Action Coach 2013 PDF
Action Coach 2013 PDF
Action Coach 2013 PDF
EXHIBIT D
To
BUSINESS COACH
For
O The FIRM
O The Practice (5 Year)
O The Practice (Premium)
RECITALS
A Franchise Owner is a franchisee of Master Licensee with respect to either (i) an individual
ActionCOACH business coaching franchise under a Practice Business Coach Franchise
Agreement ( BCFA ) or (ii) as FIRM business coaching franchise under a FIRM Business
Coach Agreement The Practice or FIRM at issue is referred to as the Franchise Agreement
B Both the Firm Franchise Agreement and the Practice Business Coach Franchise Agreement
permits only one (1) person at a time to act provide Coaching Services to Clients of the
Business as a Nominated Business Coach and permits the Franchise Owner under certain
circumstances to appoint a Nominated Business Coach in lieu of Franchise Owner
C Franchise Owner wishes to appoint NBC as Nominated Business Coach under the Franchise
Agreement effective as of fAppointment Datel ( Appointment Date )
D Master Licensee has approved the appointment of NBC and NBC has either completed the
training required by ActionCOACH North America LLC ( Franchisor) or will complete such
training prior to providing any Coaching Services under the Franchise Agreement
DEFINITIONS
11 Unless otherwise defined in this Agreement all capitalized terms used in this Agreement have
the same meaning as in the Franchise Agreement
21 Franchise Owner appoints NBC as the Nominated Business Coach for the Business effective as
of the Appointment Date
22 Effective as of the Appointment Date NBC shall have full responsibility for all operations of
the Business and shall have the authority to speak for and bind Franchise Owner in any
dealings with Master Licensee or Franchisor
(a) ensure that NBC is at all times trained at the cost of Franchise Owner in the
delivery of the Coaching Services to the reasonable satisfaction of Master
Licensee and Franchisor and
(b) ensure that NBC delivers the Coaching Services strictly in accordance with
the System, including the Manuals and strictly in accordance with the
requirements of the Franchise Agreement
32 Franchise Owner shall compensate NBC for his or her services as separately arranged
between them The form of the arrangement must generally conform to Franchisors then-
current remuneration model or as otherwise agreed in writing by Master Licensee
33 Franchise Owner acknowledges that its indemnity obligation under the Franchise Agreement
applies to any loss or claim suffered by Master Licensee Franchisor or ActionCOACH IPCo
Ltd (which together with Franchisor shall be collectively referred to as Licensor) or any of their
respective affiliates in consequence of
(a) NBC not strictly observing or performing his or her obligations under this
Agreement or
NBC'S OBLIGATIONS
41 NBC acknowledges that (i) as the Nominated Business Coach for the Business he or she
will be given access to the System (ii) the contents of the System are confidential and are
proprietary to Licensor and (iii) Franchise Owner has been licensed by Master Licensee to
use the System subject to the terms of the Franchise Agreement NBC represents that he or she
has received and read a copy of the Franchise Agreement and agrees to be bound by its
provisions
42 Personal Liability
(i) use the Confidential Infomnation for any purpose other than
carrying out his or her obligations under this Agreement and the
Franchise Agreement or
(c) NBC agrees that (i) with respect to NBC the two (2) year period specified in
Section 16 2 of the Franchise Agreement shall run from the date on which
NBC ends his or her association with Franchise Owner and (ii) the non
competition obligations imposed by Section 16 of the Franchise Agreement
are reasonable as to duration geographical area and restrained conduct and
extend no further than is reasonably necessary to protect the legitimate
interests of Franchise Owner Master Licensee Franchisor and Licensor NBC
represents that such restrictions will not prevent NBC from earning a living after
ending NBC s association with Franchise Owner
(i) damages are not a sufficient remedy for any breach of this
section
NBC must carry out his or her activities as the Nominated Business Coach for the Business in
accordance with the methods and procedures prescribed in the Manuals and in all supplemental
bulletins and notices from Master Licensee or Franchisor NBC acknowledges that compliance with
the System and the Manuals is essential to preserve maintain and enhance the reputation and
goodwill built by the System
51 No Further Involvement
NBC agrees that he or she will not provide Coaching Services to Clients of the Business after the
end of NBCs service as Nominated Business Coach under the Franchise Agreement
NBC acknowledges his or her personal obligations under the Franchise Agreement particularly
those in relation to confidentiality and non-com petition (Sections 15 and 16) and agrees to continue to
comply with such obligations after the end of NBC s service as Nominated Business Coach under the
Franchise Agreement During the Term of this Agreement you may not either directly or indirectly
through any other person or entity participate in be employed by act as a coach to provide financial
assistance to or acquire any interest in any business that offers business coaching and mentoring
services ( Competing Business") to clients in the U S A This restriction in Section 16 1 will also apply for
a continuous two (2) year period after the expiration or termination of this Agreement or after a transfer
approved under Section 20 but only as to clients in the Master Licensees Territory and within one
hundred (100) miles of the Master Licensee's Territory In addition for two (2) years after the expiration
termination or approved transfer of this Agreement you will not solicit for the benefit of any Competing
Business any person who was a Client of the Business during the two (2) years immediately before
expiration termination, or transfer Dunng the term of this Agreement and for a continuous two (2) year
period after its expiration or termination or after a transfer approved under Section 20 you may not
employ or otherwise interfere with the employment relationship of any person who is employed by
Licensor Franchisor or Master Licensee In the event of a breach of the provisions of Sections 15 or 16
of the Franchise Agreement or this Section 5 2 Franchisor shall be entitled to liquidated damages from
you in the amount of Two Hundred Fifty Thousand Dollars (US$250 000 00) You expressly agree that
this amount is not a penalty but a reasonable estimate of the damages that would result from any such
breach In the event that legal action becomes necessary for the enforcement of any of the provisions of
Sections 15 or 16 of the Franchise Agreement or this Section 5 2 or to collect the liquidated damages
provided herein the prevailing party shall receive in addition to any other damages or relief awarded its
reasonable attorney s fees together with appropriate costs and interest You agree that in the event of a
breach of any of the provisions of Sections 15 or 16 Franchisor shall be entitled to recover injunctive
relief as well as liquidated damages and that the liquidated damages provision included herein does not
provide' Franchisor with an adequate remedy at law for any such breaches which you may commit If a
court or arbitrator determines that any restnction or provision in this Section 16 stnctly applied would be
invalid or unenforceable then the restriction or provision will be deemed modified to the extent necessary
(but only to that extent) to make it valid and enforceable If a dispute regarding enforceability of Section
16 2 or 16 3 IS resolved in favor of Master Licensee and Franchisor the two (2) year period (or the period
deemed to be reasonable by the court or arbitrator) will run from the date of the order permitting its
enforcement
GENERAL PROVISIONS
61 No Waiver
No provision of this Agreement may be waived or varied except in writing signed by the party who is to
be bound None of the following things will preclude Master Licensee from insisting upon strict
compliance by another party with the provisions of this Agreement
(a) Master Licensees failure to take advantage of any default or breach of any
provision of this Agreement
(b) any custom or practice which may develop between the parties
62 Partial invalidity
63 Governing Law
This Agreement is governed by the laws of the state in which Franchisor has its principal office
64 Further Assurance
Each party must do sign execute and deliver all acts and documents reasonably required of it or
them by notice from another party effectively to carry out and give full effect to this Agreement and
the rights and obligations of the parties under it
FRANCHISE OWNER - [Name of Franchise Owner]
EXHIBIT E
To
BUSINESS COACH
BACKGROUND
We are an ActionCOACH Business Coach franchisee of [Name of Master Licensee] ( Master
Licensee ) under a Business Coach Franchise Agreement dated fPatel We have a license to
use the Marks the System and the Confidential Information owned by ActionCOACH IPCo Ltd and
licensed to ActionCOACH North America LLC (collectively Licensof) Master Licensee
recognizes that in order to effectively operate our business we must give our business
coaches and employees access to certain confidential information and trade secrets owned by
Licensor Disclosure of this confidential information and trade secrets to unauthorized persons
or Its use for any purpose other than the operation of our business would harm us Master
Licensee Licensor other franchise owners and ActionCOACH North America LLC
( Franchisor") Accordingly Master Licensee requires us to have you sign this Agreement
AGREEMENT
1 As used in this Agreement Confidential Information means all manuals trade secrets
know how methods training matenals information recruiting techniques accounting
procedures control procedures and marketing techniques relating to the
ActionCOACH business coaching and mentoring business and system In addition
Confidential Information includes all marketing plans advertising plans business plans
financial information client information employee information and other proprietary
information of Licensor Franchisor Master Licensee or us (collectively the Interested
Parties ) that you obtain during your association with us
2 You agree not to disclose any Confidential Information to anyone outside of our organization
(other than the Interested Parties) and not to use any Confidential Information for any
purpose except to carry out your duties as our employee You also agree not to claim any
ownership in or nghts to Confidential Information and not to challenge or contest Licensors
ownership of it These obligations apply both dunng and after your association with us
3 If your association with us ends for any reason you must return to us all records described in
Paragraph 1 all other Confidential Information and any authorized or unauthorized copies of
Confidential Information that you may have in your possession or control You may not
retain any Confidential Information after your association with us ends
4 You may not during your association with us without our pnor written consent
5 Paragraph 4 will continue to apply for (a) two (2) years if you are a Business Coach and (b)
one (1) year if you are an Employee after your association with us ends regardless of the
reason that your association with us ends However Paragraph 4(a) will only continue to
apply to businesses operating in the geographic area where you performed work for us
In addition for two (2) years after your association with us ends you may not solicit for
the benefit of any Competing Business any person who was a client of our business during
the two (2) years immediately before your disassociation
6 You may not attempt to circumvent the restrictions in Paragraphs 1 through 5 by engaging in
prohibited activity indirectly through any other person or entity
7 If you breach or threaten to breach any part of this Agreement you agree that we will be
entitled to injunctive relief (without posting bond) as well as a suit for damages
8 If any part of this Agreement is declared invalid for any reason the invalidity will not affect
the remaining provisions of this Agreement If a court finds any provision of this Agreement to
be unreasonable or unenforceable as written you agree that the court may modify the
provision to make it enforceable and that you will abide by the provision as modified
9 This Agreement is independent of any other obligations between us This means that it is
enforceable even if you claim a breach of any other agreement understanding commitment
or promise between you and us
10 You are signing this Agreement not only for our benefit but also for the benefit of Licensor
Franchisor and Master Licensee Licensor Franchisor and Master Licensee have the right to
enforce this Agreement directly against you
12 Your obligations under this Agreement cannot be waived or modified except in writing
13 This Agreement is governed by the laws of the state in which our principal office is located
14 If we have to take legal action to enforce this Agreement, we will be entitled to recover
from you all of our costs including reasonable attorneys fees to the extent that we
prevail on the merits
15 You certify that you have read and fully understood this Agreement and that you entered
into It willingly
EMPLOYEE Witness
EXHIBIT F
To
BUSINESS COACH
RELEASE
condition of transfer or renewal of the Business Coach Franchise Agreement dated [date of BCFA]
representatives and all other persons acting on his/its behalf or claiming under him/it (collectively the
"Franchisee Releasors") hereby releases and forever discharges Master Licensee ActionCOACH
North America LLC and ActionCOACH IPCo Ltd and their respective past and present officers
insurers representatives predecessors successors and assigns and each of them from any and
all claims debts liabilities demands obligations costs expenses suits actions and causes of
(collectively "Claims") that the Franchisee Releasors ever had now have, or may in the future
have arising out of or relating to any act, omission or event occurring on or before the date of this
Release
2 Risk of changed facts The Franchisee Releasors understand that the facts in
respect of which the release in Section 1 above is given may turn out to be different from the facts
now known or believed by the parties to be true The Franchisee Releasors hereby accept and
assume the risk of the facts turning out to be different and agree that its release shall nevertheless
be effective in all respects and not subject to termination or rescission by virtue of any such
difference in facts
3 No prior assionment Franchisee represents and warrants that he/she/it is the sole
owner of all Claims and rights released by Franchisee hereunder and that Franchisee has not
assigned or transferred or purported to assign or transfer to any person or entity any Claim released
4 Covenant not to sue Franchisee (on behalf of the Franchisee Releasors) covenants
Release-03/13
not to initiate prosecute encourage assist or (except as required by law) participate in any civil
criminal or administrative proceeding or investigation in any court agency or other forum either
affirmatively or by way of cross-claim defense or counterclaim against any person or entity released
under Section 1 above with respect to any Claim released under Section 1 above
complete defense to any Claim released under Section 1 above and (ii) consents to the entry of a
temporary or permanent injunction to prevent or end the assertion of any such Claim
represents and warrants that Franchisee has authorized that person to enter into this Release on
behalf of Franchisee Franchisee represents and warrants that it has the authority to enter into this
Release not only on its own behalf but also on behalf of the other persons and entities to be bound by
Its signature
7 Successors and assigns This Release will mure to the benefit of and bind the
IN WITNESS WHEREOF Franchisee has executed this Release as of the date first above written
FRANCHISEE
Name]
If Franchisee is an entity indicate Position/Title of signatory here]
Release - 03/13
ActionCOACH business coaching
EXHIBIT G
To
BUSINESS COACH
COMPLIANCE QUESTIONNAIRE
You are preparing to enter into an ACTIONCOACH Business Coach Franchise Agreement with
Master Licensee { we or us ) The purpose of this Questionnaire is to confirm that you understand
the temis of the contract and that no unauthorized statements or promises have been made to you
Please review each of the following questions and statements carefully and provide honest and
