In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the ActionCOACH franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an ActionCOACH franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an ActionCOACH franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned ActionCOACH outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of ActionCOACH’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2019 and 2020 actual, average, median, highest, and lowest annual collected revenues for the 7 ActionCOACH franchisees located in Minnesota and Wisconsin that had operated as a franchisee for a consecutive 12-month period for the fiscal year ending December 31, 2020 (the “Benchmark Outlets”)

• collected revenues for each of the individual Benchmark Outlets for each of the fiscal quarters from Q4 2019 through Q1 2021

• 2020 average, median, highest, and lowest annual gross revenues, 1-to-1 sales, sales of other products, and hourly rate for FIRM franchises, PRACTICE franchises, and USA franchises

Section I – Background Information

14 Things You Need to Know About the ActionCOACH Franchise

Charitable Foundation Set to Raise $200,000 to ‘Ignite Entrepreneurial Spirit’ in Youth Worldwide

1.  In mid-May 2021, the ActionCOACH Foundation kicked off the inaugural “Ignite the Spirit” Spring Fundraising Campaign. The campaign planned to raise $200,000 by June 11 with the help of nearly 1,000 ActionCOACHes and their 18,000 coaching clients in 70 countries all over the world.

2.  ActionCOACH CEO Brad Sugars said, “We want to help young adults become employers – not employees. When we ‘ignite the entrepreneurial spirit in youth worldwide,’ we help inspire and educate future leaders who can accelerate the global impact of an ActionCOACH business education.”

3.  ActionCOACH Foundation launched its free, self-paced online YESS Young Entrepreneur Smart Start course for students ages 12-22 on February 10, 2021. The program already had over 130 students enrolled with the first two students nearing course completion. “I’ve gotten through about 11 videos, and I’m really enjoying it. It’s teaching me so much,” said 18-year-old South African student, Caden Coetsee, a couple of weeks into the program.

4.  When asked how the program could be improved, 16-year-old Vashti Singh from Guyana, the first student to watch all 81 of the YESS Business Basics short videos, replied “You can improve this program by sending out links of the course abroad and to more (people). It’s the best I have come across.”

5.  Even as the ActionCOACH Foundation readied its virtual ceremony for the first graduating class, it was preparing to launch its first group class on June 1st. Schools and youth organizations around the world are invited to contact the Foundation to set up a cohort to teach the YESS Business Basics curriculum to their students. The program provides award-winning, “real world” money management and business skills that can only be learned from successful entrepreneurs who are willing to share.

6.  The “Ignite the Spirit” campaign is essential to the long-term health and expansion of the YESS Young Entrepreneur Smart Start program and other ActionCOACH Foundation programs like “Coaching for a Cause.”

7.  Doug Winnie, board chair of the ActionCOACH Foundation, explains, “Our programs are 100% free to the students and the leaders of nonprofits. Because of this and the need for advancing technology, growing our team, and student and school business grants, we are eager to attract donors who support our cause. With more participants, we can help more young adults become employers of future generations.”

Continuing Global Expansion

8.  At the beginning of October 2021, ActionCOACH announced that it had plans to expand to more countries in the coming months. ActionCOACH, the world’s largest and most successful business coaching franchise, has been dedicated to reversing the trend of business failure and works with more than 18,000 businesses weekly to ensure that small enterprises all over the world remain vital and growing.

9.  ActionCOACH is exploring opportunities in some of the most exciting and fastest growing markets all over the world. Plans to expand include franchises in Northern Africa, specifically Kenya and Nigeria. Vic Ciuffetelli, director of global sales for ActionCOACH, said, “It’s exciting to see our organization reaching into new territories and markets. As the originator of the business coaching industry, we believe it is our responsibility to continue improving the lives of business owners all over
the world.”

10.  In addition to Northern Africa, ActionCOACH is opening Master Licensee and franchising opportunities in Denmark, Thailand, Poland, South Korea, Hong Kong, Russia, Taiwan, and Italy. These untapped markets offer new franchise partners endless possibilities with low competition and high potential growth. The economies in these areas are already showing a rebound and will allow ActionCOACH to serve business owners by helping them develop new strategies to build stronger teams, make more money, and ultimately be more profitable.

Company History

11.  ActionCOACH was founded in 1993 by Brad Sugars, who is also credited with pioneering the concept of business coaching. Sugars had always had an entrepreneurial spirit and he owned several small businesses while he was attending university. His businesses were a success and people began to notice. Sugars was often asked to speak to other business owners and executives to share his tips and advice on marketing, sales, systematization, and team building.

