Have you ever found yourself staring at another consultant’s glossy website, wondering if you’re missing something by doing it all on your own?
Maybe you’ve heard whispers about consulting franchises that supposedly offer a shortcut to success. Apparently, they come complete with proven systems, established credibility, and a ready-made coaching brand.
The question is:
Are these business coaching franchise opportunities really worth the hefty price tag, or are you better off starting your own consulting business from scratch?
In this guide, you’ll learn everything you need to know about consulting franchises compared to building your own consulting practice. Whether you’re just starting out or considering a shift in your existing consulting or coaching business, this decision could significantly impact your income and your freedom, too.
What is a Consulting Franchise?
A consulting franchise is essentially a business model where you (the franchisee) pay for the right to use an established consulting or coaching company’s brand name, methods, and systems. You can rely on their pre-existing business success to get a shortcut of your own.
Unlike an indie business coaching business where you build everything from scratch, a business coaching franchise gives you access to:
- A recognized brand name and logo
- Proprietary coaching models, materials, and/or consulting processes
- Training programs and ongoing support
- Marketing systems and sometimes lead generation
- A community of fellow franchise owners
Think of it like buying a McDonald’s versus opening your own unique burger joint. One gives you instant recognition and systems, while the other gives you complete creative control. Business growth is possible with both, but starting a new business means you need to build a brand from scratch.
Most consulting franchises fall into one of three models:
- Business consulting franchises that focus on helping small to medium-sized business owners improve operations, profitability, and growth.
- Executive consulting franchises that target corporate leaders and provide leadership development services.
- Specialized consulting franchises that focus on specific niches like sales consulting, career transition, or team development.
When you purchase a franchise, you’ll typically receive initial training, which may or may not include sales coaching. This can range from a few days to several weeks, depending on the coaching franchise you choose.
You’ll also get access to proprietary materials, ongoing support, and the right to use their established brand within your territory.
But let’s be clear. This access, as well as the right to use the brand name, comes at a price. Most business coaching franchises require an initial investment ranging from $20,000 to over $100,000, plus ongoing royalty fees that can eat into your profits.
Paperbell is the easiest way to run your consulting business! Launch a website, send proposal templates, and wow your clients with silky-smooth communication. Try it here for free.
Top 7 Consulting Franchises for Coaches and Consultants
If you’re considering the franchise route instead of starting your own business, here are 7 established consulting franchises worth exploring, along with their key details.
1. The Alternative Board (TAB)
- Franchising Since: 1996
- Franchised Units: 101
- Initial Investment: $54,000 – $97,000
- Franchise Fee: $44,000
- Royalty Fee: 12% to 20%
TAB offers a unique model that combines peer advisory boards with one-on-one coaching. This franchise appeals to coaches who enjoy facilitating group discussions and building communities of business owners.
Their model often creates more predictable recurring revenue through membership fees.
2. Entrepreneurial Operating System (EOS)
- Franchising Since: 2021
- Franchised Units: 662
- Initial Investment: $61,000 – $150,000
- Franchise Fee: $5,000
- Royalty Fee: $1,195 to $1,495 per month
You may know the EOS system through the bestselling book, Traction, by Gino Wickman. That’s how I came to learn of them. Though newer to franchising, the Entrepreneurial Operating System, which has now gained significant traction with its structured approach to business improvement.
Despite this coaching franchise being relatively new to the business coaching industry, it shouldn’t be discounted. EOS implementers help companies install a complete business operating system based on Gino Wickman’s methods. It’s perfect for small business owners as well as successful businesses who want to streamline the way they’re doing things.
3. The Entrepreneur’s Source
- Franchising Since: 1997
- Franchised Units: 186
- Initial Investment: $114,000 – $126,000
- Franchise Fee: $75,000
- Royalty Fee: 25.00%
Instead of taking a traditional business coaching approach, The Entrepreneur’s Source specializes in career ownership coaching. This involves helping clients explore franchise and business ownership options. Kind of meta!
4. The Growth Coach
- Franchising Since: 2003
- Franchised Units: 36
- Initial Investment: $54,000 – $76,000
- Franchise Fee: $39,900
- Royalty Fee: 10.00%
The Growth Coach focuses on offering both group coaching and individual business coaching services with a strategic focus. Their approach emphasizes work-life balance for business owners while improving business operations and supporting them with business management.
5. Crestcom International
- Franchising Since: 1991
- Franchised Units: 163
- Initial Investment: $92,000 – $105,000
- Franchise Fee: $75,000
- Royalty Fee: 19.75%
Crestcom International specializes in leadership training using their unique Bullet Proof Manager program. Their coaching model centers on regularly scheduled training sessions for multiple clients. This creates a scalable approach for business coaching franchise owners.
6. Leadership Management International (LMI)
- Franchising Since: 1966
- Franchised Units: 111
- Initial Investment: $20,000 – $28,000
- Franchise Fee: $15,000
- Royalty Fee: 6.00%
As one of the oldest business coaching franchises, LMI offers a time-tested approach to leadership development. It also has one of the lowest investment requirements in the industry!
7. Focal Point Coaching
- Franchising Since: 2011
- Franchised Units: 169
- Initial Investment: $34,000 – $133,000
- Franchise Fee: $45,000
- Royalty Fee: $1,950 per month
Based on Brian Tracy’s business development methods, Focal Point Coaching is a proven business model that offers a comprehensive business coaching system.
