ActiveCOACH Franchise Costs: Estimated Initial Investment (Item 7, 2021 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

• 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 high range assumes 1 Key Personnel is 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.  Non-Coach Email Addresses:  $288 fee for setup per user

• E-mail addresses are not transferable. New users cannot re-use by adjusting names on existing e-mail addresses.

11.  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.

12.  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.

13.  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 high range of the estimate also includes expenses for hiring or contracting at least 1 Key Personnel plus a more aggressive initial marketing plan.

• The figures provided are not an estimate of the funds you will need to reach “break-even” or any other financial position.

14.  Own Web Site (optional and only if approved by ActionCOACH):  $0 to $5,000

15.  Coaching Platform Subscription:  $456 fee for setup per user

• You will be required to purchase an annual subscription to the ActionCOACH coaching platform. Estimates provided are rates from ActionCOACH as current provider.

16.  Rent:  $2,000 to $6,000

• 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.

17.  Security Deposit:  $2,000 to $6,000

• It is likely that you will be required to pay a security deposit for your office space.

18.  Total:  $125,700 to $197,790

For a PRACTICE Franchise

1.  Franchise Fee:  $49,500

2.  Franchisee Training Fee:  $25,000

3.  Travel to Franchisee Training:  $250 to $1,250

4.  Conference and Technology Fee:  $0 to $495

5.  Travel to Annual Regional Conference:  $0 to $2,500

6.  Computer, Telephone, and Office Equipment:  $0 to $4,000

7.  Non-Coach Email Addresses:  $288 fee for setup per user

8.  Marketing Materials and Inventory:  $1,000 to $2,500

9.  Insurance:  $1,000 to $2,000

10.  Additional Funds (for first 3 months of operation):  $10,000 to $30,000

11.  Own Web Site (optional and only if approved by ActionCOACH):  $0 to $5,000

12.  Coaching Platform Subscription:  $456 fee for setup per user

13.  Rent:  $0 to $1,000

14.  Security Deposit:  $0 to $1,000

15.  Total:  $87,494 to $124,989