12.  His events were popular and business owners began asking him for consultation services. However, Sugars felt that consultation wasn’t the answer and instead, he wanted to directly teach these business owners the strategies he used to achieve his own success. This was the idea behind ActionCOACH, which was originally called Action International.

13.  Just a few years after founding ActionCOACH, Sugars began franchising in 1997. He felt that franchising allowed his business coaches to own their own business as well. Today, there are ActionCOACH locations in more than 80 countries.

Entrepreneur’s Franchise 500

14.  ActionCOACH did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of ActionCOACH franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on ActionCOACH’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  131
• Outlets at the End of the Year:  137
• Net Change:  +6

2019

• Outlets at the Start of the Year:  137
• Outlets at the End of the Year:  154
• Net Change:  +17

2020

• Outlets at the Start of the Year:  154
• Outlets at the End of the Year:  121
• Net Change:  -33

Company-Owned

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• All data in this Item 19 was based on unaudited data reported to ActionCOACH by its  franchisees for each of their outlets. The reporting of this data is on a voluntary basis.

A.  Territory Information – Minnesota and Wisconsin

Part 1 – Unaudited Average Collected Revenues in the Territory

• Part 1 is a historical representation of the unaudited average and median annual Collected Revenues (as defined below) self-reported by each of the 7 franchisees located in the Territory that had operated as a franchisee for a consecutive 12-month period for the fiscal year ending December 31, 2020 (the “Benchmark Outlets”).

• These criteria were chosen to present historical data that covered 1 full year of an outlet’s operations. All franchise outlets in the Territory for the reported periods are PRACTICE franchises (PRACTICE, PRACTICE Premium).

• Median Annual Collected Revenues:  $285,480
• Average Annual Collected Revenues:  $310,600
• Percentage of Benchmark Outlets That Reached or Exceeded Average:  43%
• Number of Benchmark Outlets That Reached or Exceeded Average:  3
• Highest Annual Collected Revenues:  $578,475
• Lowest Annual Collected Revenues:  $380,018

Part 2 – Unaudited Collected Revenues of the 7 Benchmark Outlets in the Territory

• Part 2 is a historical representation of the unaudited Collected Revenues of each of the individual Benchmark Outlets for the fiscal year ending December 31, 2020 which were self-reported by the franchisees.

Collected Revenues

• Outlet #1:  $578,475
• Outlet #2:  $477,470
• Outlet #3:  $380,018
• Outlet #4:  $285,480
• Outlet #5:  $267,340
• Outlet #6:  $137,659
• Outlet #7:  $47,760

Part 3 – 2019 Unaudited Collected Revenues of the 7 Benchmark Outlets in the Territory

• Parts 3 and 4 are for comparison purposes to give more insight relative to the effect of the pandemic.

• Part 3 is a historical representation of the unaudited Collected Revenues for each of the individual Benchmark Outlets for the fiscal year ending December 31, 2019 which were self reported by the franchisees. The number of each outlet listed in Part 3 corresponds to the same numbered outlet from Part 2.

Collected Revenues

• Outlet #1:  $551,863
• Outlet #2:  $706,187
• Outlet #3:  $672,998
• Outlet #4:  $263,415
• Outlet #5:  $256,430
• Outlet #6:  $285,869
• Outlet #7:  $30,000

Part 4 – Quarterly Unaudited Collected Revenues of the 7 Benchmark Outlets

• Part 4 is a historical representation of the unaudited Collected Revenues for each of the individual Benchmark Outlets for each of the fiscal quarters from Q4 2019 through Q1 2021 which were self-reported by the franchisees. The number of each outlet listed in Part 4 corresponds to the same numbered outlet from Part 2.

