FDD Talk Daily: Annual Gross Revenue Data of Certain ActionCOACH Franchisees

Highlights of ActionCOACH’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

• The franchisee (also known as a Business Coach) will operate a business that provides business coaching, mentoring, and training to business owners in the small and medium-sized business sector.

• There are 4 different franchise models you may select from: the “FIRM”, the “PRACTICE (5 Year)”, the “PRACTICE (7 Year)”, and the “PRACTICE (Premium)”.

• The estimated total investment necessary to begin operation of an ActionCOACH business coaching franchise ranges from approximately:

• $330,250 to $473,530 for the FIRM,
• $68,570 to $97,730 for a PRACTICE (5 Year) Business Coach franchise, and
• $83,570 to $112,730 for a PRACTICE (7 Year) and (Premium) Business Coach franchise.

• These figures include the following fees that must be paid to the master licensee, franchisor, or an affiliate:

• $301,250 for the FIRM,
• $61,250 for a PRACTICE (5 Year),
• $76,250 for a PRACTICE (7 Year),
• $75,000 for a PRACTICE (Premium) Business Coach Franchise Agreement, for initial franchise fees, training fees, and technology fees.

Preliminary Notes on Sample Size

• These results are based on information from 44 franchisees out of 227 franchisees (19%).

• The franchisor first chose a group of 133 franchisees out of the 227 (58%) franchisees, (i) who have been a Business Coach franchisee for 12 months or more; (ii) who have reported in the ActionMembers Key Performance Indicator (KPI) system (which is voluntary for some franchisees) for a full 12 months; and (iii) who are operating the business on a full-time basis.

• The franchisor then further reduced that group of 133 franchisees to a subset of 44 franchisees who had reported using at least four of the franchisor’s programs to generate gross revenue.

• None of the franchises is company-owned.

• These results are based on unaudited and unverified sales reports using the ActionMembers online KPI system.

Section 1 – Unaudited Statement of Average Gross Revenues of 44 ActionCOACH Franchisees for the Twelve Months Ending June 30, 2011

• The results below are a historic representation prepared by the franchisor of the average monthly and annual gross revenues of 44 ActionCOACH franchisees for the company’s fiscal year that began July 1, 2010 and ended June 30, 2011.

Tagged as: ActionCOACH