Business Coaching Franchise Myth #3: Franchisees Own Their Own Businesses
Last time, I suggested that you complete the sixth “checkbox” in your Business Coaching Franchise Buyer’s Due Diligence Checklist: a) interview at least 10 franchisees; b) determine whether or not you’ll have the support you believe you’ll need to succeed after you’ve signed your franchise agreement.
Today, I want to go over the third franchise myth from Robert Purvin’s book, The Franchise Fraud. I consider this one to be particularly relevant for prospective business coaches.
Business Coaching Franchise Myth #3
Business Coaching Franchisees Own Their Franchised Businesses.
As I mentioned in my last post, a franchisee who has PAID for the right to own a business usually has fewer rights than most employees! In reality, franchisees don’t truly own their own businesses because they can be taken away or shut down at any time for misconduct. A franchisee is subject to the whims of the business coaching franchisor, no matter how crazy.
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 web-based marketing strategies that bring you leads outside your “territory.”
Franchisors may restrict your ability to run an independent business coaching practice after you terminate your agreement or if your business coaching franchise license expires. This presents a HUGE problem for the business coaching franchisee! Should you leave the franchise, you can be restrained from competing with your former franchisor and forced to leave the business altogether! By comparison, a terminated employee at least retains the right to work in his or her chosen profession, albeit in a different company.
Bottom line for you? It’s vitally important that you perform your due diligence and ensure the franchise you’re examining provides you the autonomy and independence you need to run your business the way you see fit.
Before you invest, we recommend the following critical steps in your due diligence process…
Business Coaching Franchise Due Diligence
ACTIVITY #1: Check out your franchisor’s reputation online. Go to www.ripoffreport.com and type in the names of the business coaching franchises you are considering. Include 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 XYZ” and get a sense of what people are saying about their franchise experience on the way out.
ACTIVITY #2: Since today’s activities shouldn’t take very long, use today as a review day! Go back and catch up on any assignments you’ve missed.
Read through The Business Coaching Franchise Buyer’s Guide, if you haven’t finished it yet and start working through the Business Coaching Franchise Buyer’s Due Diligence Checklist.
Enroll in your FREE 30 days of “Cash and Clients” Strategy Sessions HERE.
Each of these activities are designed to help you make the fastest, most affordable, and most SUCCESSFUL jump into business coaching possible.
For answers to all your questions about business coaching franchise opportunities, grab our free ebook, The Business Coaching Franchise Buyer’s Guide to ensure you make the best possible choice for a successful business coaching franchise career.
To your success,
P.S. As an alternative to buying a business coaching franchise, consider enrolling in a FREE 30 Day Trial of the Coaches’ Coach members only site! It’s our complete business coaching system, including customizable marketing campaigns, sales scripts, client training materials, business optimization modules, and more. Now, you can get a FREE 30-day trial. One of our clients recently closed $1,500 in recurring monthly revenue after just 3 days with our system…think what that could mean for YOUR business!