They have a focus on leadership development and performance improvement, and even experienced executives can learn from their approach.
Which Franchise to Choose: Evaluation Criteria
If you’re leaning toward the business coaching franchise route, don’t just look at the recognizable names before you make a choice. Here’s what to consider before signing that (very binding) franchise agreement.
Financial Realities
The franchise fee is just the beginning. Be sure to consider:
- Initial investment (including working capital)
- Ongoing royalty fees (as you can see from the above list, it’s typically 10-25% of revenue)
- Marketing fees (will wildly vary)
- Technology fees and required purchases
- How long until you can realistically expect to be profitable
- Whether or not you can set pricing structures the way you like
Remember that even successful franchises often include surviving franchisees who aren’t necessarily thriving or making the income they’d hoped for. So don’t just go according to franchisee numbers alone.
Alignment With Your Expertise
Does the franchise’s coaching methodology match your strengths and interests? Some franchises are highly structured with little room for personalization, while others allow more flexibility.
Ask current franchisees these crucial questions to align yourself:
- How much can you customize the coaching approach?
- How does this coaching franchise align with your career goals?
- Is the methodology effective for the types of clients you want to serve?
- Does the training adequately prepare you to deliver results you’ll be happy to charge for?
Territory Considerations
Most business coaching franchises offer some form of territory protection, which helps to protect you against competitors. Not just anyone can offer consulting services to your local business owners using the specific frameworks taught in your coaching franchise of choice.
But the details matter, such as:
- How large is your exclusive territory?
- Is it based on population or geographic boundaries?
- Are there opportunities to expand your territory later?
- How saturated is the market with similar services?
Support Structure
The quality of ongoing support can make or break your franchise experience. But in the franchise industry, this can fluctuate. Find out:
- Is there comprehensive training provided for new franchisees?
- What about ongoing training? How much of it is provided after the initial onboarding?
- How accessible is the support team when you have questions?
- Is there individual coaching provided if necessary?
- What marketing support do they provide?
- Are there regular opportunities to connect with fellow franchisees?
Creating Your Own Consulting Practice: The Alternative
Yes, franchises offer a turnkey solution. But there’s something powerful about building a coaching or consulting business that’s 100% yours.
Running your own independent coaching business means:
- Complete freedom to design your coaching frameworks
- No ongoing royalty fees eating into your profits
- The ability to pivot quickly as market conditions change
- Building equity in YOUR brand and not someone else’s
- Creating intellectual property that you fully own
But that freedom comes with the drawbacks of unique challenges. For instance, you’ll need to figure out all the tech, create your own systems, and handle the business side of coaching.
This is where platforms like Paperbell become so helpful. You get all your business systems in a box, including a beautiful website that runs with all the bells and whistles… but without the five-figure costs or royalties.
Let’s do a quick cost comparison:
Franchise Option
- Initial investment: $50,000-$100,000
- Annual royalties: $20,000-$50,000 (based on $100,000-$200,000 revenue)
- Marketing fees: $2,000-$10,000 annually
- Technology fees: Varies
Independent with Paperbell:
- Website setup: $0 (included)
- Client management systems: $0 (included)
- Payment processing: Standard merchant fees only
- Paperbell subscription: $57/month or $570/year
- Marketing costs: Depends on your budget (you can find free ways to get consulting clients)
- Total annual cost: Under $600
The difference is stark. With a coaching franchise, you might be paying tens of thousands annually for systems and brand recognition. With Paperbell, you keep those funds as profit while still having professional systems in place.
FAQs About Consulting Franchises
Do I need an LLC to start a consulting business?
While legal requirements vary from place to place, forming an LLC is generally recommended for consulting businesses to protect your personal assets. Most franchisors will require some form of business entity before allowing you to purchase a franchise.
Who is the #1 business coach?
There’s no single “number one” business coach because effectiveness depends on specialty, client fit, and goals. Well-known figures include Tony Robbins, Jay Abraham, and Marshall Goldsmith.
What do you need to open a consulting franchise?
Beyond the financial investment, most consulting franchises require business experience, sales aptitude, and alignment with their coaching methodology. You’ll need enough capital for both the franchise purchase and 6-12 months of operating expenses.
How much money does it cost to license a consulting franchise?
Initial licensing fees typically range from $20,000 to $100,000, depending on the franchise’s brand recognition and territory size. Total startup costs including working capital usually range from $50,000 to $250,000, with additional ongoing royalty fees of 10-25% of your gross revenue.
Should I start a consulting franchise?
A consulting franchise may be right for you if you value proven systems over creative freedom, prefer following established methods rather than creating your own, and have sufficient capital for the initial investment.
The Bottom Line: Franchise or Independence?
For all the glossy brochures and success stories, consulting franchises come with significant costs and restrictions that many coaches eventually find limiting.
Yes, they do provide structure and support. But modern coaching software makes it easier than ever to build a professional, streamlined coaching website with all the tools that you need without surrendering your independence or paying ongoing royalties.
If you’re ready to build a coaching business that’s truly yours, with all the systems and none of the franchise fees, Paperbell gives you everything you need in one simple platform.
Try it free and see how easy independent coaching can be.
