How Much Money Can I Make with a Business Coaching Franchise?

by | Jun 1, 2020 | Business Coaching Franchise

It’s a fact 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.

If you’re considering breaking into business coaching by buying a business coaching franchise, you probably have one question on your mind: can business coaching franchisees expect to achieve such awesome results?

It’s an important question. Particularly because, in my experience, business coaching franchisees–as opposed to independent business coaches–often struggle to put together a business coaching income that exceeds what they could have done working a 40-hour per week job.

Why Does Buying a Business Coaching Franchise Set You Up to Underperform?

The answer is simple: the ongoing fees and dues that business coaching franchises collect are often excessively high.

Consider the study I conducted a few years back 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 often 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!

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?

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. You’ll discover all the questions you should ask and what you should look for before you invest in a business coaching franchise.

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