How to Become a Business Coach
How to Become a Business Coach

Why Isn’t My Business Coaching Franchise Working?

By on February 1, 2020
Have you ever asked yourself, Why isn't my business coaching franchise working? It could be because of one of these five common causes of failure.

Today I want to answer another frequently asked question that we get from business coaches around the world, which is: why isn’t my business coaching franchise working?

Many business coaching franchisees purchased a franchise because they thought it would be a faster, cheaper way to begin raking in six-figure paychecks.

The problem is, those kinds of successes for business coaching franchisees are the exceptions, rather than the rule.

So why do some franchisees fail?

In my decades of experience in the business coaching franchise industry, I’ve seen that most reasons for failure fall into one of these five categories:

Category # 1. You’ve taken on too much of a financial burden.

You spent $50,000 to $200,000 of your war chest buying the franchise and getting your business started, and you have not been able to move through the learning curve fast enough to get the business up and running and cash flowing. Buying a business coaching franchise exposes you to a lot of risk because you spend such a significant amount to get into business. Then you’re in danger of running out of cash before you actually have the business up and running.

Buying a business coaching franchise exposes you to a lot of risk because you spend such a significant amount to get into business, you're in danger of running out of cash before you actually have the business up and running.

Category # 2. Not enough support.

Most business coaching franchisees provide pretty limited support after you go through their initial training. That’s not enough when you’re learning a business as skilled and specific as business coaching. The most successful coaches have a coaches’ coach! But most business coaching franchises limit their support to group coaching calls, conferences, and training measures. It’s hard to succeed that way.

Category # 3. You invested in a system that doesn’t work.

There are a lot of unscrupulous people out there selling business coaching franchise systems that aren’t actually proven in the field. Sometimes you get a high-profile, gifted, successful trainer who goes out to the marketplace and starts selling their system before they’ve even proven that it works for anybody besides themselves.

Category #4. Too many franchise limitations.

A lot of business coaching franchise rules will limit where you can do business. But in order to be successful as a business coach, you need to market yourself to a specific and well-defined niche of business owners who respond well to who you are and what you have to offer. If you’re limited to doing business within a certain geographical area, that’s a limitation that may cause you to struggle.

Category #5. You don’t fit the psychometric profile of successful business coaches.

Over the last several years, there’s been a lot of reliable research conducted on the psychometric profiles of successful business coaches. The problem is that there are very few, if any, business coaching franchisors who have examined these criteria and recruited coaches who match. The only thing they use to decide whether or not to sell you a franchise is if you have the money to pay for it. Not exactly scrupulous–but it’s the way things are. (By the way, if you go to, you can download a free report and learn more about the psychometric profile that predicts success in business coaching.)

For more great insights like these, check out The Business Coaching Franchise Buyer’s Guideand learn more about the business coaching industry and what may and may not be going well for you.

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.