The initial cost of buying an ActionCOACH franchise
When making any business decision, we understand it's important for you to consider all the costs involved as well as the potential return. We’re going to walk you through the costs of becoming an ActionCOACH franchise partner including factors that can fluctuate the cost involved and also how quickly you will see a return.
Let's get straight into it, no matter which franchise you look at there will be a ‘buying in’ cost. This varies between different franchises, but you can expect to pay anywhere between £10K-£100K for the opportunity. While this may seem like a hefty price tag, there are varying returns that you will get, and this should help you determine the price point you are willing to pay.
The initial investment for an ActionCOACH business coaching franchise in the UK is £69k. This secures you a ‘territory’ made up of 10,000 businesses you can work with. As you will only work with the businesses in your territory, there is no internal competition for work, and this helps to foster an incredibly supportive community.
Ongoing costs of owning an ActionCOACH Franchise
In addition to the £69,000 initial investment, we also recommend you come into the business with around £30,000 working capital. As with any franchise business, there is an ongoing royalty, the royalty doesn't start until month seven and the royalty pays for your ongoing support, training and use of the IP and systems.
The ActionCOACH royalty is £1,950 + VAT or 10% of bankings, whichever is the greater. To put your return into perspective one weekly coaching client will typically pay you £2,000 a month. The only other ongoing investment is an investment of 5% of your revenues, capped at £500 per month, which goes into a marketing fund.
What you'll get in return
There are certain rewards you’ll get when signing up to the ActionCOACH franchise, these include...
The security of not having to go it alone and setting up your own coaching system.
Ongoing world-class training and support from a dedicated franchise support team.
Guaranteed earnings of at least £10,000 a month within your first 6 months.
Access to a global community of coaches and strategic partners helping you to succeed.
A well-established, proven recession and pandemic-proof business model.
The opportunity to build a business with a substantial asset value, creating a lasting legacy for you and your family and community.
Frequently Asked Questions
How much royalty will I need to pay?
What is the ActionCOACH Marketing Fund?
A portion of your revenues, amounting to 5% and capped at £500 per month, is allocated to a dynamic marketing fund. This fund is designed to provide ongoing support from a team of dedicated professionals. Within this team, you will have access to a skilled marketing director, a proficient video editor, a creative motion graphic designer, and a knowledgeable digital executive. Additionally, we invest in third-party companies that specialize in PR and marketing, ensuring comprehensive support for your business.
Moreover, we have a talented videographer named James, who is ready to capture your success stories with clients. Whenever you have a noteworthy achievement, James will spend a day filming exceptional content that showcases your triumphs.
How much working capital will I need?
In addition to the initial £69K, we also recommend that you come into the business with around £30K working capital.
I can't afford this franchise, are there other options for me?
Yes, there are multiple routes into franchising. These alternative routes we offer will still get you to a point in which you can own your own franchise, it may just take a little longer as you build your profits and are able to invest more.
Talk a look at our article 3 ways to get into franchising to explore all options available to you.
Will I need to invest anything during the discovery phase?
No, the discovery process is solely dedicated to fostering a genuine connection between us and getting acquainted with one another. It is a time for us to truly understand your needs and for you to gain a deeper understanding of our coaching system.
During this stage, the only investment required from you is your valuable time. We believe that by investing this time, we can establish a solid foundation built on trust and open communication, setting the stage for a successful partnership.
When will I see a return on my investment?
Firstly, we guarantee that if you follow our UK sales process and get yourself in front of a set amount of qualified prospects a month for your first 6 months, you will bank more than £10,000 gross monthly income within your first 7 months of training with us.
You'll also see in your business plan a goal of achieving £1M income from your franchise business.
At this point, if you're interested in the franchise opportunity, we'd recommend you speak with one of our advisors and attend a discovery day where you'll get into the details. You'll see the tools and the systems, you'll get to hear more about the return on investment, the training, the support and also get to hear from existing franchise owners as well.
Are there funding options to raise capital?
Most major banks look favourably at franchise opportunities when it comes to providing funding for purchase and for working capital. In some instances, they may lend up to 75% of what you need, including your working capital, but expect to receive around 70%.
In a typical scenario, you would need a £30K contribution and the banks would lend you £70K to get started. This will also need to cover VAT payments, but ultimately this will be refunded in your first year of trading.
Build Your Franchise with Confidence
At ActionCOACH, we understand it's essential that you achieve real results for you and your business. That's why we guarantee, in writing, if we award you an ActionCOACH licence, if you invest sufficient time and money to get yourself in front of 6 - 10 qualified prospects a month for your first 6 months and complete every step of our proven UK sales process with each of those prospects, you will achieve a £10,000 - £14,000 gross monthly income within your first 7 months of training with us or we will refund you your franchise fee. Speak to one of our team for the full details.