Do Business Coaching Franchises Create Critical Mass?
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.