Here’s an important question we get from people considering investing in a business coaching franchise: how much will I earn in a business coaching franchise?
It’s no secret that business coaches can make a great living.
Most of the successful business coaches out there are earning at least a 6-figure income–anywhere from $100,000 to $200,000 per year. Many of the folks that I have personally trained and mentored in this business for the last ten years have gone to earn $200,000-$300,000 per year, and my average is $410,000. But that doesn’t mean that everyone can experience results like that.
In fact, a number of years ago we conducted a study of the actual revenue performance of franchisees and regional managers in one of the major franchise brands. The study involved seven territories of the UK and five territories in the U.S.
And the average coach in this particular brand was earning the equivalent of $81,113.
You might say, that’s not bad. $81,000?
And you’re right–that’s not bad at all…until you factor in costs.
The Hidden Costs of Being a Business Coaching Franchisee
See, there are dozens of hidden costs that business coaching franchises don’t tell you about–costs that significantly impact your take-home pay.
You’ve got $2,000 per month in overhead, marketing, IT, insurance, taxes, software, etc.,–or $24,000 per year. And then you have the franchisors royalty. This is typically anywhere from $1000-$1800 a month (we’ll say $1500 as an average), for another $18,000 per year.
Your $81,000 has been reduced to $39,000 just like that.
Do you really want to invest $100,000 to earn $40,000 per year?
Your question was, how much will I earn as a business coaching franchise? When you run the numbers, you realize that franchises seriously eat away at your profits–so that if you earn the average of $81,000 per year, you’ll be left with less than half that when all is said in done.
Take that into account as you’re thinking about business coaching franchising as a solution to getting into the business coaching industry.
And if you want more information, download our free ebook, The Business Coaching Franchise Buyer’s Guide. It will help you think through all the pros and cons of buying a business coaching franchise. Enjoy!