complete responses to each
1 When and where did you have your first face-to-face meeting with our representative(s)'?
Name(s)
Have you personally read the ActionCOACH Business Coach Franchise Disclosure Document
(FDD)?
Yes No
Did you give us a signed receipt for the copy of the FDD that we fumished to you?
Yes No
If not what parts of the FDD do you not understand? (Attach additional pages if necessary )
6 Have you personally read the Business Coach Franchise Agreement (the Agreement)"?
Yes No
Yes No
If not what parts of the Agreement do you not understand"? (Attach additional pages if
necessary)
Has any of our representatives recommended that you have the FDD and agreements
reviewed by an attorney or other professional advisor"?
Yes No
Have you in fact discussed the FDD the agreements and the benefits and risks of
operating an ACTIONCOACH Business Coach franchise with an attorney accountant or
other professional advisor?
Yes No
Yes No
a The amount of money that others have made or that you may earn as a Business
Coach?
Yes No
c The costs you may incur in operating the Business Coach franchise"?
Yes No
Yes No
11 If your answer to any part of Question 10 is yes" please describe the statement or
representation Please include when where and by whom the statement or representation
was made Please provide full details in the following space (Attach additional pages, if
necessary)
12 Have you contacted any existing Business Coaches about their financial performance"?
Yes No
13 If your answer to Question 12 is yes please describe the type of information that they
shared with you in the following space (You do not need to identify the Business Coaches
with whom you spoke )
14 Please think about the statements or promises made to you by our employees (or by any
other person purporting to speak on our behalf) concerning the advertisina. marketing,
trainino. support, or assistance that we will furnish to you Were any such statements or
promises contrary to or different from the information contained in the FDD"?
Yes No
16 Before today have you entered into any agreement with us concerning our franchise
opportunity^
17 Have you paid any money to us before today in connection with our franchise opportunity'?
18 In entering into the Agreement are you relying on any statement promise or assurances by
us, or by anyone speaking or purporting to speak on our behalf other than the terms of the
Agreement itself? If Yes please provide full details in the following space (Attach
additional pages if necessary )
19 Would you agree that the success or failure of your Business Coach franchise will depend in
large part upon your own skills and abilities competition from other businesses interest
rates inflation labor and supply costs lease terms and other economic and business
factors'?
Yes No
Compliance Questionnaire 03 13
22 Have you selected a specific office location from which you propose to operate the Business
Coach franchise'
Yes No
23 Do you have personal knowledge of the market area in which you will operate'
Yes No
24 Did you obtain advice from anyone other than our representatives in selecting your market
and/or your office location'
Yes No
25 Have all of your questions concerning your proposed investment in a Business Coach
franchise been answered to your satisfacton'
Yes No
FRANCHISE APPLICANT
Date
Compliance Questionnaire 03 13
Cal EA.SI Project (2180-11)
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ACtionCOACH business coaching
EXHIBIT H
To
BUSINESS COACH
INFORMATION REQUIRED
BY THE STATE OF CALIFORNIA
The following information is added to the disclosure document for California residents
See the cover page of the disclosure document for the ActionCOACH North Amenca LLC website
address THE WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA
DEPARTMENT OF BUSINESS OVERSIGHT ANY COMPLAINTS CONCERNING THE
CONTENTS OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT
OF BUSINESS OVERSIGHT AT wvwvdbo ca GOV
item 3. Additional Disclosure The following is added to Item 3 of the disclosure document
Neither we nor any person identified in Item 2 above is subject to any currently effective
order of any national secunties association or national securities exchange (as defined in
the Secunties and Exchange Act of 1934 15 U S C § 78a et seq) suspending or expelling
such person from membership in such associaton or exchange
Item 17. Additional Disclosures The following is added to Item 17 of the disclosure document
Califomia Business and Professions Code Sections 20000 through 20043 provide nghts to
the franchisee concerning termination or non-renewal of a franchise If the Franchise
Agreement contains a provision that is inconsistent with the law the law will control
The Franchise Agreement provides for termination upon bankruptcy This provision may
not be enforceable under federal bankruptcy law (11 U S C § 101 ef seq )
The Franchise Agreement contains a covenant not to compete which extends beyond the
termination of the agreement This provision may not be enforceable under California law
The Franchise Agreement contains a liquidated damages clause Under California Civil
Code 1671, certain liquidated damages clauses are unenforceable
The Franchise Agreement requires applicaton of the laws of the state of Nevada This
provision may not be enforceable under California law
The Franchise Agreement requires binding arbitration The arbitration vwll occur in Las
Vegas Nevada if you initiate the proceeding or in the Temtory if we initate the proceeding
with the costs being bome by the losing party Prospective franchisees are encouraged to
consult pnvate legal counsel to determine the applicability of California and federal laws
(such as Business and Professions Code Section 20040 5, Code of Civil Procedure
Section 1281 and the Federal Arbitration Act) to any provisions of a franchise agreement
restncting venue to a forum outside the State of California
Section 31125 of the Califomia Corporations Code requires us to give you a disclosure document
in a form containing the information that the commissioner may by rule or order require before a
solicitation of a proposed matenal modification of an existing franchise
The financial performance representation figures do not reflect the costs of sales operating
expenses or other costs or expenses that must be deducted from the gross revenue or
gross sales figures to obtain your net income or profit You should conduct an independent
investigation of the costs and expenses you will incur in operating your franchise business
Franchisees or former franchisees listed in the franchise disclosure document, may be one
source of this information
INFORMATION REQUIRED
BYTHi STAT^ OF HAWAII
The following information is added to the disclosure document for Hawaii residents
THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT
LAW OF THE STATE OF HAWAII FILING DOES NOT CONSTITUTE APPROVAL,
RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND
CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND
CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE
AND NOT MISLEADING
The name and address of the agent in this state authonzed to receive service of process on behalf
of ACNA IS Commissioner of Secunties Department of Commerce and Consumer Affairs 335
Merchant Street Room 203 Honolulu Hawaii 96813
Item 17. Additional Disclosures The following is added to Item 17(v) and (w) of the disclosure
document
The Illinois Franchise Disclosure Act requires that Illinois law apply to any claim ansing
under the Illinois Franchise Disclosure Act
The conditions under which your Franchise Agreement can be terminated and your nghts
upon non-renewal may be affected by Sections 19 and 20 of the Illinois Franchise
Disclosure Act
Pursuant to Section 4 of the Illinois Franchise Disclosure Act any provision in the
Franchise Agreement that designates junsdiction or venue for litigation in a forum outside of
Illinois IS void with respect to any cause of action which otherwise is enforceable in Illinois
INFORMATION REQUIRED
BY THB STATB QF MARYUNP
The following is added to the disclosure document for Maryland residents
Hem 17. Additional Disclosures The following is added to Item 17 of the disclosure document
The Franchise Agreement provides for termination upon bankruptcy This provision may
not be enforceable under federal bankruptcy law (11 U S C § 101 ef seg)
Any choice of forum for litigation is subject to your nght to bnng an action under the
Maryland Franchise Registration and Disclosure Law in Maryland
Any claims ansing under the Maryland Franchise Registration and Disclosure Law must be
brought within three (3) years after the grant of the franchise
INFORMATION REQUIRED
THE STATE OF MICHIGAN
Each of the following provisions is void and unenforceable if contained in any document relating to
a franchise
(c) A provision that permits a Franchisor to terminate a franchise pnor to the expiration of
Its term except for good cause Good cause shall include the failure of the franchisee to comply
with any lawful provision of the franchise agreement and to cure such failure after being given
written notice thereof and a reasonable opportunity w/hich in no event need be more than 30 days
to cure such failure
(d) A provision that permits a Franchisor to refuse to renew a franchise without fairly
compensating the franchisee by repurchase or other means for the fair market value at the time of
expiration of the franchisees inventory supplies equipment fixtures and furnishings
Personalized matenals which have no value to the Franchisor and inventory supplies equipment
fixtures and fumishings not reasonably required in the conduct of the franchise business are not
subject to compensation This subsection applies only if (i) The term of the franchise is less than
5 years and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to
conduct substantially the same business under another trademark service mark, trade name
logotype advertising or other commercial symbol in the same area subsequent to the expiration of
the franchise or the franchisee does not receive at least 6 months advance notice of Franchisor's
intent not to renew the franchise
(e) A provision that permits the Franchisor to refuse to renew a franchise on terms
generally available to other franchisees of the same class or type under similar circumstances
This section does not require a renewal provision
(f) A provision requinng that arbitration or litigation be conducted outside this state This
shall not preclude the franchisee from entenng into an agreement at the time of arbitration to
conduct arbitration at a location outside this state [Note ACNA reserves the nght to challenge
the restnction on the location of arbitration, as it applies to arbitration under the Federal
Arbitration Act ]
(i) The failure of the proposed transferee to meet the Franchisor's then current
reasonable qualifications or standards
(ii) The fact that the proposed transferee is a competitor of the Franchisor or
subfranchisor
(iv) The failure of the franchisee or proposed transferee to pay any sums owing to the
Franchisor or to cure any default in the franchise agreement existing at the time of
the proposed transfer
(h) A provision that requires the franchisee to resell to the Franchisor items that are not
uniquely idenhfied with the Franchisor This subdivision does not prohibit a provision that grants to
a Franchisor a right of first refusal to purchase the assets of a franchise on the same terms and
conditions as a bona fide third party willing and able to purchase those assets nor does this
subdivision prohibit a provision that grants the Franchisor the nght to acquire the assets of a
franchise for the market or appraised value of such assets if the franchisee has breached the lawful
provisions of the franchise agreement and has failed to cure the breach in the manner provided in
subdivision (c)
(i) A provision which permits the Franchisor to directly or indirectly convey assign or
otherwise transfer its obligations to fulfill contractual obligatons to the franchisee unless provision
has been made for providing the required contractual services
THE FACT THAT THERE IS A NOTICE OF THIS OFFERING ON FILE WITH THE ATTORNEY
GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION, OR ENDORSEMENT
BY THE ATTORNEY GENERAL
