How to Become a Business Coach

Do Business Coaching Franchises Create Critical Mass?

By on January 1, 2018
Do business coaching franchises create critical mass? Or are they actually shrinking in relevance and impact despite the growth of the industry in general?

One of the most common reasons business coaching franchisors cite when pitching prospects is that business coaching franchises create critical mass.

In other words, when you purchase a franchise, you’re “joining a movement,” they’ll say.

You’re contributing to massive market penetration.

And as the movement grows, your franchise will enjoy a broad customer base and economies of scale in advertising as well.

At least, that’s how the argument goes.

But Is It True?

There’s no doubt that business coaching is a growing industry.  More and more business leaders are turning to coaches to help them navigate the complex realities of running a successful enterprise.

Unfortunately, most business coaching franchises simply don’t have the necessary units to make that big an impact. There aren’t enough to say that business coaching franchises create critical mass.

In fact, with recent shifts in the marketplace, there has actually been a widespread downturn in the performance of business coaching franchisees…and as a result, market penetration is actually SHRINKING for most business coaching franchise brands, instead of the other way around!

Overall demand for business coaching continues to rise. But franchising is proving more and more that it is NOT a reliable model for the industry.

That’s unfortunate, because overall demand for business coaching continues to rise. But franchising is proving more and more that it is NOT a reliable model for the industry. As always: buyer beware.

For more insights on whether or not buying a business coaching franchise is right for you, download our FREE ebook, The Business Coaching Franchise Buyer’s Guide.

Business Coaching Franchise Buyers Guide

Eric Dombach

About Eric Dombach

Eric Dombach is the Founder of Coaches’ Coach. In 2001, he founded a business coaching firm that, by 2005, was generating more than $1 million USD in revenue, 23% operating profit, and average annual growth rate of 140% per year. In 2005, he sold the firm to 4 of his employees for $1 million U.S. dollars, generating a return on capital of more than 800%. Since then he has trained more than 1,300 independent and franchise business coaches in the United States, Canada, Mexico, Europe, and Australasian markets.

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