2019 Q4 Collected Revenues

• Outlet #1:  $175,258
• Outlet #2:  $168,311
• Outlet #3:  $168,754
• Outlet #4:  $66,831
• Outlet #5:  $75,230
• Outlet #6:  $72,538
• Outlet #7:  $7,500

2020 Q1 Collected Revenues

• Outlet #1:  $139,018
• Outlet #2:  $143,896
• Outlet #3:  $79,872
• Outlet #4:  $84,985
• Outlet #5:  $64,160
• Outlet #6:  $41,094
• Outlet #7:  $11,940

2020 Q2 Collected Revenues

• Outlet #1:  $121,714
• Outlet #2:  $108,336
• Outlet #3:  $62,467
• Outlet #4:  $61,945
• Outlet #5:  $39,670
• Outlet #6:  $31,280
• Outlet #7:  $11,940

2020 Q3 Collected Revenues

• Outlet #1:  $140,056
• Outlet #2:  $113,987
• Outlet #3:  $113,509
• Outlet #4:  $68,625
• Outlet #5:  $75,286
• Outlet #6:  $32,950
• Outlet #7:  $11,940

2020 Q4 Collected Revenues

• Outlet #1:  $177,687
• Outlet #2:  $111,251
• Outlet #3:  $124,170
• Outlet #4:  $69,925
• Outlet #5:  $88,224
• Outlet #6:  $32,335
• Outlet #7:  $11,940

2021 Q1 Collected Revenues

• Outlet #1:  $194,452
• Outlet #2:  $111,329
• Outlet #3:  $126,932
• Outlet #4:  $73,915
• Outlet #5:  $74,391
• Outlet #6:  $28,110
• Outlet #7:  $14,100

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

• “Collected Revenues” means the amount of the total fees applicable to the services performed or products sold by or in connection with the ActionCOACH Business that were actually collected by an outlet from its Clients (which reflects, among other things, any discounts or rebates applied by the outlet to the base fees that would otherwise have been charged to the Client). Collected Revenues do not include sales taxes or credits such as the sale price of any products returned by Clients or other taxes that an outlet collects from Clients and pays directly to the appropriate governmental authorities.

• Some of the outlets may be working either together formally or informally to derive the results above and may have received additional marketing or sales assistance from ActionCOACH.

B.  Systemwide Information – United States

FIRM franchises: 12 outlets of FIRM franchises that operated for all 12 months of the year ended December 31, 2020, which are also:

• 57% of the total 21 FIRM outlets operating as of December 31, 2020;
• 12% of the total 103 franchise outlets that operated for all 12 months of the year ended December 31, 2020;
• 10% of the total 121 franchise outlets operating as of December 31, 2020.

PRACTICE franchises:  91 outlets of PRACTICE, PRACTICE (Pro), PRACTICE (7 Year), and PRACTICE (Premium) franchises that operated for all 12 months of the year ended December 31, 2020, which are also:

• 91% of the total 100 PRACTICE, PRACTICE (Pro), PRACTICE (7 Year), and PRACTICE (Premium) franchise outlets operating as of December 31 of 2020;
• 88% of the total 103 franchise outlets that operated for all 12 months of the year ended December 31, 2020;
• 75% of the total 121 franchise outlets operating as of December 31, 2020.

USA franchises:  103 franchise outlets that operated for all 12 months of the year ended December 31, 2020 or 85% of the total 121 franchise outlets operating as of December 31, 2020

Part 5 – Gross Revenues

FIRM

• Average Annual Gross Revenues:  $318,333
• Average Monthly Gross Revenues:  $26,528
• Number of Franchisees That Reached or Exceeded Average:  5
• Percentage of Franchisees That Reached or Exceeded Average:  42%
• Highest Annual Gross Revenues:  $1,010,456
• Lowest Annual Gross Revenues:  $369,987
• Median Annual Gross Revenues:  $202,858

PRACTICE

• Average Annual Gross Revenues:  $158,814
• Average Monthly Gross Revenues:  $13,235
• Number of Franchisees That Reached or Exceeded Average:  35
• Percentage of Franchisees That Reached or Exceeded Average:  38%
• Highest Annual Gross Revenues:  $639,796
• Lowest Annual Gross Revenues:  $159,913
• Median Annual Gross Revenues:  $121,485

USA

• Average Annual Gross Revenues:  $177,581
• Average Monthly Gross Revenues:  $14,798
• Number of Franchisees That Reached or Exceeded Average:  36
• Percentage of Franchisees That Reached or Exceeded Average:  35%
• Highest Annual Gross Revenues:  $1,010,456
• Lowest Annual Gross Revenues:  $179,500
• Median Annual Gross Revenues:  $121,485

Part 6 – 1-to-1 Sales

FIRM

• Average Annual 1-to-1 Sales:  $246,224
• Average Monthly 1-to-1 Sales:  $20,519
• Number of Franchisees That Reached or Exceeded Average:  5
• Percentage of Franchisees That Reached or Exceeded Average:  42%
• Highest Annual 1-to-1 Sales:  $760,550
• Lowest Annual 1-to-1 Sales:  $291,635
• Median Annual 1-to-1 Sales:  $100,913