Any questions regarding this Notice shall be directed to the Department of Attomey General
Consumer Protection Division 670 Law Building 525 West Ottawa Street Lansing Ml 48913
(517) 373-7117
INFORMATION REQUIRED
BY THE STATE OF MINNESOTA
The following is added to the disclosure document for Minnesota residents
Notwithstanding the foregoing we will indemnify you against liability to a third party
resulting from claims that your use of the Marks infnnges trademark nghts of the third party
provided however that we will not indemnify you against the consequences of your use of
the Marks unless that use is in accordance with the requirements of the Franchise
Agreement
We will comply with Minn Stat § 80C 14 subdivisions 3 4 and 5 which require except in
specified circumstances that you be given 90 days notice of termination (with 60 days to
cure) and 180 days notice for non-renewal of the Franchise Agreement
Minnesota Rule 2860 4400D prohibits us from requinng you to assent to a release
assignment novaton or waiver that would relieve any person from liability imposed by
Minn Stat §§800 01-800 02
Pursuant to Minn Stat § 80C 21 and Minn Rule Part 2860 4400J the choice of law
provision in the Franchise Agreement shall not in any way abrogate or reduce any nghts of
the franchisee as provided for in Minnesota Statutes Chapter 80C
INFORMATION REQUIRED
BY THE STATE OF NEW YORK
The following is added to the disclosure document for New York residents
Cover page. Additional Disclosures The following is added to the cover page
1 Neither AGNA nor any of its predecessors nor any person identified in Item
2 above nor any affiliate offering franchises under our trademarks has any
administrative, cnminal or a matenal civil or arbitration action pending against him
alleging a violation of any franchise law fraud embezzlement fraudulent conversion
restraint of trade unfair or deceptive practices misappropnation of property or comparable
allegations
2 Neither AGNA nor any of its predecessors, nor any person identified in Item
2 above nor any affiliate offenng franchises under our trademarks has been convicted of
a felony or pleaded nolo contendere to any other felony charge or, dunng the ten-year
penod immediately preceding the applicafion for registrafion been convicted of a
misdemeanor or pleaded nolo contendere to any misdemeanor charge or been found liable
in an arbitration proceeding or a civil action by final judgment or been the subject of
any other material complamt or legal or arbitration proceeding if such misdemeanor
conviction or charge civil action complaint or other such proceeding involved a violation of
any franchise law secunties law fraud embezzlement fraudulent conversion restraint of
trade unfair or deceptive practces misappropnation of property or comparable allegation
Neither ACNA nor any of its predecessors affiliates officers or general partners dunng
the 10-year penod immediately before the date of the disclosure document (a) filed as
debtor (or had filed against it) a petition to start an action under the U S Bankruptcy
Code (b) obtained a discharge of its debts under the Bankruptcy Code or (c) was a
principal officer of a company or a general partner in a partnership that either filed as a
debtor (or had filed against it) a petition to start an action under the U S Bankruptcy
Code or that obtained a discharge of its debts under the U S Bankruptcy Code dunng or
within one year after the officer or general partner held this position in the company or
partnership
We use franchise fees to defray our costs of offenng franchises and assisting Master
Licensees to start business A portion of the franchise fees may be profit to us
We will not assign our nghts under the Franchise Agreement except to an assignee who in
our good faith and judgment is willing and able to assume our obligations under the
Franchise Agreement
You must sign a general release if you enter a successor Franchise Agreement or if you
transfer your franchise These provisions may not apply to any liability under the New York
Franchise Law
The New York Franchises Law requires that New York law govern any cause of action
which anses under the New York Franchises Law
The New York General Business Law Article 33 Sections 680 through 695 may supersede
any provision of the Franchise Agreement inconsistent with that law
You may terminate the Franchise Agreement upon any grounds available by law
There are circumstances in which an offenng made by us would not fall within the scope of the
New York General Business Law Article 33 such as when the offer and acceptance occurred
outside the state of New York However an offer or sale is deemed made in New York if the
franchisee is domiciled in or if the franchise will be opened in New York We are required to fumish
a New York prospectus to every prospective franchisee who is protected under the New York
General Business Law Article 33
Additional State Required Info - 03 13
INFORMATION REQUIRED
BY TH^ STAT^ OF NQRTH CARQInlNA
The following is added to the disclosure document for North Carolina residents
Cover Page The following is inserted as the first page of this disclosure document
The State of North Carolina has not reviewed and does not approve recommend endorse
or sponsor any business opportunity The information contained in this disclosure
document has not been venfied by the State of North Carolina If you have any questions
about this investment see an attorney before you sign a contract or agreement
INFORMATION REQUIRED
BY THE STATE OF NORTH DAKOTA
The following is added to the disclosure document for North Dakota residents
Pursuant to the North Dakota Franchise Investment Law any provision requinng a North
Dakota franchisee to consent to arbitrafion or the junsdiction of courts outside North
Dakota the application of laws of a state other than North Dakota or the waiver of a tnal by
jury IS void [Note ACNA reserves the right to challenge the restriction on
the location of arbitration, as it applies to arbitration under the Federal Arbitration
Act]
You are not required to release any claims you might have against us under the North
Dakota Franchise Investment Law
You are not required to consent to a vraiver of exemplary or punitive damages against us
under the North Dakota Franchise Investment Law
INFORMATION REQUIRED
BY THE STATE OF RHODE ISLAND
The following is added to the disclosure document for Rhode Island residents
§ 19-28 1-14 of the Rhode Island Franchise Investment Act provides that A provision in the
Franchise Agreement restncting junsdiction or venue to a forum outside this state or
INFORMATION REQUIRED
PY TH^ ?TATC OF SQUTH CARP^nlNA
The following is added to the disclosure document for South Carolina residents
Cover Page The following is inserted as the first page of this disclosure document
If ACNA fails to deliver product equipment or supplies to be supplied by ACNA that are
necessary to begin substantial operation of the business within 45 days of the delivery date
stated in your contract you may notify ACNA in vmting and demand that the contract
be cancelled
INFORMATION REQUIRED
PY THP CQMMQNWPA^nTH QF YIRglNIA
Cover Page The words "or grant" are added at the end of the third sentence in the third
paragraph on Page i
Receipts The words or grant are added at the end of the second paragraph on each Receipt
INFORMATION REQUIRED
BY THE STATE OF WASHINGTON
RCW § 19 100 180 and court decisions may supersede the Franchise Agreement in your
relationship with us including in the areas of tennination and renewal of your franchise
In any arbitration involving a franchise purchased in Washington the arbitration site shall
be eitiier in the state of Washington or in a place mutually agreed upon at the time of the
arbitration or as determined by the arbitrator [Note ACNA reserves the right
to challenge the restnction on the location of arbitration, as it applies to
arbitration under the Federal Arbitration Act ]
A release or waiver of nghts executed by a franchisee will not include nghts under the
Washington Franchise Investment Protection Act except when executed pursuant to a
negotiated settlement after the agreement is in effect and where the parties are
represented by independent counsel Provisions such as those which unreasonably restnct
or limit the statute of limitations penod for claims under the Act, or nghts or remedies under
the Act, such as a nght to a jury tnal, may not be enforceable in Washington
Transfer fees are collectable to the extent that they reflect our reasonable estimated or
actual costs in effecting a transfer
EXHIBIT I
To
BUSINESS COACH
California Indiana
South Dakota
Melita Hauge
Division of Securities
Department of Labor and Regulation
445 East Capitol Avenue
Pierre SD 57501
(605) 773-5953
STATE AGENT
CALIFORNIA California Commissioner of Business Oversight
1-866-275-2677 (toll free)
Los Angeles
320 West 4th Street Suite 750
Los Angeles CA 90013-2344
(213) 576-7505
Sacramento
1515 K Street Suite 200
Sacramento CA 95814 4017
(916) 445-7205
San Diego
1350 Front Street Room 2034
San Diego CA 92101
(619) 525-4233
San Francisco
1 Sansome Street
San Francisco CA 94104(415)
972-8559
CONNECTICUT Banking Commissioner
Department of Banking
Securities & Business Investments Division
260 Constitution Plaza
Hartford CT 06103-1800
(860) 240-8230
GEORGIA Secretary of State of Georgia
Corporations Division
2 Martin Luther King, Jr Dr SE
Suite 315 West Tower
Atlanta Georgia 30334
HAWAII Commissioner of Securities
State of Hawaii
335 Merchant Street Room 203
Honolulu HI 96813
(808) 586-2722
ILLINOIS Illinois Attorney General
Franchise Division
500 South Second Street
Springfield IL 62706
(217) 782-4465
EXHIBIT J
To
BUSINESS COACH
ALABAMA
ARIZONA
CALIFORNIA
COLORADO
CONNECTICUT
FLORIDA
GEORGIA
ILLINOIS
INDIANA
Mark McNulty
641 Washington Suite 14
Mooresville IN 46158
812-372-7377
IOWA
Steve Wilson
195 N MentzerRoad
Robins, lA 52328
KENTUCKY
LOUISIANA
MAINE
Jim Lyon
101 Applecrest Drive
Yarmouth ME 4096
207-847-3164
MARYLAND
Jeff Miller
11 Vallingby Circle
Rockville MD 20850
301-309-8550
MICHIGAN
Fadi Baradihi
2632 S Rochester Rd #70763
Rochester Hills Ml 48307
248-979-8235
MINNESOTA
Tracy Ford
6575 141st Ave NW Suite 100
Ramsey MN 55303
763-444-9812
NEBRASKA
Jim Barger
16646 Howard Circle
Omaha NE 68118
402-676-8809
NEVADA
NEW JERSEY
NEW MEXICO
Mark Tobiassen
2912 River Willow TrI NW
Albuquerque NM 87120
505-263-5657
NEW YORK
NORTH CAROLINA
OHIO
OKLAHOMA
OREGON
Terry Elton
14440 SW 153"^ Ave
Tigard OR 97224
971-925-7001
PENNSYLVANIA
SOUTH CAROLINA
Foster McCaii
41 Woods Bay Rd
Bluffton SC 29910
843-350 0320
TENNESSEE
Curt Henry
1113Tusculum Blvd PMB 254
Greenville TN 37745
423-639-5632
TEXAS
UTAH
Tim Roberts
2791 East 3725 North
Layton UT 84040
801-309-9607
VIRGINIA
WASHINGTON
Kevin Weir
5813 East 4*^ Avenue #102
Spokane Valley WA 99212
509-455-5053
WEST VIRGINIA
Earl Kerry
89 Hadrian Ct
Martinsburg WV 25403
WISCONSIN
EXHIBIT K
To
BUSINESS COACH
TRANSFERS
ffrom Franchisees to New Owners other than a master licensee or ACNA1
Kelli Hoskins
27173 Lakewood Drive NW
Isanti MN 55040
763-444-9812
None
Arizona
Ron Wiltbank
4460 East Tremaine Avenue
Gilbert AZ 85234
480-252-4981
California
Kathie Ittel
1220 N Dutton Avenue #109
Santa Rosa OA
(707) 937-3168
Colorado
Jeff Wilson
90 Union Blvd Suite 310
Lakewood CO 80228
(303) 759-1204
Florida
Roberto Suarez
1200 Anastasia Ave Ste 100
Coral Gables FL 33134
(305) 295-9264
Georgia
Idaho
Drew Williams
2341 N Yonkers Lane
Boise ID 83704
(208) 631-5742
Indiana
Roger Engelau
6521 E Rolling Valley Court
Columbus IN 47201
(317) 908-5809
Iowa
Deb Oliver
109 Liberty St PO Box 534
Dysart lA 52224
Kentucky
Jerry Brown
1860 Campus Place
Louisville KY 40229
502-479-3692
Louisiana
Bnan Baudean
3631 Rue Colette
New Orleans LA 70131
504- 392-5480
Massachusetts
Mississippi
Scott Hamilton
7048 Old Canton Road Suite 2010
Ridgeland MS 39157
Nevada
Chris Weisman
5781 S Fort Apache Rd
Las Vegas NV 89148
702-795-3188
New Jersey
New York
North Carolina
Dan Lawson
Binkley Chapel Court
Wake Forest NC 27587
919-453-0729
Ohio
Oregon
David Chin
14939 NW Dominion Dr
Portland OR 97229
503-830-0814
Pennsylvania
Tennessee
Steve Pitcaim
43 Darlington Cove
Jackson TN 38305
Texas
Virginia
Washington
Chad Rudolph
24448 SE 42"" Place
Issaquah WA 98029
425-829-2333
Ar
COACH
business coaching
EXHIBIT L
To
BUSINESS COACH
