ActionCoach Franchise Cost, Profit & Failure Rate 2024

Would you like to help businesses with your experience but want to avoid taking the risk of being a freelancer? ActionCoach is one of the best business coaching firms in the world that offers franchising. They might be an excellent choice for those interested in business coaching and who want to take on the challenge.

ActionCoach Franchise

When you work with ActionCoach, you buy their experience, as well as their client base. In this article, we will talk about ActionCoach, its franchise system, fees, expected revenue, and all other details of its franchise system.


About ActionCoach And ActionCoach History

ActionCoach is a business coaching firm founded in 1993 focusing on both short-term and long-term assistance and training to businesses.

They offer affordable and effective mentoring rather than the expensive and traditional consulting firms, which is where they differentiate themselves. The company possesses an experience pool of over 25 years that they gained through group coaching and one-on-one coaching programs.

They started franchising in 1997 and quickly grew, becoming the world’s number one business coaching franchise firm. They have operations in over 70 countries and work with more than 18,000 businesses worldwide to deliver support.

ActionCoach offers a low-cost franchise opportunity and helps franchisees learn everything about business coaching from day one.


Franchise Model Table

Cost Or FeesAmount
Initial Investment      $139,951-$368,522
FranchiseYES
Franchising Since1997
Franchise-Fee$75,000
Royalty-Fee10%
Liquidity$50,000-$100,000
Estimated Outlets1,000+

How Much Does It Cost To Open An ActionCoach Franchise?

The total average cost to open one ActionCoach franchise varies between $139,951 and $368,522. This includes all the startup costs, from payroll and equipment to training and other similar things. The expected average cost is the cost determined by ActionCoach by taking different things into account, such as how much other franchisees have spent and the current costs of those items.

However, depending on several factors, your costs might be outside of this range, too. This is just an average to give you an idea.


Franchise Requirements

Your professional background experience is not industry-relevant. You should be able to provide a track record of success in any industry. The ideal ActionCoach franchisee must be people-facing and able to help people learn and succeed.

On the financial side, you must possess a net worth of at least $100,000 and a liquidity of between $50,000 and $100,000 minimum. These are a must by ActionCoach that you must possess.


Profit & Revenue Of ActionCoach

ActionCoach’s last financial reports are from the year ended in 2020. Their company revenue for the fiscal year 2020 was $769,818. However, when all expenses were removed, the company didn’t make any net profit. They had a net loss of $105,650.

According to the individual franchise’s annual revenue, we can calculate the net profit earned by the franchise.

This is how it can be calculate:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%192928.00
Rent10.63%(20498.60)
Insurance5.31%(10249.30)
Salaries21.25%(40997.20)
Franchise Royalty Fees5.31%(10249.30)
Utilities2.13%(4099.72)
Cost of Goods Sold (COGS)26.56%(51246.50)
Labor (Variable)13.81%(26648.18)
Total (Expenses)85.00%(163988.80)
Net Profit15.00%28939.20

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Overall Sales

According to ActionCoach’s franchise disclosure document, the average overall annual sales for an ActionCoach franchise store was $177,581 in 2020. Around 35% of franchised outlets reached or exceeded this average number. The highest-earning store made $1 million.


Failure Rate of ActionCoach

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201895-4
2019594
202097-2

For the Franchised outlets:

  • In 2018, the failure rate was (4)/9×100≈44.4%
  • In 2019, the growth rate was (4)/5×100≈80%
  • In 2020, the failure rate was (2)/9×100≈22.2%

According to the above-mentioned data, we can see that the franchised outlets for Urban Air grew in 2019, showing a growth rate of 80%. In the years 2018 and 2020, the franchie showed a failure rate of 44.4% and 22.2% respectively.


ActionCoach Payback Period

With a investment of $368,522 and an estimated 15% profit on the average revenue, the yearly profit would be $28,939.20.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $368,522 / $28,939.20= 12.73 years

Based on these figures, it will take approximately 13 years to pay back the initial investment for ActionCoach. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Training and Support Of ActionCoach

The initial training program for franchisees is 10 days of live in-person classroom training and a 3-month on-the-job training that teaches you about business coaching. This mandatory initial training takes place in Vegas unless ActionCoach designates another location.

There is also a mandatory training program for the store’s employee coaches that takes approximately 5 days. There is also an annual mandatory regional conference that provides additional training.

In terms of support, the franchisee receives over 70 days of support from the day the ActionCoach franchise store starts operating. They also give you hands-on support to help you get your first clients. ActionCoach’s own coaches also give one-to-one coaching to the franchised store’s coaches.


Terms of Agreement and Renewal

The initial length of the franchise agreement is 15 years. There might be a renewal possibility if the franchisee meets the requirements and the franchisor approves the request. The renewal period is for another 15 years.


Obligations and Restrictions

There must be an assigned managing director business coach to oversee the operations of the franchised outlet. This managing director business coach is the franchisee unless someone else approved by the franchisor is designated. This managing director business coach is the director of the coaches employed in that franchise.

The franchised outlet is restricted to only selling the coaching services and related products that the franchisor has approved beforehand. You cannot offer any kind of service or products that the franchisor does not approve.

In addition, the coaches are not allowed to give any kind of legal advice, account services, or other kinds of professional services that need a license. Also, the franchisees must be able to meet a quota set by the franchisor after the first 12 months as a performance requirement.


ActionCoach: Financial Assistance

ActionCoach does not provide direct or indirect financial assistance to its franchisee network. They do not guarantee any kind of note, lease, or financial obligation of the franchisee. The franchisee must find the necessary funding by themselves.


ActionCoach Comparison

NameFranchise FeeRoyalty FeeInitial Investment
The Growth Coach$27,90015%$42,000-$63,900
FocalPoint Business Coaching$45,000$1,500/mo$78,000-$132,100
ActionCoach$75,00010%$139,951-$368,522

Conclusion

ActionCoach is one of the leading business coaching franchises in the world, with operations in over 70 countries and serving 18,000 businesses. They have a low-cost entry point and an extensive training program to help you learn the business. The company also supports you in the first 3 months of your operation and helps you get your first clients.

All things considered, ActionCoach is a terrific business coaching franchise with great opportunities to make good money as an entrepreneur. If the industry is on your radar, you should consider starting an ActionCoach franchise.


FAQs

Is ActionCoach a franchise?

Yes, and ActionCoach is actively the most successful coaching franchise in the world, according to the brand itself.

Who is the owner of ActionCoach?

Brad Sugars started the ActionCoach brand. It was formerly known as Action International but later changed to ActionCoach.

What does ActionCoach do?

ActionCoach focuses on delivering business value by showing business owners how to build better teams, manage their time more effectively, and manage revenue growth.

How many locations does ActionCoach has?

ActionCoach is a business coaching firm with more than 1,000 offices in 80 countries.

Where is the headqaurters of ActionCoach?

The headquarters of ActionCoach is located in Las Vegas. Its compelete corporate address is 5781 S Fort Apache Road, Las Vegas, Nevada 89148 USA.

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