ActiveCOACH Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
For a FIRM Franchise
1. Franchise Fee: $74,500
2. Franchisee Training Fee: $28,500
- You will pay 1 training fee for you (or your Nominated Business Coach or NBC) and 1 Key Personnel’s attendance at initial training held on the same dates.
3. Travel to Franchisee Training: $500 to $2,500 per trainee
- All transportation costs to and from Las Vegas are your responsibility. However, lodging, meals, and transfers to and from hotel to the training venue during training are included in the training fee. Any incidental costs incurred during any of the training sessions are your responsibility.
- The estimates are for travel by 2 trainees only and assume that training will be held in Las Vegas, Nevada.
4. EBC/Key Personnel Training Fee: $0 to $5,000
- The high range of the estimate for the Employee Business Coach (EBC) training fee assumes that you will appoint, and ActionCOACH will train, 1 EBC during the first 3 months of your FIRM’s operations.
5. Travel to EBC Training: $0 to $2,500
- The estimated travel costs for the EBC training is also for 1 trainee only.
6. Travel Expenses for Mandatory Annual Regional Conference: $0 to $3,500
- At least once a year, ActionCOACH organizes regional conferences and every year you are required to attend at least 1 of these regional conferences.
7. Conference and Technology Fee: $0 to $890
- You must pay ActionCOACH a Conference and Technology Fee. This fee covers regional conference fees for you, the registration fee for the annual business excellence forum and awards, the use of the ActionCOACH website, website hosting, an ActionCOACH email address, and related technology support. However, travel to and from, accommodation during, and meals outside the regional conference are for your account.
- In addition, at least once per year, ActionCOACH organizes a global conference which may be held outside of the U.S. You are not required to attend the global conference. You will have to pay a registration fee and your own travel costs.
8. Annual Regional Conference (EBC’s or key personnel): $0 to $1,200
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- You must pay ActionCOACH a Conference and Technology Fee for you (or your NBC if franchisee is a legal entity) and each EBC/Key Personnel in your franchise. This fee covers conference fees for you and your EBCs/Key Personnel at the annual regional conferences, registration fee for the annual business excellence forum and awards night, the use of the ActionCOACH website, website hosting, an ActionCOACH email address, and related technology support.
- The estimate includes the fee for 1 required Key Personnel to be appointed by you and trained by ActionCOACH before the start of your FIRM’s operations.
9. Computer, Telephone, and Office Equipment: $0 to $4,000
- You must have a computer, specific software, Internet access, printer, scanner, fax, and general office equipment. If you already have equipment meeting ActionCOACH’s specifications, no expenditure will be necessary.
- You should consider obtaining a toll-free telephone number if you plan to serve clients outside of your local calling area.
10. CRM: $0 to $1,080
- You are also required to purchase a CRM software. This estimate is from a current preferred vendor.
11. Non-Coach Email Addresses: $0 to $140
- E-mail addresses are not transferable. New users cannot re-use by adjusting names on existing e-mail addresses.
12. Marketing Materials and Inventory: $1,000 to $5,000
- At start-up, ActionCOACH will provide you with online selection of marketing materials for initial publicity and marketing. The estimate is for additional products, media and stationery, and marketing materials.
13. Insurance: $1,000 to $2,000
- You must obtain general business insurance that meets requirements that ActionCOACH specifies periodically, but in no event less than the minimum insurance requirements under applicable law.
- Currently, ActionCOACH requires $1,000,000 of professional liability insurance, $1,000,000 of general liability insurance, disability or business interruption insurance, worker’s compensation insurance, and any other insurance required by law or your office lease or mortgage.
- ActionCOACH must be listed as an additional insured in the policy or policies.
14. Additional Funds (for first 3 months of operation): $15,000 to $50,000
- This estimate is for additional funds that you may need before operations begin and during the first 3 months of operation to successfully start and market your business. The estimate is based upon information reported by ActionCOACH’s existing Business Coaches and ActionCOACH has not independently verified it.
- The estimate includes miscellaneous startup costs such as deposits, license fees (if any), and legal and accounting fees, and any ongoing operating expenses such as the Marketing and Advertising Fee, equipment leases, inventory, and supplies. It also includes fees you may pay professional advisors to assist you with specific know-how, methods, or technology you deem necessary to be able to competently provide services to your clients.
- It does not include any compensation you may choose to pay yourself.
- The figures provided are not an estimate of the funds you will need to reach “break-even” or any other financial position.
15. Own Web Site (optional and only if approved by ActionCOACH): $0 to $5,000
16. Coaching Platform Subscription: $456 to $912
- You will be required to purchase an annual subscription to the ActionCOACH coaching platform. Estimates provided are rates from ActionCOACH as current provider.
17. Rent: $3,000 to $7,500
- You must operate your FIRM from a professional office space located within your Designated Direct Marketing Area (DDMA). The minimum space requirement of your office is 300 square feet. ActionCOACH suggests that you lease the office space and if possible, for the first 6 months, lease serviced office space with suitable meeting and conference rooms.
- ActionCOACH’s estimate of rent costs is based on a serviced office or similar arrangement. Traditional commercial office leasing may require a fit-out and will cost significantly more.
- Due to the large variance in commercial office lease costs, ActionCOACH is unable to provide cost estimates for that type of office. Your office will typically be located in a multi-tenant office building in your municipality’s business or commercial district.
18. Security Deposit: $1,000 to $2,500
- It is likely that you will be required to pay a security deposit for your office space.
19. Grand Opening Launch Event: $2,500 to $7,500
- This is an estimate to host a grand opening event several months after starting up and is based on the experience from existing franchisees. Your actual expenses will depend on the venue, number of people you invite, and the quantity and types of food and drinks you provide.
20. Salaries and Wages: $0 to $90,000
- This estimate is for three months of wages for the initial employees of the business.
- The low side of the range assumes both you and a spouse will be active in the business holding the NBC and Key Personnel roles, with no other employees, and not paying yourself a salary to start.
- The high end of the range is for an NBC, one additional Key Personnel, and an administrative employee at start-up and based on feedback from existing franchisees regarding level of wages.
21. Marketing Spend: $15,000 to $36,000
- Based on advice from existing franchisees, these are the estimated marketing expenses to get out of the gates initially during the first 3 months. This is to include digital and social media marketing, telemarketing, direct mail, seminars, PR, and other forms of marketing.
- The higher end of the range is for a more aggressive marketing and business growth plan.
22. Master Coach: $0 to $7,500
- ActionCOACH does not require you to hire a master coach, however many of ActionCOACH’s top performers have them and strongly suggest franchisees serious about the business should have one. Most master coaches charge lower fees for other franchisees than they do clients and many do so free for newer franchisees.
- While ActionCOACH strongly suggests not hiring a master coach for at least 3 to 4 months, some of ActionCOACH’s franchisees do so immediately. The high end of the range assumes you hire a master coach immediately who charges $2,500 per month. Your actual costs will be dependent on if, when, and who you hire.
23. Total (1 DDMA): $141,256 to $316,522