FRANCHISE DISCLOSURE DOCUMENT
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
ELLSWORTH«GILMAW«STOUF
CPAs and Consultants
ACTIONCOACH ONECO, LLC
FINANCIAL STATEMENTS
DECEMBER 31, 2013 AND 2012
Table of Contents
Financial Statements
Balance Sheets 2
To the Members
ActionCOACH OneCo, LLC
We have audited the accompanying financial statements of ActionCOACH OneCo LLC which comprise the
balance sheets as of December 31, 2013 and 2012, and the related statements of income and members' equity and
cash flows for the year ended December 31 2013 and the period from April 19, 2012 (date of inception) to
December 31 2012, and the related notes to the financial statements
Auditor s Responsibililv
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit
in accordance with auditing standards generally accepted in the United States of America Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error In making those risk assessments,
the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity s internal control Accordingly, we express no such opinion
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion
Opinion
In our opinion, the financial statements referred to above present fairly, m all material respects, the financial position
of ActionCOACH OneCo, LLC as of December 31, 2013 and 2012 and the results of its operations and its cash
flows for year ended December 31, 2013 and the period from April 19, 2012 (date of inception) to December 31,
2012 in accordance with accounting principles generally accepted in the United States of Amenca
Tr»C»AHw0Une
2013 2012
ASSETS
Current Assets
Cash 159,828 $ 214,200
Accounts receivable, net 146,355 102,956
Prepaid expenses 4,267 1,475
Total current assets 310,450 318,631
Total Assets $ 310,450 $ 318,631
2013 2012
Operating Expenses
Bank charges and merchant fees 11,388 10,837
Conference and seminars 64,444 24,790
Consulting 90 242 96,156
Dues and subscriptions 20,873 7,320
Guaranteed payments 70,573 124,293
Information technology 1 049
Legal and accounting 95,885 46,753
Marketing and advertising 264,492 138,362
Office expense and other 3,468 3,222
Provision for credit claims 86,053 28,883
Recruitment 2,190 5,000
Rent 41,956
Taxes and licenses 6,773 5,009
Training 7,430
Travel, meals and entertainment 12,294 9,756
Utilities 2,215
Wages and related expenses 308,220 207,846
Total operating expenses 1,089,545 708,227
Net Income / (Loss) $ (18,550) $ 67,505
Other Comprehensive Income / (Loss)
Loss on foreign currency exchange (8,455) (1,913)
Total Comprehensive Income / (Loss) (27,005) 65,592
Members' Equity, Beginning of Year 68,860
Members' contributions 3,268
Members' Equity, End of Year $ 41,855 $ 68,860
2013 2012
ActionCOACH OneCo, LLC (the Company) was incorporated under the laws of the State of Nevada on
April 19, 2012
The Company markets business coaching, mentoring and training programs and services through the sale
of sub-franchisees (known as business coaches) m approved territories throughout the United States
The franchisees provide coaching and training to small and medium-sized business sectors
This summary of significant accounting policies of the Company is piesented to assist in understanding
the Company's financial statements The financial statements and notes are representations of the
Company's management who is responsible for the integrity and objectivity of the financial
statements These accounting policies conform to accounting principles generally accepted in the United
States of America and have been consistently applied in the preparation of the financial statements
The preparation of financial statements m conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period
Actual results could differ from those estimates
Accounts Receivable
Accounts receivable is reported at net of allowance for doubtful accounts Accounts are charged to bad
debt expense as they are deemed uncollectible based upon periodic review of the accounts At December
31, 2013 and 2012, the allowance for doubtful accounts was $119,704 and $33,651, respectively
The Company expenses all advertising and marketing costs as incurred The advertising and marketing
expense for the years ended December 31, 2013 and 2012 was $264,492 and $138,362, respectively
For the purpose of the statement of cash flows, the Company considers all highly liquid investments
available for current use with original maturity of three months or less to be cash equivalents
Revenue Recognition
The Company follows the accrual method of recognizing revenues Revenue from the sale of franchises is
recorded upon finalization of the coach franchise agreement and completion of services under the
contracts Upon execution of the franchise agreement, funds are generally paid by the franchisee for
training These revenues are recognized in the month that the franchisee attends the specified training
Royalty revenue is recognized primarily in a monthly basis based on the contract terms Product revenue
IS recognized at the time of shipment
5
ACTIONCOACH ONECO, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
Reclassification
Certain amounts in the prior year financial statements have been reclassified for comparative purposes to
conform to the presentation m the current period financial statements
The Company believes the carrying amount of cash, accounts receivable and other current assets,
accounts payable, accrued expenses and other current liabilities approximates fair value due to their short
maturity
The Company was organized as a Limited Liability Company Income is not taxed at the Company level,
but IS passed through to the members Therefore, no provision or liability for federal or state income
taxes has been included in the financial statements
As of December 31, 2013 the tax years that remain subject to potential examination by taxing authorities
begin with 2012
NOTE 4-REVENUES
Revenue sources for the year ended December 31, 2013 and for the period from April 19, 2012 to
December 31, 2012 are as follows
2013 2012
Master and license coach fees $ 245,750 $ 271,398
Training fees, royalties, product
income and others 1,223,018 517,279
Marketing fees 371,591 229,585
Other 39,375 535
Total $ 1,879,734 $ 1,018,797
The Company is a member of a controlled group of companies that are either wholly owned or majority
owned by the Company's majority member The other companies are located in the United States,
Australia, Canada and Europe, and are engaged in the same business activity as ActionCOACH OneCo,
LLC Amounts due to and due from related parties include transactions with the companies related
through common ownership
ACTIONCOACH ONECO, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
Amounts transferred between the Company and its related parties are for various purposes including
training income, royalties, support recharges and rent
As of December 31, 2013 and 2012, the net amount due to related parties consists of the following
Substantially all amounts due to and due from related parties are non-interest bearing and are due on
demand
As part of the franchise agreement, the Company pays royalty fees to ActionCOACH North America,
LLC, the franchisor of the ActionCOACH concept Total royalty fees were $407,805 and $289,670 for
the years ended December 31, 2013 and 2012, respectively
As part of the franchise agreement, the Company pays fees to the Global Marketing Fund, an Australian
Company, for marketing and advertising fees Total marketing fees associated with the Global Marketing
Fund were $164,437 and $1,995 for the years ended December 31, 2013 and 2012, respectively
The Company entered into a building lease with ActionCOACH North America, LLC, a related party
The lease commenced on May 1, 2013 and ended on December 31, 2013 The lease calls for monthly
payments of $5,250 The lease expense associated with this lease was $41,956 and $0 for the years ended
December 31,2013 and 2012, respectively Subsequent to year end, the lease is operating under a month-
to-month arrangement until a new lease agreement is entered into for 2014
The Company is involved, from time to time, in some disputes and claims incidental to the conduct of its
business Based on consultation with legal counsel, the Company does not believe that any claims or
disputes, either individually or in the aggregate, will have a material adverse effect on the Company's
financial condition or results of operations
ACTIONCOACH ONECO, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
Management has evaluated subsequent events through February 12, 2014, the date which the financial
statements were available to be issued No events were identified that would require additional disclosure
ACTIONCOACH NORTH AMERICA, LLC
FINANCIAL STATEMENTS
ELLSWORTH' GILMAN«STOUF
CPAs and Consultants
ACTIONCOACH NORTH AMERICA, LLC
FINANCIAL STATEMENTS
DECEMBER 31, 2013 AND 2012
Table of Contents
Financial Statements
Balance Sheets 2
To the Member
ActionCOACH North America, LLC
We have audited the accompanying financial statements of ActionCOACH North America, LLC, which comprise
the balance sheets as of December 31, 2013 and 2012, and the related statements of income and member s deficit
and cash flows for the year ended December 31, 2013 and the period from March 14, 2012 (date of inception) to
December 31, 2012, and the related notes to the financial statements
Auditor s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit
m accordance with auditing standards generally accepted m the United States of America Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements The procedures selected depend on the auditor s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error In making those risk assessments
the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control Accordingly, we express no such opinion
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion
Opinion
In our opinion, the financial statements referred to above present fairly in all material respects, the financial position
of ActionCOACH North America, LLC as of December 31, 2013 and 2012, and the results of its operations and its
cash flows for year ended December 31, 2013 and the period from March 14, 2012 (date of inception) to December
31, 2012 in accordance with accounting principles generally accepted in the United States of America
2013 2012
ASSETS
Current Assets
Cash $ 32,453 $ 27,668
Accounts receivable, net 57,165 30,652
Due from related parties 27,108
Other assets 33,864 25,501
Total current assets 123,482 110,929
2013 2012
Operating Expenses
Bank charges and merchant fees 50,416 26,821
Charitable contributions 1,000 1,800
Conference and seminars - 9,853
Depreciation 22,282 25,431
Dues and subscriptions 15,571 8,815
Equipment lease 26,162 12,686
Global recharge (684,000) (24,394)
Information technology 19,342 3,096
Insurance 18,560 4,249
Legal and accounting 129,050 262,733
Marketing and advertising 51,974 44,625
Office expense and other 55,618 30,135
Other professional fees 17,920 15,545
Provision for credit claims 33,163 50,421
Recruitment 25,185 24,113
Rent 126,616 67,004
Taxes and licenses 24,253 19,278
Telephone 28,015 21,241
Travel 21,386 6,338
Utilities 10,616 6,651
Wages and related expenses 1,438,108 677,048
Total operating expenses 1,431,237 1,293,489
Income / (Loss) from Operations 174,065 (403,454)
Other Income
Other income - 3,153
Gam on foreign currency exchange 1,757 248
Total other income 1,757 3,401
Net Income / (Loss) 175,822 (400,053)
Member's Deficit, Beginning of Year (400,053) -
Member's Deficit, End of Year $ (224,231) $ (400,053)
2013 2012
ActionCOACH North America, LLC (the Company) was incorporated under the laws of the State of
Nevada on March 14, 2012
The Company markets business coaching, mentoring and training programs and services through the sale
of master license franchises and their sub-ffanchisees (known as business coaches) in approved territories
throughout the United States
Master licensees sell and support ActionCOACH Business Coaching franchises within a defined territory
The franchisees provide coaching and training to small and medium-sized business sectors
This summary of significant accounting policies of the Company is presented to assist in understanding
the Company's financial statements The financial statements and notes are representations of the
Company's management who is responsible for the integrity and objectivity of the financial
