Here’s a common business coaching franchise myth: the idea that you own your own business.
In fact, in many cases, a franchisee who has paid for the right to “own” a business usually has fewer rights than most employees! Most franchisees don’t truly own their own businesses because a franchise can be taken away or shut down for misconduct. A franchisee is subject to the whims of the business coaching franchisor, no matter how crazy.
Franchise manuals often dictate exactly how you have to run your business, even if your local circumstances or business instincts would lead you to make another choice. That means you are bound to comply with your franchisor’s directives, no matter what.
As a business coach, this often means you are restricted from generating new business and leads in ways that you would otherwise pursue, such as marketing outside your geographical territory–even if you’re pursuing a market niche that wouldn’t necessarily require local boundaries.
Franchise manuals often dictate exactly how you have to run your business, even if your local circumstances or business instincts would lead you to make another choice. That means you are bound to comply with your franchisor's directives, no matter what.
What’s more, franchisors may restrict your ability to run an independent business coaching practice after you terminate your agreement or if your business coaching franchise license expires. This presents a huge problem for the business coaching franchisee! Should you leave the franchise, you can be restrained from competing with your former franchisor and forced to leave the business altogether. By comparison, a terminated employee at least retains the right to work in his or her chosen profession, albeit in a different company.
Bottom line for you? It’s vitally important that you perform your due diligence and ensure the franchise you’re examining provides you the autonomy and independence you need to run your business the way you see fit.
Before you invest, we recommend the following critical steps in your due diligence process…
Business Coaching Franchise Due Diligence
First, check out your franchisor’s reputation online. Go to www.ripoffreport.com and type in the names of the business coaching franchises you are considering. Include the names of the founder(s)/owner(s). This should help you get a sense for whether or not you’ll get the flexibility you need to run a business that can be successful. Next, Google the phrase “business coaches who have left XYZ” and get a sense of what people are saying about their franchise experience on the way out.
Next, read through The Business Coaching Franchise Buyer’s Guide and start working through the Business Coaching Franchise Buyer’s Due Diligence Checklist.
Finally, as an alternative to buying a business coaching franchise, consider enrolling in a FREE 30-Day Trial of the Coaches’ Coach members only site! It’s our complete business coaching system, including customizable marketing campaigns, sales scripts, client training materials, business optimization modules, and more. Now, you can get a FREE 30-day trial. One of our clients recently closed $1,500 in recurring monthly revenue after just 3 days with our system…think what that could mean for YOUR business!