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ActionCOACH Franchise ProfileConsultant & Business Brokers > Business Coaching |
What is the Initial Investment for an ActionCOACH Franchise?
To become an ActionCOACH franchisee, you will need to prepare for a total initial investment ranging from $131,055 to $562,495. This includes a franchise fee of $100,000, which is crucial for accessing the brand's resources and support. Additionally, you should have cash readily available between $131,055 and $307,495, along with a net worth of $300,000 to $500,000 to meet the financial requirements for approval.
What Are the Ongoing Fees for an ActionCOACH Franchise?
As an ActionCOACH franchisee, you will be subject to ongoing fees that include a royalty fee of 10% on your unit's revenue and a marketing fee of 5%. These fees are essential for maintaining brand presence and ensuring that you receive continuous support and resources from the corporate team. Understanding these ongoing costs is vital for managing your financial planning and profitability.
What Are the Revenue Expectations for an ActionCOACH Franchise?
The average annual revenue for an ActionCOACH franchise unit is approximately $207,413, with a median revenue of $222,473. This indicates a strong potential for profitability, especially considering the highest annual revenue reported at $1,466,096. However, it’s important to note that some units may generate as low as $96,293, so conducting thorough market research and having a solid business strategy is key to achieving success.
How Long Does It Take to Break Even with an ActionCOACH Franchise?
Franchisees can expect to reach their breakeven point within 12 months of operation, making it a relatively quick return on investment compared to many other franchises. The average investment payback period is about 42 months, which provides a clear timeline for when you might start seeing profits. This is an important factor to consider when evaluating the financial viability of your franchise journey.
ActionCOACH Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
ActionCOACH Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 123 | 140 | 142 |
| Net Change YoY | 17 | 2 | |
| Franchised Units | 121 | 138 | 140 |
| Net Change YoY | 17 | 2 | |
| Corporate Units | 2 | 2 | 2 |
| Net Change YoY | 0 | 0 |
Investment Overview
The ActionCOACH franchise offers a range of initial investment options, with costs ranging from $131,055 to $562,495. The initial franchise fee is set at $100,000, while ongoing royalty fees are 10% of gross sales and a marketing fee of 5% is also required. To qualify, prospective franchisees must have a net worth of $300,000 to $500,000 and cash reserves between $131,055 and $307,495.
Revenue Potential
Franchisees can expect significant revenue potential, with average annual revenue per unit reported at $207,413 and a median of $222,473. Revenue can vary widely, with the lowest unit generating $96,293 and the highest achieving $1,466,096. This variability highlights the importance of effective business strategies and local market conditions for maximizing profitability.
Financial Performance
The financial performance of ActionCOACH franchises shows a gross profit margin of 97.1%, with operating expenses accounting for 82% of revenue. EBITDA stands at 15.6%, indicating a healthy return on investment. Understanding these metrics is crucial for franchisees to manage their operations effectively and optimize their financial outcomes.
Breakeven and Payback
New franchisees can anticipate a breakeven period of approximately 12 months, with a payback on their investment expected within 42 months. This timeline provides a clear framework for potential franchisees to evaluate the financial viability of their investment and plan their cash flow accordingly.
Franchise Growth
The ActionCOACH franchise has shown steady growth, expanding from 121 franchised units in 2021 to 140 in 2023. This growth trajectory indicates a strong brand presence and increasing demand for its services, making it an attractive opportunity for aspiring entrepreneurs looking to enter the franchise market.
Corporate Structure
ActionCOACH operates with a combination of franchised and corporate units, maintaining two company-owned locations consistently since 2021. This structure allows for a balance between franchisee independence and corporate support, ensuring that franchisees benefit from the brand's established reputation and resources while retaining operational flexibility.
Frequently Asked Questions
The initial investment for an ActionCOACH franchise ranges from $131,055 to $562,495. This includes the franchise fee, startup costs, and other necessary expenses.