statements These accounting policies conform to accounting principles generally accepted in the United
States of America and have been consistently applied in the preparation of the financial statements
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period
Actual results could differ from those estimates
Accounts Receivable
Accounts receivable is reported at net of allowance for doubtful accounts Accounts are charged to bad
debt expense as they are deemed uncollectible based upon periodic review of the accounts At December
31, 2013 and 2012, the allowance for doubtful accounts was $47,685 and $14,522, respectively
The Company expenses all advertising and marketing costs as incurred The advertising and marketing
expense for the years ended December 31,2013 and 2012 was $51,975 and $44,625, respectively
For the purpose of the statement of cash flows, the Company considers all highly liquid investments
available for current use with original maturity of three months or less to be cash equivalents
ACTIONCOACH NORTH AMERICA, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31,2013 AND 2012
The Company capitalizes significant expenditures for property and equipment at cost, generally those that
exceed $1,000 Depreciation and amortization expense are calculated using the straight line method over
the following useful lives
Estimated Useful
Description Lives (Years)
Furniture and fixtures 5-7
Vehicles 5-7
Computer equipment and software 3-5
Building improvements 15
Maintenance, repairs and minor renewals are expensed as incurred The cost of property sold or otherwise
disposed of and the related accumulated depreciation is relieved from the accounts, and any gams or
losses arising from sale or disposal are included in income
Revenue Recognition
The Company follows the installment method of recognizing franchise fee revenue The amount of the
initial master license fee is based on the population of a territory (normally, a state) On the sale of master
licenses, the amount agreed upon as down payment is recognized as income upon execution of the master
license agreement, the time determined as the point when the Company has substantially performed or has
satisfied all material services or conditions relating to the franchise sale The remaining balance is
recognized, in installments, at the Company's agreed share of the Coach franchise fee, paid by each new
Coach, upon execution of each of the franchise agreements between a master licensee and a Coach
Royalty revenue is recognized primarily on a monthly basis based on the contract terms Training
revenue is recognized when the training services are performed Product revenue is recognized at the
time of shipment
Territory Repurchase
Cost of repurchase of territories is recorded as a reduction of revenue in the period the franchise is
repurchased, to the extent of the revenue from a license fee previously recognized Recognition of
expense of any cost in excess of the license fee revenue previously recognized is deferred until actually
due per the repurchase agreement
The Company was organized as a Limited Liability Company Income is not taxed at the Company level,
but IS passed through to the member Therefore, no provision or liability for federal or state income taxes
has been included m the financial statements
ACTIONCOACH NORTH AMERICA, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
As of December 31, 2013 the tax years that remain subject to examination by taxing authorities begin
with 2012
NOTE 4-REVENUES
Revenue sources for the year ended December 31, 2013 and for the period from March 14, 2012 to
December 31, 2012 are as follows
2013 2012
Master and license coach fees $ 92,915 $ 45,000
Training fees, royalties, product
income and others 2,089,586 1,177,380
Conferences and seminars 162,371 10,000
Total 2,344,872 1,232,380
Territory repurchase (130,004) (80,667)
Total revenue $ 2,214,868 $ 1,151,713
2013 2012
Furniture and fixtures $ 285,463 $ 285,463
Vehicles 137,698 137,698
Computer equipment and software 12,618 12,618
Building improvements 105,645 105,645
541,424 541,424
Less accumulated depreciation (447,783) (425,501)
Total $ 93,641 $ 115,923
Depreciation expense for the years ended December 31, 2013 and 2012 was $22,282 and $25,431,
respectively
ACTIONCOACH NORTH AMERICA, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
The Company is a member of a controlled group of companies that are either wholly owned or majonty
owned by its member The other companies are located in the United States, Australia, Canada and
Europe, and are engaged in the same business activity as ActionCOACH North America, LLC Amounts
due to and due from related parties include transactions with the companies related through common
ownership
Amounts transferred between the Company and its related parties are for various purposes including
training income, royalties, support recharges and costs and rent
As of December 31, 2013 and 2012, the net amount due from (due to) related parties consists of the
following
12/31/13 12/31/12
Substantially all amounts due to and due from related parties are non-interest bearing and are due on
demand
The Company charges royalty and license fees to ActionCOACH OneCo, LLC, as part of the franchise
agreement Total royalty and license fees were $407,805 and $42,750, respectively, for the year ended
December 31, 2013 and $289,670 and $0, respectively, for the year ended December 31, 2012
The Company is involved, from time to time, in some disputes and claims incidental to the conduct of its
business Based on consultation with legal counsel, the Company does not believe that any claims or
disputes, either individually or in the aggregate, will have a material adverse effect on the Company's
financial condition or results of operations
ACTIONCOACH NORTH AMERICA, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
The Company entered into a building lease with Goby Holdings Ltd, an LLC owned by a company
wholly owned by Brad Sugar's family trust, effective July 1, 2012 The lease is for a period of five years
The lease calls for a base rent of $15,334 per month plus the operating expenses of the building It also
calls for a 2% rent increase upon lease extensions The lease was amended on March 19, 2013 The
amended lease calls for monthly rent payments of $8,682 ($104,184 per annum)
Equipment Lease
The Company leases various office equipment under non-cancelable operating leases, with terms ranging
from 63 to 69 months, ending m 2015
The lease expense associated with the building and equipment leases totaled $147,992, and $79,689 for
the years ended December 31, 2013 and 2012, respectively
The minimum lease commitments for the remainder of the leases are as follows
Sub-lease Agreements
The Company entered into a sub-lease agreement with ActionCOACH OneCo, LLC, a related party, for
the use of office space The lease commenced on May 1, 2013 and ended on December 31, 2013 The
lease calls for monthly payments of $5,250 to be made to the Company The lease income associated
with this lease was $42,000 and $0 for the years ended December 31, 2013 and 2012, respectively
Subsequent to year end, the lease is operating under a month-to-month arrangement until a new lease
agreement is entered into for 2014
The Company also received sub-lease income from a third party for the use of office space The lease
calls for monthly payments of $1,000 and is operating under a month-to-month arrangement Total sub
lease income associated with this lease was $8,000 and $0 for the years ended December 31, 2013 and
2012, respectively
ACTIONCOACH NORTH AMERICA, LLC
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 2013 AND 2012
Under a license agreement dated July I, 2012, the Company became licensed by ActionCOACH IPCo,
Ltd (Licensor) to use and sublicense, within the United States of America and Canada, the trademarks,
copyrighted materials and other intellectual property associated with the ActionCOACH concept The
license is for a term of 99 years and is terminable by the Licensor if (1) the Company fails to cure a
material default within 90 days after receiving notice of default from the Franchisor, (2) the Company or
any of its directors or executive officers is convicted (or pleads no contest to) of a felony, crime involving
moral turpitude, or other crime that is likely to harm the Licensor's goodwill in the trademarks, (3) the
Company's assets are attached pursuant to court order, (4) the Company becomes insolvent or the subject
of bankruptcy or dissolution proceedings, or ceases to do business
Financial accounting standards for consolidation of variable interest entities (VIEs) provide a framework
for identifying VIEs and detennimng when a company should include the assets, liabilities, non-
controlling interests, and results of activities of a VIE m its consolidated financial statements In general,
a VIE IS a corporation, partnership, limited-liability corporation, trust, or any other legal structure used to
conduct activities or hold assets that either has
1 An insufficient amount of equity to carry out its principal activities without additional
subordinated financial support,
2 A group of equity owners that are unable to make significant decisions about its activities, or
3 A group of equity owners that do not have the obligation to absorb losses or the right to receive
returns generated by its operations
The Company has a variable interest in a commonly owned company called Goby Holdings Ltd (VIE),
(see Note 8) The relationship between the Company and the VIE was reviewed and it was determined
that the relationship and the transactions between the companies do not require consolidation in the
Company's financial statement The VIE owns a building, which the Company leases to run its
operations
Management has evaluated subsequent events through Februaiy 12, 2014, the date which the financial
statements were available to be issued No events were identified that would require additional
disclosure
10
ActionCOACH business coaching
EXHIBIT M
To
BUSINESS COACH
Class
Day Subject ' Activities And Group Work Materials
[ Hours
Welcome to Action Intro and Positioning the Team
Trainer Earn The Rioht Trainers background
About Learninq Confusion and Success Mindset
PowerPoint
System Overview Follow the ActionCOACH system
Notes
Chanqe the Wav You Think Generalized Princioles
Day 1 14 Flipchart
Action Coach Business System Product ladder intro Handouts
Profit System Activities
Table tooic What have you learned so far
Exercise Learninq Review
WIFLE Introduction What 1 Feel Like Exoressinq
Volleyball Review
Review of Day 1 slides Review of Day 1 slides
Action Coach Coaching System Intro - teach to fish and 6 steps intro
Action Coach Coaching System PowerPoint
Mastery/ Financial Mastery
Notes
Action Coach Coaching System Service Training
^ Day 2 16 Flipchart
Exercise Service Rich Review
Handouts
Exercise Mastery Review Activities
Action Coach Coaching System Niche
Exercise Niche Review
Leverage Game Night System Play Leverage after dinner
Volleyball Review
Review of Day 2 slides Review of Day 2 slides
Action Coach Sales Training Workshop Presentation
Leverage System 9 Ways to Systematize
Exercise Leverage Review
Team System 6 Keys to a Winning Team
Shake Hands Game Team Activity
Squares Game Team Activity PowerPoint
Notes
Exercise Team Review
Day 3 16 Flipchart
Action Coach Recruitment 4 Hr Recruitment System
Handouts
Exercise Recruitment Review Activities
Action Coach Synergy System Duplication / to X
Exercise Synergy
Action Coach Results System Results & Future Coaching
Book Recommendations Top 10 Books
Exercise Results & Future Coaching
WIFLE What 1 Feel Like Expressing
Feedback Form Complete feedback form
Volleyball Review
Outside Business Analysis Review of Outside Business Ops
Review of Day 3 slides Review of Day 3 slides
Action Coach Marketinq System 13 Step System Step 1
PowerPoint
Ad Giants Intro & online demo
Notes
Action Members Intro & online demo
Day 4 14 Flipchart
Exercise Review Step 1 Handouts
Action Coach Marketinq System 13 Step System Step 2 Activities
Exercise Review step 2
Action Coach Marketing System 13 Step System - Step 3 & 4
Exercise Role Play step 3
Exercise Role Play step 4
ActionCOACH TRAINING PROGRAM
Class
Day Subject Activities And Group Work Materials
