A recent press release announcing a “$7.6 million Franchise Giveaway” by ActionCoach, formerly known as Action International, is causing me to have major neck pain.
I mean it; whenever I get really stressed-out over something….really angry…the muscles located in the back of my neck do the herky-jerky. (As I write this, my wife is being kind enough to bring my Shiatsu Turbo-Massage thingy up to my nicely-equipped home office. ) Thanks, Jeannine!
(Notice the Shiatsu Massager?)
So, I’m reading this press release, and the first thought I had was; how dare they…
How can this franchisor, (in good conscience) announce this?
“ActionCOACH, the world’s number one business and executive coaching company, has launched a program that will provide business opportunities to 100 military veterans, through its Free Franchise for the Forces program, which will give away $7.6 million in free franchises to 100 eligible veterans in select U.S. states.”
Now, my neck isn’t getting all twisted up because ActionInternational is giving away 100 free franchises to veterans. I’m angrily writing this post because the franchise salespeople at ActionInternational will pretty much have nothing to do.
That’s because, for the most part, military veterans, especially the ones who will be soon coming back home from dreamy places like the Iraqi desert, and the ultra-modern tribal communities of Afghanistan, will have;
A. No money
B. No executive-level sales skills
ActionInternational is taking care of the $70,000+ in start-up costs, and that’s great, but I just don’t see these folks as executive business coaches. They may inquire about these “free franchises,” but they won’t get very far through the franchise buying process.
The franchise information area of the ActionCoach website describes what they’re looking for in a franchisee;
“A Practice is a ‘single coach’ business model that offers both a solid business and a great work-from-home lifestyle with a lower overhead and stress level. It provides an opportunity for those with an executive leadership or business ownership background to directly transfer the skills they have developed over their careers into a business opportunity where the value they provide to their clients is amplified by the ActionCOACH Tools and Systems.”
Did you read the part about “executive leadership?” Or, a “business ownership background?”
Now, in case you don’t know, a coaching franchise is an executive-level franchise model that requires a serious amount of sales skills; you can’t be a coach unless you have someone to coach. You have to find your own clients! Read All About Coaching Franchises
It would be wrong for me to say that all military veterans don’t come from executive-level backgrounds. It would even be worse if I stated that military veterans weren’t ever business owners.
Because, I’m sure that Brad Sugars (The big boss of ActionCoach) would never want to award franchises to the wrong people.
http://www.ripoffreport.com/franchisors/brad-sugars-actionco/brad-sugars-actioncoach-ac-yf669.htm
The thing that’s really requiring me to have an electric Shiatsu massage at this juncture is not that fact that some veterans may be awarded franchises that they have no chance in heck of succeeding in; it’s the fact that the executives at ActionCoach have seemingly made a conscious decision to use the men and women who make it possible for ActionCoach and franchises like them to even have the right in the first place to offer their franchises all over the US (the land of the free) for some cheap PR.
These guys will never give away 100 franchises to veterans. That’s because almost all military veterans aren’t usually the right fit for a coaching franchise. And how do I know, you ask?
I’ve worked with lots of veterans over the years in an advisory role, and have even helped some of them get into franchising. I can’t remember one time in which a consulting/sales franchise was ever on my list of ideas to present to them.
Ask anybody in the franchise industry about veterans. Ask them what types of franchises they usually go for, and tend to be a fit for.
Let me know what you hear.
Anyway, the ActionCoach Franchise Giveaway made for a nice press release. Kudos to them for that.
Do you agree with me on this? Or, am I living in Shiatsu Land?
Do you have a plan, franchise buyers?
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Just want to add to those looking to buy an actioncoach franchise, AT LEAST first do searches including the words ‘scam’, ‘ripoff’, and blu mau mau so that you can make an informed decision. I was a franchisee with actioncoach and it’s amazing how much dishonesty there is in the selling of these franchises. Huge money involved for those that sell them. Watch out. They’ve got very smart and talented people working to get that $75-$100k out of your pocket.
Good article Joel! And oh by way… does their business fundamentally make money? Ah… that would be a significant NOT! I tell people to run away from ActionCoach – They’re hacks!
Lonnie Helgerson, CFE
Thanks, Lonnie!
I call em like I see em. (Plus, I know of 4 people that failed as franchisees)It’s nice to know that some folks agree with me–on occasion.I know who DOES like them; the franchise brokers who made huge $$ selling area development deals.JL
Joel, You helped my wife Margie and I get into a franchise business almost 9 years ago. We are very happy with our decision and your advice and help.
I wholeheartedly agree with your comments.
Being a Retired Army Officer, I recognize that there are many educated and intelligent Veterans out there. They may have lots of experience in many areas, but I think not much in Sales development. There are and have been many who have learned and developed these skills, but I do not think they would be able to go in and successfully coach a business from the start. My wife has an MBA and in our business, we have worked with an Action coach and he was and still is extremely valuable in helping us improve our business.
I just do not see where Military experience would really apply all that well in coaching someone to be successful in business without the specific business knowledge and experience. It seems that with the popularity of and emphasis on the support of our troops, some are simply taking advantage of that situation. It is great PR though, I have to admit.
Ray!
Thanks for popping by…
I’m so happy for you guys.
And proud of you, and how you’ve grown your business, too!
Joel
As a former owner of this franchise for 5 years, I can tell you there is no way in hell Brad Sugars and co are doing this to be charitable. Brad is ONLY interested in more money and this kind of crap drives me nuts. A few years ago they passed around a form to ask if we franchisees were interested in donating our time to coach a non profit organization. It only asked if we were interested. Within a few days there were all sorts of PR articles going out that action crotch had donated $1.6 Million dollars worth of coaching services to non-profits!! What a jack ass. That guy has no morals- I know him well enough to know with 100% certainty that this type of thing is only for their good- and it makes me furious that they would stoop to this level. I’d be willing to bet ANYTHING that the franchises they were considering giving away are not new, but those of the franchisees that are or have failed, so that they can count them as “sold” franchises and it looks like their franchisees are more successful than they are (they have to report how many franchises closed in their annual FDC report). They do that all the time. When my 5 years came up, they asked me to buy the remaining 3 years of another failing coach’s agreement.
If you’re looking at this franchise: stay away! They failure rate is enormous. I was one of about 5-10% that made it thru the 5 year agreement. Do a google search for “coaches who left action” and you’ll see that they lose 200 coaches on average per year- which is about how many they sell- and those are NOT good odds!
Hi Jimmy,
Thanks for chiming in.
When I was a franchisee of Frannet-the franchise brokerage that my late father was with–and I, too, joined, the higher-ups thought that it would be great to have Brad Sugars-the CEO of Action as a speaker.
I was looking forward to hearing this goof, if only to confirm my suspicions.
He did. Easily.
JL
Gini,
Thanks for popping. By.
As a matter of fact, the CEO of Yellow Dog asked me very nicely if I would do a short post to help give it away!
I’ve been involved in other franchise giveaways, but the one that this coaching franchise is (not) doing is ridiculous.
I’m surprised that Brad Sugar’s and his henchmen from ActionCoach haven’t tried to spam this post yet.
JL
🙂
So listen to this. Yellow Dawg Striping held a Facebook contest to giveaway ONE franchise to a military veteran. Where do you think ActionCoach got the idea?!?
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🙂