What should I check before buying a business coaching franchise resale?
Before buying a coaching franchise resale, check whether the clients are under agreement or follow the selling coach, how new leads arrive, what training and certification you would need, what the territory covers, and how the franchisor approves and transfers the unit. A coaching unit is closely tied to its owner, so those answers matter more than the equipment or the premises.
A coaching or consulting franchise sells expertise, not product. When one changes hands, much of what the seller built lives in relationships with people, not in a shop or a stockroom. That makes the usual resale checklist a little different. Here are the points that tend to matter most, so you can ask for them early and in writing.
Who the clients really belong to
Ask how many clients are under a current agreement, how long those agreements run, and whether they can be assigned to a new owner. Then ask the harder question: would these clients stay if the selling coach left? Some stay for the brand and the method. Others stay for the person. Speak with a few clients, with the seller’s permission, if you can.
Where new work comes from
Find out how leads arrive. Some come from the franchisor’s marketing, some from referral partners, and some from the owner’s own networking and speaking. The last kind does not transfer easily. Ask which share of recent clients came from each source, and what the seller did every week to keep the pipeline full. You will have to do that work yourself.
Training, territory and approval
Ask whether the brand requires the new owner to complete training or certification before taking over, and how long that takes and who pays. Confirm exactly what territory you would hold, and whether the franchisor can sell nearby. Ask the franchisor in writing what its approval and transfer steps are, and what fees or conditions come with them.
A franchise lawyer should read the agreement and any disclosure documents before you commit. Our page on what you own when you buy a franchise explains the general picture, and choosing a lawyer for a purchase can help you find the right one.
Related reading
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Sources
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- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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