Hours
Action Coach Marketing System 13 Step System Step 5 & 6
Action Coach Marketing System 14 Step System - Step 7 & 8
Exercise Role Play step 7
Exercise Role Play step 8
Action Coach Marketing System Step 9 - Homework for Day 5
Exercise 13 Step Review 1 - 8
WIFLE What 1 Feel Like Expressing
Volleyball Review
Exercise Steps 9-13
Review of Day 4 slides Review of Day 4 slides
Review of Ropes Course Learning and Breakthrough s PowerPoint
Notes
Selling Characteristics of Sales Person
Day 5 14 Flipchart
The Coaching Sales Process 8 Steps to the Sale
Handouts
Exercise Coach on Deck Role Play Activities
Exercise Diag Role Play
Exercise 13 Step Review 9-13
Exercise Review Welcome Pack
Volleyball Review
Review of Day 5 slides Review of Day 5 slides
Business Rich Positioning and selling
Business Rich Presentation Overview PowerPoint
Exercise Business Rich Notes
Day 6 Growth Club Positioning and selling 14 Flipchart
Growth Club Presentation Overview Handouts
Exercise 90 Day Planning Activities
Exercise Review Growth Club
Exercise Review the Day guestions for Trainer
Feedback Forms Complete feedback forms
Volleyball Review
Review of Day 6 slides Review of Day 6 slides
Action Coach Coaching System Welcome book and Starter Pack
Exercise Review the Coach System
Action Coach Coaching System 1st 6 Weeks
Action Coach Coaching System Positioning System
Action Coach Coaching System Positioning Role Play
Exercise Review Positioning
Action Coach Coaching System Alignment System
Action Coach Coaching System Alignment Role Play - personal PowerPoint
Notes
Action Coach Coaching System Alignment Role Play business
Day 7 14 Flipchart
Action Coach Coaching System Alignment Role Play solutions
Handouts
Exercise Review Alignment
Activities
Action Coach Coaching System The Alignment Training Day
Action Coach Coaching System Week 3 - Education
Exercise Review Education
Action Coach Coaching System Week 4 community
Exercise Review Education
Action Coach Coaching System Week 5 results
Exercise Review Results
Action Coach Coaching System Week 6 referrals
Exercise Review Referrals
Volleyball Review
Day 8 14 PowerPoint
Review of Day 7 slides Review of Day 7 slides
ActionCOACH TRAINING PROGRAM
Class
Day Subject Activities And Group Work Materials
Hours
Action Coach Summary 13 Weeks-90 Day Plan Notes
Exercise 90 Day Plan Flipchart
Action Coach Summary 13 weeks coaching Handouts
Exercise Coaching Script Activities
Action Coach Summary Coaching Process
Exercise Coaching Role Play
Exercise Review Coaching
Action Coach Summary 1st 12 Months Coaching
Exercise Review Coaching
Action Coach Summary Results Review -13 weeks
Exercise Review 13 Week System
Volleyball Review
Review of Day 8 slides Review of Day 8 slides
Action Coach Presenting System Mastery & super Learning PowerPoint
Exercise Presenting Notes
Day 9 Action Coach Presenting System Presenting the 5 Ways 14 Flipchart
Exercise Presenting the 5 Ways Handouts
Exercise Review 5 Ways Presenting Activities
WIFLE Group WIFLE
Dinner The Lavo at The Palazzo
Volleyball Review Final
Review of Day 9 slides Review of Day 9 slides
System Flow Chart Build a system flow chart
System Flow Chart Present to each other PowerPoint
The Action Coach Business System Goal Platinum Notes
Day
Dream Goal Plan Action Race to Platinum 8 Flipchart
10
Online SuoDort Review websites Handouts
Exercise Share your Dreams Activities
Exercise Present Goals to each other
Exercise Review 90 Day Plans
Feedback Forms Complete feedback forms
ActionCOACH TRAINING PROGRAM
CLASSROOM
DAY SUBJECT MATERIALS
HOURS
TRAINERS
The following individuals are the trainers who rotate to conduct the subjects in the Franchisee Training and
Employee Business Coach Training
ActionCOACH
Name Franchisee AC.nCOACHAw„d.
since
Nov 2010 Jan to Apr 2003 - Coach of the year (Regional) 2004
Steven Kay May-01 2011 Jul 2011 Jan - Team Player (Regional) 2008 - 2010
and Feb 2012 Firm Owner of the Year
EXHIBIT N
To
BUSINESS COACH
2 Coaching
3 Firm
31 People
32 Roles and Responsibilities
33 Recruiting
34 Training
35 90 Day Coach Foundation Program
36 Conferences
37 Operations
38 Office
39 Technology
31 Communication
311 Financials
312 Policies
313 Legal
314 Marketing
3 15 Stock List
3 16 Firm Marketing
317 Standards
318 Brand Management
319 Planning and Reporting
32 Goals
3 21 Planning
3 22 Reporting
3 23 Standard Forms
4 MasterCOACH
41 Coaching Agreements
42 Monthly Reporting
43 Event Approval
44 Marketing and Promoting
45 Fees
46 Management and Administration
47 Minimum Standards
48 Removal
5 Sales
61 Welcome Book
62 Introduction
63 Steps Involved
64 Sales Letter
65 Program Outline
66 5 Ways for Non-Profits
67 Approved PR Templates
68 Fact Sheet
69 Q&A with Brad Sugars
61 Structure of Regiona Boards
6 11 Agreement Form
6 12 Coaching for a Cause Official Presentation at Global
6 13 Recommended Reading
6 14 Coaches Share their Non-Profit Expenence
Instructions for Registering and Promotibg a Cause in the
6 15 website
6 16 Coaching for a Cause Website Training Webinar
6 17 Coaching for a Cause Interview with Brad Sugars
618 Using a Pro Bono Coaching to Grow your Business
6 19 Coaching for a Cause Webinars
7 Marketing
8 Marketing Media
81 5 Ways
82 6 Steps
83 ActionCLUB
84 Business Excellence Forum
85 BusinessRICH
86 Coach Level Certificates
87 Continuation Education Credits - NASBA
88 French Materials
89 GrowthCLUB
81 Leverage Game Nights
8 11 PlanningCLUB
812 ProfitCLUB
8 13 SeminarCLUB
8 14 Sporting Flyers
815 Take the Field
816 Testimonials
8 17 Tickets / Gift Certificates / Vouchers
9 ActionMEDIA
10 IT
10 1 Email
102 FAQs
103 ActionHELP
104 Infrastructure
105 Passwords
106 Web Sites
107 CRM
11 ActionMEMBERS
11 1 About ActionMEMBERS
11 2 ActionHELP
11 3 Mam Arena
114 Home Run
115 Notice Board
11 6 Game Plan
11 7 Playbook
11 8 Scouting
11 9 Scorecard
11 1 Locker Room
1111 Administration
12 ActionCOACH CRM
13 ExecutiveCOACH
141 Accounting
14 2 Business
14 3 Marketing
14 4 Coaching
14 5 Compliance
14 6 Legal
14 7 Sales
14 8 Training
ActionCOACH business coaching
EXHIBIT O
To
BUSINESS COACH
Hardware Requirements
Software Requirements
Telecommunication Requirements
Minimum of two office phone lines and one dedicated fax line*
o VoIP providers such as Vonage which can accommodate these requirements are
acceptable
Broadband connectivity minimum of 768kb/s download speed and 384 kb/s upload speed is
recommended but not required, as download speed is generally limited by geographical
restnctions
Plain paper fax machine (high paper capacity preferred)
o Altematively an online fax service such as eFax is acceptable In this case it would
not be necessary to obtain a dedicated fax line
{You Date, Sign, and Keep This Copy}
RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other
information in plain language Read this disclosure document and all agreements carefully
If we or ActionCOACH North America Inc ( ACNA ) offer you a franchise we or AGNA must provide this
disclosure document to you fourteen (14) calendar days before you sign a binding agreement with or
make a payment to us ACNA or an affiliate in connection with the proposed franchise sale
[Maryland New York and Rhode Island require that we give you this disclosure document at the
earlier of the first personal meeting or ten (10) business days before the execution of the franchise
or other agreement or the payment of any consideration that relates to the franchise relationship ]
[Michigan and Oregon require that we give you this disclosure document at least ten (10) business
days before the execution of any binding franchise or other agreement or the payment of any
consideration whichever occurs first ]
if we or ACNA do not deliver this disclosure document on time or if it contains a false or misleading
statement or a material omission a violation of federal law and state law may have occurred and
should be reported to the Federal Trade Commission Washington DC 20580 and to the
appropriate state agency listed in Exhibit I
The Master Licensee is ActionCOACH OneCo LLC Our agent for service of process is listed in
Exhibit I Our Franchisor is ActionCOACH North Amenca LLC at 5781 S Fort Apache Rd Las
Vegas NV 89148 tel no 888-483-2828 ACNA s agents for service of process if any are listed in
Exhibit I
Issuance date
I have received a Franchise Disclosure Document dated March 28 2014 which included the following
exhibits Exhibit A The FIRM - Business Coach Agreement Exhibit B(1)-(B2) The Practice (5
Year and Premium) Business Coach Franchise Agreement Exhibit C State- Required Addenda to
Franchise Agreement, Exhibit D Nominated Business Coach Agreement Exhibit E Nondisclosure and
Noncompete Agreement Exhibit F Release Exhibit G Compliance Questionnaire Exhibit H
Additional State-Required Information Exhibit I State Regulatory Authorities and Registered
Agents in Certain States Exhibit J Business Coaches as of December 31 2013 Exhibit K Business
Coaches who left the system dunng the fiscal year ending December 31 2013 Exhibit L Financial
Statements Exhibit M Training Schedule Exhibit N Operations Manual Table of Contents and
Exhibit O Communications System Specifications
If I received the Franchise Disclosure Document on CD-R or CD-ROM or by any other electronic
means then by printing this receipt for signature I acknowledge that I have the equipment
software and other means necessary to open and to review the Franchise Disclosure Document in its
entirety
Date Signed
Print Name
{You Date, Sign, and Give Us This Copy}
RECEIPT '
This disclosure document summarizes certain provisions of the franchise agreement and other
information in plain language Read this disclosure document and all agreements carefully
If we or ActionCOACH North Amenca Inc ( AGNA ) offer you a franchise we or AGNA must provide this
disclosure document to you fourteen (14) calendar days before you sign a binding agreement with or
make a payment to us AGNA or an affiliate in connection with the proposed franchise sale
[Maryland New York and Rhode Island require that we give you this disclosure document at the
earlier of the first personal meeting or ten (10) business days before the execution of the franchise
or other agreement or the payment of any consideration that relates to the franchise relationship ]
[Michigan and Oregon require that we give you this disclosure document at least ten (10) business
days before the execution of any binding franchise or other agreement or the payment of any
consideration whichever occurs first ]
If we or AGNA do not deliver this disclosure document on time or if it contains a false or misleading
statement or a material omission a violation of federal law and state law may have occurred and
should be reported to the Federal Trade Gommission Washington DG 20580 and to the
appropriate state agency listed in Exhibit I
The Master Licensee is ActionGOAGH OneGo LLG Our agent for service of process is listed in
Exhibit I Our Franchisor is ActionGOAGH North Amenca LLG at 5781 S Fort Apache Rd Las
Vegas NV 89148 tel no 888-483 2828 AGNA s agents for service of process if any are listed in
Exhibit I
Issuance date
I have received a Franchise Disclosure Document dated March 28 2014 vi4iich included the following
exhibits Exhibit A The FIRM - Business Goach Agreement Exhibit B(1)-(B2) The Practice (5
Year and Premium) Business Goach Franchise Agreement Exhibit G State- Required Addenda to
Franchise Agreement Exhibit D Nominated Business Goach Agreement Exhibit E Nondisclosure and
Noncompete Agreement Exhibit F Release Exhibit G Gompliance Questionnaire Exhibit H
Additional State-Required Information Exhibit I State Regulatory Authorities and Registered
Agents in Gertain States Exhibit J Business Goaches as of December 31 2013 Exhibit K Business
Goaches who left the system dunng the fiscal year ending December 31 2013 Exhibit L Financial
Statements Exhibit M Training Schedule Exhibit N Operations Manual Table of Gontents and
Exhibit O Gommunications System Specifications
If I received the Franchise Disclosure Document on GD-R or GD-ROM or by any other electronic
means then by pnnting this receipt for signature I acknowledge that I have the equipment
software and other means necessary to open and to review the Franchise Disclosure Document in its
entirety
Date Signed
Print Name
Cal E^SI Project (21S0 11;
Per- ^ t D'jcum^ros
in" «:
c /
/
Document Separator Sheet
\
X?
