How Much Money Can I Make with a Business Coaching Franchise?
Posted by Eric Dombach on Sat, Nov 19, 2011 @ 11:36 AM
It's no secret that business coaches can make a very good living. Most successful business coaches earn a handsome six-figure income, including many coaches that I've trained personally -- folks who have gone on to earn $200K-$300K per year or more.
But that doesn't mean that everyone will experience such great results.
Business coaching franchisees, in particular, often struggle to put together a business coaching income that exceeds what they could have done working a 40-hour per week job.
Why is that?
The ongoing fees and dues that business coaching franchises collect are often excessively high.
Consider the recent study I conducted of the actual performance of franchisees and their regional managers in one of the largest business coaching franchise brands.
The study involved 7 territories in the UK and 5 territories in the U.S. The average coach earned the equivalent of $81,113 USD -- not bad...EXCEPT when you factor in the costs...
- Overhead -- including marketing, IT, insurance, taxes, software, accounting/legal: $2,000 per month.
- Monthly royalty: $1,000-$1,800 per month. To keep it simple, let's say $1,500.
Over the course of a year, this is $24,000 per year in overhead, $18,000 per year in royalties and franchise expenses...for a net income of just $39,000 per year.
Who would knowingly invest six figures to have a $40,000 a year job and no ability to walk away, due to the liability of ongoing royalty payments? The fact of the matter is that business coaching franchises are generally too cost-prohibitive to be a wise investment. So if you're considering buying one, be sure to do your due diligence and make sure the franchise you're considering has numbers that are considerably higher!
For a more detailed breakdown of the study I mentioned above, as well as comprehensive information on all the ins and outs of buying a business coaching franchise, read our FREE ebook, the Business Coaching Franchise Buyer's Guide. A new version is about to be released, so learn more or download the current edition here!