Business Coaching Franchise: Business Coaching in a Box or Bad Idea?

There are a lot of business coaching franchise options out there.  If you’re a business coach or thinking of becoming one, maybe you’re asking yourself if buying a franchise is right for you.

After all, the claims are compelling: business coaching franchisors will tell you that their franchise is an out-of-the-box solution that decreases risk and increases your chances for success.

“Just bring your motivation, personality — and money,” they say. “And you’ll get our name recognition and a proven system.”

While it might sound good, buyer beware. As with anything else in life, there are good business coaching franchises, so-so franchises, and dishonest franchises.

You need to make sure you don’t get taken to the cleaners.

How Much Do I Really Need to Invest to Get My Franchise Underway?

The idea behind business coaching franchises is that you get a proven “business system.”  That means you should expect a model that generates a solid return for a reasonable amount of effort.

But it’s up to you to do enough checking to ensure that the franchise you’re looking at can really deliver.  In my experience, many business coaching franchises simply don’t provide the goods.

Not only that, buying a business coaching franchise requires a huge investment of capital, energy, and resources!  When you begin talking to the franchisor, chances are you’ll expect to spend $50,000 to $75,000.  But don’t forget the long-term costs. Monthly royalty payments (whether or not you’re making any money), marketing fees paid directly to the franchisor to “grow the brand” (generally about 5%), and the cash flow you need to generate leads and close sales.  In the end, expect as much as $100,000 to $200,000!  That’s a lot of money, so don’t rush in.

The Pros and Cons of Business Coaching Franchises

Here are some of the general pros and cons of working with business coaching franchises:


  • “Business-in-a-box” system for acquiring clients and coaching them
  • Support from the franchisor and community of coaches
  • Help with marketing
  • Solid brand recognition (as long as the franchise is top-of-the-line)
  • Ongoing training


  • Huge upfront costs ($100,000 to $200,000)
  • Not allowed to do things the way you want — you’ve got to follow their system
  • Generally expect a slow start and small revenues at first
  • Huge monthly royalties and franchise fees, usually due whether or not you’re making any money
  • There are often online marketing restrictions
  • It can be very difficult to leave if you decide it’s not for you

What Alternatives Are There?

If you know you want to be a business coach, but you’re not sure you want to pursue a franchise, there are other ways of going about it.

Here are some suggestions…

1. Get Your Own Coach. Find a great coaches’ coach — someone who’s made money in this business and can show you how to duplicate their efforts. You can often make incredible progress with your own coach without the financial constraints of a franchise.

2. Learn Everything You Can About Sales & Marketing. Take some time to read everything you can by great sales and marketing masters: Jay Abraham, Dan Kennedy, Neil Rackham, Tom Hopkins, Seth Godin.  Like any business, business coaching depends on sales.  This is a skill you simply must master.

3. Consider a Subscription Service. Check out a subscription service like The Coaches’ Coach for a monthly membership which has all the benefits of a franchise (proven system, ongoing support, marketing help, training, etc.) — but at a fraction of the cost.
Regardless of whether you decide to buy a business coaching franchise or build your own firm, having a proven business coaching system is crucial to generating the lifestyle and income you want and deserve — fast!

ABOUT THE AUTHOR: When Master Coach (and former pastor) Eric Dombach bought his business coaching franchise, he had NO contacts, NO professional experience, and NO marketing or sales skills.  Through hard work, dedication, and lots of trial and error, he grew his business coaching practice from $0 to $1 Million in 4 short years.  Learn everything he knows about business coaching franchises.  Visit for more information!

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Eric Dombach

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