Patch II
RECEIVED
APR 012014
Dept of Business Oversight
"LT
fU
business coaching
BUSINESS COACH
FRANCHISE DISCLOSURE DOCUMENT
ActionCOACH OneCo, LLC
CALIFORNIA
(Counties of Kern, Los Angeles, Orange, San Luis Obispo,
Santa Barbara and Ventura)
Buying a franchise is a complex investment The information in this disclosure document can
help you make up your mind More information on franchising such as "A Consumer's Guide to
Buying a Franchise," which can help you understand how to use this disclosure document, is
available from the Federal Trade Commission You can contact the FTC at 1-877-FTC-HELP or
by writing to the FTC at 600 Pennsylvania Avenue, NW, Washington, D C 20580 You can also
visit the FTC's home page at www ftc gov for additional information Call your state agency or
visit your public library for other sources of information on franchising
There may also be laws on franchising in your state Ask your state agencies about them
Issuance Date March 28. 2014March 28. 2013. as amended on Novombor 11. 2013
We may use the services of one or more FRANCHISE BROKERS or referral sources to assist
us in selling our franchise A franchise broker or referral source represents us, not you We pay
this person a fee for selling our franchise or referring you to us You should be sure to do your
own investigation of the franchise
Certain states require franchisors to make additional disclosures related to the information
contained in this disclosure document Those disclosures are in Exhibit H to this disclosure
document
The Effective Date for the State of California is November 18, 2013
PAGE
ITEM 3 LITIGATION 8
F Release
G Compliance Questionnaire
K Business Coaches who left the System during the Fiscal Year ending December 31,
20132
L Financial Statements
M Training Schedule
RECEIPT (2 copies)
We began offering Business Coach franchises in non-registration states within the Territory in
July 2012 No other predecessor or affiliate has ever offered business coach franchises
Neither we nor any predecessor or affiliate has ever offered franchises in any other line of
business
We subfranchise and support Business Coaches within our Territory We do not have the right
to conduct business coaching services within our Territory
ACNA IS a limited liability company with its principal business address at 5781 S Fort Apache
Rd , Las Vegas, Nevada 89148 ACNA was incorporated in the State of Nevada on March 14,
2012 ACNA has appointed agents for service of process in certain states, those agents are
listed in Exhibit I
Through its Master Licensees and Business Coaches, ACNA provides business coaching,
mentoring and training programs and services to business owners ("Clients") in the small to
medium-size business sector
Master Licensees and Business Coaches deliver services using a business format and
materials created by Brad Sugars, an entrepreneur and business coach who founded the
ActionCOACH concept (then known as Action International) in the early 1990s ACNA is a
member of a controlled group of companies owned by Mr Sugars Action International Pty Ltd
("AIPL') was incorporated in Australia in 1994 to develop the business, and offered franchises in
Australia using the "Action International" marks from January 1995 until December 2006 Its
address was Australia Fair Tower, Level 11, Suite 2, 32 Mams Parade, Southport, Queensland
4215, Australia ACTIONCOACH LIMITED ('ActionCOACH Limited ) owned the ActionCOACH
marks and other intellectual property relating to the ActionCOACH System, and licensed them
to MindRICH S A R L ('MindRich") On July 1, 2012, the ActionCOACH marks and intellectual
property were assigned by ActionCOACH Limited to ActionCOACH IPCo, Ltd ("ACIP") and
MindRichs license was then terminated with ACNA now holding the right, from ACIP, to
sublicense the intellectual property in the Territory, among others ACIP was incorporated in
2012 in the United Kingdom ACIPs principal business address is Argon House, Argon Mews,
Fulham Broadway, London, UK SWB 1BJ On May 1, 2012, ActionCOACH Global Marketing
Fund (Pty) Ltd (ACGM') was incorporated in Australia for the purpose of managing and
administering the Marketing and Advertising Fees collected from franchisees beginning July 1,
CA Business Coach FDD March 2014 2
2012 ACGMs registered office is Unit 1, 44 Borthwick Avenue, Murrarie, OLD 4172 Other
companies in the group engage in the same business activity in other regions of the world
Before ACNA granting Master Licenses in the Territory, ACUl (formerly known as "Brad Sugars
Action International, Inc ') offered Master Licenses and direct Business Coach franchises using
the "Action International trademark in the USA from August 1999 until December 2006, at
which time ACUl ceased licensing the "Action International trademark in most states Since
January 2007, ACUl offered Master Licenses and direct Business Coach franchises using the
"ActionCOACH' trademark Existing franchisees were required to begin using the
ActionCOACH marks by March 31, 2007 ACNA has no other predecessor as franchisor of the
ActionCOACH concept in the USA Neither ACNA nor its affiliates havo ever offered
franchiGos in any other line of business
ACNA IS also affiliated with ProfitPlus Accounts Ptv Ltd ("ProfitPlus Australia') and ProfitPlus
Accounts LLC ("ProfitPlus USA L franchisors of the ProfitPlus Accounts franchise business in
Australia and the USA respectivelv In 2012, Mr Suaars established throuoh ProfitPlus
Australia the ProfitPlus Accounts concept for financial reporting, business management,
management reporting and business development services in Australia In the USA. ProfitPlus
USA IS the licensor and franchisor of the ProfitPlus Accounts concept ProfitPlus USA will,
subiect to federal and state reouirements. commence sales and operations of the ProfitPlus
Accounts franchises in the USA in 2014 ProfitPlus Australia was organized on September 14.