PRACTICE

• Average Annual 1-to-1 Sales:  $134,820
• Average Monthly 1-to-1 Sales:  $11,235
• Number of Franchisees That Reached or Exceeded Average:  39
• Percentage of Franchisees That Reached or Exceeded Average:  43%
• Highest Annual 1-to-1 Sales:  $506,666
• Lowest Annual 1-to-1 Sales:  $136,640
• Median Annual 1-to-1 Sales:  $106,610

USA

• Average Annual 1-to-1 Sales:  $147,926
• Average Monthly 1-to-1 Sales:  $12,327
• Number of Franchisees That Reached or Exceeded Average:  40
• Percentage of Franchisees That Reached or Exceeded Average:  39%
• Highest Annual 1-to-1 Sales:  $760,550
• Lowest Annual 1-to-1 Sales:  $152,163
• Median Annual 1-to-1 Sales:  $105,533

Part 7 – Sales of Other Products

FIRM

• Average Annual Sales of Other Products:  $8,239
• Average Monthly Sales of Other Products:  $687
• Number of Franchisees That Reached or Exceeded Average:  2
• Percentage of Franchisees That Reached or Exceeded Average:  17%
• Highest Annual Sales of Other Products:  $83,267
• Lowest Annual Sales of Other Products:  $15,595
• Median Annual Sales of Other Products:  –

PRACTICE

• Average Annual Sales of Other Products:  $17,330
• Average Monthly Sales of Other Products:  $1,444
• Number of Franchisees That Reached or Exceeded Average:  23
• Percentage of Franchisees That Reached or Exceeded Average:  25%
• Highest Annual Sales of Other Products:  $135,819
• Lowest Annual Sales of Other Products:  $17,980
• Median Annual Sales of Other Products:  $2,767

USA

• Average Annual Sales of Other Products:  $16,261
• Average Monthly Sales of Other Products:  $1,355
• Number of Franchisees That Reached or Exceeded Average:  26
• Percentage of Franchisees That Reached or Exceeded Average:  25%
• Highest Annual Sales of Other Products:  $135,819
• Lowest Annual Sales of Other Products:  $16,310
• Median Annual Sales of Other Products:  $1,433

Part 8 – Hourly Rate

FIRM

• Average Hourly Rate:  $348
• Number of Franchisees That Reached or Exceeded Average:  7
• Percentage of Franchisees That Reached or Exceeded Average:  58%
• Highest Hourly Rate:  $705
• Lowest Hourly Rate:  $351
• Median Hourly Rate:  $351

PRACTICE

• Average Hourly Rate:  $328
• Number of Franchisees That Reached or Exceeded Average:  44
• Percentage of Franchisees That Reached or Exceeded Average:  48%
• Highest Hourly Rate:  $828
• Lowest Hourly Rate:  $331
• Median Hourly Rate:  $320

USA

• Average Hourly Rate:  $330
• Number of Franchisees That Reached or Exceeded Average:  51
• Percentage of Franchisees That Reached or Exceeded Average:  50%
• Highest Hourly Rate:  $828
• Lowest Hourly Rate:  $331
• Median Hourly Rate:  $321

• “Gross Revenues” means the total receipts derived by each outlet from services performed and products sold by or in connection with the Business. Gross Revenues also include any proceeds an outlet may receive from business interruption insurance. Gross Revenues do not include sales taxes or credits such as the sale price of any products returned by Clients or other taxes that an outlet collects from Clients and pays directly to the appropriate governmental authorities.

• “1-to-1 Sales” means sales of the following business coaching programs: StartUP,  StepUP, PowerUP, FreedomCOACH, and UltimateCOACH.

• “Other Products” means all products or programs other than the 1-on-1 business coaching programs.

• Some of the outlets may be working either together formally or informally to derive the results above and may have received additional marketing or sales assistance from their respective master licensees.

• The financial performance representation figures do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• A new franchisee’s financial results may differ from the results stated in this financial performance representation.

• Historical results are not an indicator of future performance. The gross revenue figures stated in this Item 19 should not be considered as the actual or potential gross revenue figures that will be realized by any prospective franchisee.

• ActionCOACH offers substantially the same coaching programs for delivery to clients to all franchisees.

• Although ActionCOACH may suggest prices for coaching programs offered by franchisees, franchisees may offer and sell coaching programs and services at any price it chooses.

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