNA. |
Master Licensee Launch Support | $2,500 per business coach; optional. |
Additional Training | Up to $1,000 per day. |
Annual ACNA National Conferences | Registration between $749 to $1,500 per person. |
GoBIG Regional Conference | Registration between $250 and $750 per person. |
Optional ActionCOACH Email Account Fee | $256 per year per key personnel. |
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 the master licensee or ACNA. |
Early Termination Fee | See FDD. |
Liquidated Damages Upon the Franchisee’s Default | Present value of royalty fee and marketing and advertising fee stream for lesser of two 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 master licensee prevails in any legal action. |
Enforcement Costs | Actual costs. |
Indemnification Costs | Actual losses or expenses incurred by the master licensee, ACNA and ACIP. |
Amendment Fee | The master licensee’s reasonable costs, estimated at $500 to $700. |
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