When you buy a business coaching franchise, do you really own it?
This idea that your business coaching franchise is yours is, perhaps, one of the most common myths in franchising.
The truth is, as Robert Purvin notes in his book on franchises, a franchisee who has PAID for the right to own a business usually has fewer rights than most employees!
There are a couple of reasons for that:
First, as a franchisee, you can be restrained from competing with the former franchisor–while a terminated employee retains the right to work in his or her chosen profession.
Second, 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 certain online marketing strategies)–and can restrict your ability to run an independent business coaching practice after you terminate your agreement or allow your business coaching franchise license to expire.
Bottom line for you? It’s vitally important that you do your due diligence, and ensure the franchise you’re examining provides you plenty of autonomy and independence to run your business the way you see fit.
It's vitally important that you do your due diligence, and ensure the franchise you're examining provides you plenty of autonomy and independence to run your business the way you see fit.
Will you be hamstrung in this way? Check out your franchisor’s reputation online. Go to ripoffreport.com and type in the names of the business coaching franchises you are considering, as well as 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” and get a sense of what people are saying about their franchise experience on the way out.
And when you’re done with that, check out our FREE ebook, The Business Coaching Franchise Buyer’s Guide. It’ll walk you step-by-step through the due diligence process as you determine whether or not buying a business coaching franchise is right for you.