How well do business coaching franchisors support their franchisees?
If you’re looking to buy a business coaching franchise as opposed to starting your own firm from scratch, it’s probably because you hope for the extra support and expertise a business coaching franchisor would bring to the table.
But is that a realistic expectation?
Robert Purvin is the Chairman of the American Association of Franchisees and Dealers (AAFD), a not-for-profit organization that is dedicated to promoting fair and ethical franchising practices. Prior to being named Chair of AAFD, he had 24 years’ franchise law experience and is known for his skills in dispute resolution and mediation.
In his book, The Franchise Fraud: How to Protect Yourself Before and After You Invest, he tackles this very question.
And the truth is, according to Purvin–and my experience–if you decide to purchase a business coaching franchise, you can usually expect to adhere strictly to the franchisor’s operating system…with little or no actual support from the franchisor.
That’s because most franchise agreements are written to protect the franchisor, not you, even while restricting what you can and cannot do with your business.
Most franchise agreements are written to protect the franchisor, not you, while restricting what you can and cannot do with your business.
Many frustrated business coaching franchisees have discovered that they actually have less control over their own operation and destiny than most employees–with fewer avenues for recourse in the event things get ugly.
How to Protect Yourself
During the sales process, many business coaching franchisors will try to sell you on the idea that you’re buying a “protective relationship” with your franchisor. Watch out: once you get into court, they’ll probably argue the exact opposite–that they are merely sellers of goods and services and owe you no special duties of care or support.
Protect yourself before you enter into a franchise agreement.
First, read the fine print carefully. As a business coach, you don’t want to wind up in a situation where you’re expected to perform in the market, without any help or support, and owe a massive franchise fee each month.
Then, interview at least 10 current franchisees in the brand you’re considering and ask them whether or not they’re satisfied with the level of support they’ve received from the franchisor. Chances are, your experience will be similar to what you hear from them!
Finally, download your own FREE copy of our ebook, The Business Coaching Franchise Buyers Guide. It walks you step-by-step through the due diligence process of buying a business coaching franchise–so that you can be sure your investment is a sound one.