Actioncoach Business Coaching Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$74,055 - $562,495
Franchise Fee
$40,000
Total US Locations
147
Business Summary
ActionCOACH Business Coaching operates a franchise system that provides business coaching, executive coaching, mentoring, and training services to owners of small to mid-market businesses and their teams. ActionCOACH offers two models: the "PARTNER" model, designed for self-employed individuals who act as their own coach, and the "FIRM" model, which is an investor-level option for those who want to build and manage a team of business coaches. The services offered by ActionCOACH help clients with strategic planning, sales, marketing, communication, team building, and overall business management, aiming to improve business growth, team culture, and personal development.
Corporate History
ActionCOACH North America, LLC (ACNA) was incorporated in Nevada on March 14, 2012, and operates by granting Master Licenses for business coaching, mentoring, and training programs across the U.S. The ActionCOACH concept itself, initially known as Action International, was founded by Brad Sugars in the early 1990s. Action International Pty Ltd was incorporated in Australia in 1994 to develop the business and began offering franchises there in January 1995, continuing until December 2006. In the U.S., prior to ACNA's formation, ActionCOACH USA, Inc. (ACUI), a predecessor, offered Master Licenses and direct Business Coach franchises from August 1999, first under the 'Action International' trademark and then transitioning to the 'ActionCOACH' trademark by January 2007. ACNA now holds the right to sublicense the ActionCOACH intellectual property, which was assigned to ActionCOACH IPCo, Ltd. in 2012.
Financial Overview
Investment Range
$74,055 - $562,495
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$75,000
Royalty %
10%
Marketing %
5%
Equipment Costs (High)
$4,000
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
ActionCOACH North America, LLC's financial statements show positive net income over the past three years, though it has declined from $1.09 million in 2021 to $249,026 in 2023. The company also reported negative cash flow from operating activities in 2023, decreasing by $457,840. A significant portion of ActionCOACH North America, LLC's assets, totaling over $3.6 million in 2023, are receivables from related parties, which are non-interest bearing and due on demand. Despite these factors, the auditors did not raise substantial doubt about ActionCOACH North America, LLC's ability to continue as a going concern.
Financing Details
ActionCOACH North America, LLC and its Master Licensee, Buji, LLC, do not offer any direct or indirect financing to franchisees. They also do not guarantee any notes, leases, or other obligations franchisees may undertake with third parties for their business.
Performance Metrics
Total US Locations
147
Franchised Units
145
Corporate Units
2
Franchising Since
1995
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
4
Litigation Summary
ActionCOACH Business Coaching and its Master Licensee, Buji, LLC, have been involved in a few legal matters. Buji, LLC sued existing franchisees in Wisconsin in 2019 for breaching non-competition clauses. The franchisees counter-sued for breach of contract, antitrust violations, and other claims. This case was settled in February 2020, with the franchisees paying Buji, LLC $200,000 and an additional $72,000 to resolve all disputes. ActionCOACH North America, LLC (ACNA) also sued a former franchisee in Nevada in December 2019 for violating a non-compete agreement after their franchise term expired. This case settled in May 2021, with the former franchisee agreeing to stop using ActionCOACH's proprietary information. Historically, the predecessor to ACNA, Brad Sugars Action International, Inc. (ACUI), faced an administrative proceeding in Maryland in 2002 for alleged violations of franchise law, including unregistered offers and sales, incorrect disclosures, and improper earnings claims. ACUI entered into a Consent Order without admitting fault, agreeing to cease violations and implement a compliance program. ACUI also received a Desist and Refrain Order from the California Department of Corporations in 1999 for offering franchises without registration, which ACUI addressed by terminating two franchise relationships and refunding $207,000 in 2002.
Bankruptcy History
ActionCOACH North America, LLC's Director of Partner Success, Mr. Nic Clark, filed a personal Debtor's Petition with the Australian Financial Security Authority in October 2012. The order of discharge under the Bankruptcy Act was issued in October 2015.
Agreement Terms
Initial Term
15 years
Renewal Term
15 years
Renewal Conditions
To renew their ActionCOACH franchise, franchisees must provide written notice at least six months before their current term expires. They must be current on all payments, remedy any specified breaches, and have received no more than one notice of default in the preceding 24 months. Franchisees need to maintain a good record of compliance with their agreement and the operating manuals, and meet the minimum performance and business coach requirements (for FIRM franchises). They will also be required to sign an updated franchise agreement, which may contain different terms, upgrade their business's image and appearance, pay a renewal fee, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
ActionCOACH Business Coaching provides franchisees with pre-opening assistance, including arranging initial training, helping develop an initial business plan, and guiding pre-opening activities and promotional materials. They also assist in determining office locations and provide online access to operating manuals and the ActionCOACH intranet. After opening, franchisees receive weekly communication for the first 90 days to discuss operational challenges and get guidance on marketing, sales, and coaching. Ongoing support includes approval and arrangement for additional training, annual regional conferences (mandatory for owners/MDCs), updates on System changes, and other guidance deemed necessary.
Initial Training Hours
70
Training Location
Virtual or Las Vegas, Nevada
Ongoing Support
After opening, ActionCOACH Business Coaching franchisees receive weekly communication for the first 90 days, including personal telephone calls, team captain calls, or team calls to discuss operational challenges and provide guidance on marketing, sales, and coaching activities. The franchise also provides online access to updated operating manuals and informs franchisees of any changes or improvements to the ActionCOACH System. Franchisees (or their Managing Director Coaches) are required to attend at least one annual regional conference to discuss and refine skills, learn new strategies, and stay updated on standards. Additional guidance and assistance are offered as deemed necessary.
Franchise Requirements
Ideal Candidate Profile
ActionCOACH Business Coaching seeks qualified individuals or groups who align with their culture and aim to achieve personal and business goals. Ideal candidates are committed to enhancing the brand, consistently implementing operating systems while customizing them for their clients and geography, and acting as leaders in their local business communities. They should focus on client satisfaction, cooperate with other Business Coaches, help build market share, and enthusiastically participate in all aspects of the relationship, fulfilling all financial and legal obligations. For the 'FIRM' model, owners are typically focused on strategy, hiring, and leading employees, driving growth and market penetration, and can be active or semi-passive. For the 'PARTNER' model, the owner typically serves personally as the Managing Director Coach.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Limited
Staff Count
1
Territory Size Requirements
For the FIRM model, ActionCOACH Business Coaching typically defines a Designated Direct Marketing Area (DDMA) with approximately 10,000 businesses, determined by third-party demographic information based on U.S. Census Bureau data. These DDMAs are defined by contiguous zip codes, postal codes, and/or counties. While the size of a DDMA may fluctuate due to economic or demographic changes, it does not result in a refund or additional fee. The PARTNER model also assigns a non-exclusive DDMA, but its specific size is not provided.
Staffing Notes
ActionCOACH Business Coaching offers two models with different staffing structures. The 'PARTNER' model is primarily a single Business Coach operation, with the owner typically serving as the Managing Director Coach (MDC) and no Employee Business Coaches (EBCs). The 'FIRM' model is an investor-level, 'Team-Builder' operation. In this model, the owner can be active or semi-passive, but must employ or contract at least one Key Personnel (such as a Sales Manager, Lead Generation Specialist, or EBC) within the first year after training, in addition to the owner/MDC. All MDCs and EBCs must be approved by the Master Licensee, trained by the Franchisor, and sign nondisclosure and noncompete agreements.