2012 in Australia and has its principal office at 2/8 Mowbrav Terrace. East Brisbane. OLD 4169
ProfitPlus USA was organized in Nevada. USA on June 3, 2013 and has its principal place of
business at 5781 S Fort Apache Road. Las Vegas. NV 89148
We offer 3 types of Business Coach franchises - (1) the FIRM, (2) the PRACTICE (5 Year), and
(3) the PRACTICE (Premium) You and we will determine which form of franchise may be
granted to you based on our subjective assessment of your ability and desire to mentor a team
of Business Coaches
This disclosure document describes the terms and conditions upon which we currently offer
Business Coach franchises We reserve the right, in our sole discretion, to grant, or not to
grant an ActionCOACH franchise to you, regardless of the stage of the franchise application
process or costs expended by you There may be instances where we have varied, or will vary,
the terms on which we offer franchises to suit the circumstances of a particular transaction
However, our mission is to grant franchises to qualified individuals and groups who believe they
can achieve their personal and business goals by
BUSINESS EXPERIENCE
The following is a list of all of our directors trustees, general partners and principal officers, as
well as the individuals who have management responsibility relating to the sale or operation of
ActionCOACH Business Coach franchises in the Territory
Mr Sugars is the founder of the ActionCOACH business concept (formerly known as Action
International), and serves as Chairman of the ActionCOACH group of companies He was
Chairman, President, Secretary and Treasurer of ACUl, located in Las Vegas, Nevada from
August 2002 and Chief Executive Officer thereof from August 2007 up to January 2010 Mr
Sugars is also the founder of the ProfitPlus Accounts franchise concept which started in
Australia in 2012 He is the author of 14 books in the Instant Success book series, a seminar
speaker and the ActionCOACH spokesperson Mr Sugars resides in Las Vegas, Nevada
Ms Fairbanks was appointed CEO of ACOC effective May 2013 Before her appointment as
CEO, Ms Fairbanks was Accountability Coach for ACOC in Las Vegas, Nevada, a position she
held since May 2012 Before joining ACOC, Ms Fairbanks was Accountability Coach, Human
Resources Manager and Franchise Recruiter from December 2006 until April 2012 for Golden
State Business Coaching, Inc , an ActionCOACH master licensee for another territory operating
from Reno, Nevada
Before joining ACOC as Franchise Recruitment Officer in May 2012, Mr Dove was previously
master licensee for ActionCOACH Florida and Puerto Rico, operating from Miami FL from
January 2006 to April 2012 as well as master licensee for ActionCOACH Greater London UK,
operating from Chelsea, London, from February 2002 to October 2005
Tho following IG a list of all of AGNA's directors, trustoos, gonoral partners and principal officers
as woll as tho individuals who have management responsibility relating to the sale or operation
of ActionCOACH Business Coach franchises in the Territory
Mr Ciuffetelli first joined ActionCOACH in 2001 in Australia He was Franchise Manager for
Australia-Asia (August 2001 to February 2002) and Global Director of Master Licensees
(February 2002 to March 2003) In April 2003, Mr Ciuffetelli was appointed CEO (Global) of the
ActionCOACH group of companies, a position he held until July 2008 in Brisbane, Australia He
briefly pursued personal business interests as CEO of Mars Venus Institute in Melbourne,
Australia from August 2008 to June 2009 and then CEO of Your Trading Room, a company
based in Brisbane, Australia from July 2009 to February 2010 Mr Ciuffetelli rejoined the
ActionCOACH group in March 2010 as its CEO for Asia Pacific, Europe, Middle East and Africa,
a role he held from March 2010 to April 2013 in Queensland, Australia Mr Ciuffetelli is
currently CEO of ACNA, a position he has held since May 2013 He has also resumed his role
as CEO (Global) for the ActionCOACH Group of companies effective May 2013 Mr Ciuffetelli
IS also Managing Member of ProfitPlus Accounts. LLC in Las Vegas. NV since June 2013
ITEMS
LITIGATION
Karen Boyd vs ActionCOACH USA, Inc (United States District Court District of Maryland
Northern Division Civil Case No 12 ov 03206)
On October 22 2012, Karen Boyd tho owner of a Master Lioensoo which conducts business
under the ontity Country Quarters Limited, LLC (collootivoly, Boyd'), filod a verified complaint in
the state court in Maryland for Temporary Restraining Order and Proliminary and Permanent
Injunctive Relief against ActionCOACH USA, Inc , the previous franchisor of tho ActionCOACH
concept in the USA—On July 1, 2012 Boyd s Master License Agreement for the States of
Maryland and Delaware and the District of Columbia in the USA ("Boyd Territory) was
assigned to ActionCOACH North Amorica, LLC ('ACNA') and subsoquontly terminated by
ACNA on October 17, 2012 for uncurod broaches of tho agreomont—In tho complaint, Boyd
ollogos that tho broachos upon which tho Master License was torminated oithor (i) aro false and
pre'textual, or (ii) wore cured prior to tho disputed termination—Boyd seeks to onjoin ACUl from
(a) terminating the Master License—(b) using or exploiting in any manner Boyd s alleged
confidential, proprietary or trade secret information for itself or any person, partnership
association, corporation or entity (other than for Boyd and/or Country Quarters Limited, LLC),
and (c) continuing to solicit, or from soliciting, any and all franchises in Maryland Delaware
and/or the District of Columbia—Boyd also sooks an unspocifiod amount of monetary damages,
as well as costs and attorney s fees On November 1, 2012, ACUl romovod tho caso to federal
court in Maryland—On December I'l 2012, without admitting liability to tho other and to avoid
the inconvonionco of litigation, Boyd and ACUl ontorod into a Settlement Agroemont whoroby
ACUl purchased the Boyd Territory for the sum of $160,000 00—Following tho agroomont tho
case was dismissed with prejudice on Docembor 17, 2012
Robert and Eugenia Cerbone Action Waehtngton, Inc and Action Oregon, Inc v Action
InternaUonal Pty Ltd, Brad Sugars Action International, Inc, and Vic Ciuffotolli (Unitod States
District Court District of Oregon, Caso No 01 CV '190 BR)
On February 25, 200^, the Master Licensee for the State of Washington and its owners
(collectively the Corbones') filed a lawsuit against ACUl, AIPL, and Mr Ciuffetelli (collectively
'Action ) alleging misreprosontation in connection with tho sale of the Master License—The
Corbonos allogod that thoy onterod into tho transaction based on Action's ropresontation that
the Liconsod Coach Franchise Agroomont would be a throo party agreement among the Master
Liconsoo, the Licensed Coach and ACUl (f/k/a Brad Sugars Action International Inc)—Tbe
Corbones alleged that this represontation was false because the Licensed Coach Franchise
Agroomont provided to the Cerbones for use in Washington listed ACUl as a signatory in only
limited third-party form—Tho Cerbonos also alleged that Action misrepresented the proprietary
The Corbonos second amended cemplaint asserted claims for common law misroprosontation,
negligent misrepresentation violation of ttie Oregon Unlawful Trade Practioos Act (ORS
€46 608(1)(e)—(g), (i), (q) and (t)), unjust enriohmont, slander per so—violations of tho
Washington Franchise Investment Protootion Act (misrepresentation or omission of a material
fact (RCW 19 100 170) and unlawful offer to soil a franchise (RCW 19 100 170)), and violations
ef the fedoral and Oregon Rackotoor Influenced Corrupt Organizations Acts (18 USC soc
4962(c) and ORS 166 720(3))—Tho Corbonos sought 770,000 in actual damages, treble
damages, $2,000,000 in punitivo damages, rescission of tho Master License Agreement and
attorneys foes and costs
On April 13 2004, ACUl filed a motion to stay the lawsuit and enforce tho obligation in tho
Master License Agroomont to submit the dispute to mediation and arbitration in Nevada—OR
October 26, 2004, tho court denied ACUI's motion ACUl filed an appeal of the court s ruling on
tho arbitration clauso and the district court granted ACUI's motion to stay the district court
proceedings pending the appeal
Tho parties subsoquontly reached a sottlomont by reason of—which tho Master License
Agreement was rescinded effective Juno 30, 2005—ACUl thus recovered tho right to grant
Liconsod Coach Franchise Agreements in Washington—ACUl refunded tho Corbonos' mastor
liconso foo payment and reimbursed thom for other expenses and attorneys' foos in tho total
amount of 575,000, and the district court caso and tho appeal wore dismissed in early July
2006-
Peter Lin v Action Intornational, Inc, Performance Managomont Consulting LLC and Jill
G(esey (Court of Common Pleas, Summit County Ohio, Caso No 2002-084672)
On August 21, 2002, Potor Lin, tho owner of a Licensed Coach franchise in Solon, Ohio
brought an action alloging that Jill Giesey who was then the Master Licensee for Northern Ohio,
bad made numerous misrepresentations during tho franchise salos process—Although ACUl
(f/k/a—Brad—Sugars Action—International—Inc ) was—not alleged—te—have—made—aay
misroprosontations Lin named ACUl as a dofondant based on the theory that the Master
Liconsoo was an agent of ACUl—Tho complaint alleged that tho offering circular was dofoctivo
under tho Ohio Business Opportunity Purchasers Protoction Act (BOPPA) in that it lacked a list
ef franchisees in tho state of Ohio a notice of his right of cancellation, and a form for
eancellation of the agroomont The complaint also alleged that the Master Liconsoo fraudulently
induced Lin to purchase the franchise Tho complaint demanded compensatory damages in the
amount of ($42,161 treble and punitive damages and costs (including attorneys foos)—OR
May 21, 2003, the court issued an opinion—(1) ruling that the arbitration clause in Mr Lin's
franchiso agreement was inapplicable to his BOPPA claim, (2) granting summary judgment
against Ms Giesey (but not against ACUl) on Mr Lins claim for violation of the BOPPA,
(3) confirming that Mr Lin properly cancelled the franchiso agreement and (4) doclaring that
Mr Lin was entitled to statutory damages—In July 2004, ACUl ontorod into an agreement with
Ms Giesoy and hor operating company under which ACUl terminated the Mastor Licenso,
repurchased the territory and exchanged mutual releases with Ms Giesey—Mr Lin was not a
party to this agreement—On January 5 2005, the parties reached a final settlement following
which tho defendants paid $51,000 to Mr Lin and all claims in tho case wore dismissed with
projudico
As a result of an investigation into ACUl s (f/k/a Brad Sugars Action International, Inc)
franchise-related activities, the Maryland Securities Commissioner (the "Commissioner")
concluded that grounds existed to allege that ACUl violated the registration, disclosure and anti-
fraud provisions of the Maryland Franchise Law in relation to the offers and sale of ACUl master
franchises in Maryland Specifically, the Maryland Securities Commissioner concluded that
grounds existed to allege that ACUl (a) offered and granted an option to a Pennsylvania
resident. The Coaching Company, LLC, for the purchase of a Master License to operate a ACUl
franchise business in Maryland, and offered and sold a Master License to a Maryland resident,
Mid-Atlantic Business Coaching, Inc , during times when ACUl was not registered to offer and
sell franchises in Maryland, (b) did not provide the correct offering circular to prospective
Maryland franchisees, (c) did not provide the required disclosure within the time periods
prescribed by the Maryland Franchise Law, (d) failed to comply with the fee deferral requirement
imposed by the Commissioner and the Maryland Franchise Law (e) signed a franchise
agreement with a master franchisee which did not conform to the form of agreement required by
the Commissioner, (f) provided advertising to prospective franchisees which contains earnings
claims in violation of the Maryland Franchise Law, and (g) failed to maintain documents required
by the Maryland Franchise Law On September 19, 2002, the Commissioner and ACUl agreed
to enter into a Consent Order without ACUl admitting or denying any violation of law Under the
Consent Order, ACUl agreed to (a) immediately and permanently cease violating the Maryland
Franchise Law, (b) offer to rescind Mid-Atlantic Business Coaching, Inc's Master License
agreement and refund all franchise fees and cancel any indebtedness upon request, and
(c) implement a franchise compliance program approved by the Commissioner Mid-Atlantic
Business Coaching, Inc declined the rescission offer on October 15, 2002 Following the
Consent Order, the National Franchise Council provided a compliance training program to
ACUI's executives and office staff on October 28, 2002
On September 23, 1999, the California Department of Corporations (the Department) issued a
Desist and Refrain Order to Bradley J Sugars, International Chairman of Action International
Inc [sic], Claude G Xuereb, President & CEO of Action International, Inc [sic], and Action
International, Inc [sic] The Department issued the Desist and Refrain Order based on its
opinion that Action International franchises had been offered for sale in California without first
being registered with the Department In May 2002 and July 2002, ACUl (f/k/a Brad Sugars
Action International, Inc) voluntarily entered into agreements with two Licensed Coaches in
California to terminate the franchise relationships, and ACUl refunded the franchisees a total of
$207 000 The Department has not contacted ACUl regarding this matter since November 2002
ACUl understands that the inquiry is closed, the Department approved ACUl s application to
offer franchises in California in February 2005
Pending
Hannah Business Coaching, Inc and Roger Engelau vs Oak Tree Business Services of Ohio,
LLC and ActionCOACH USA, Inc (Supenor Court of the State of Indiana, Morgan County,
Cause No 55D01-1308-PL-1331)
On August 7, 2013, Hannah Business Coaching, Inc and Roger Engelau (collectively,
"Engelau ), former franchisee and guarantor, respectively, under a Practice Business Coach
Franchise Agreement, dated as of September 27, 2010 (the 'Agreement), filed a Complaint for
Other than these items, no litigation or administrative action involving ACNA or ACUl is required
to be disclosed in this disclosure document
ITEM 4
BANKRUPTCY
Franchise Development Manager, Kane Millspaugh filed a bankruptcy petition under the
provisions of Chapter 7 of the U S Bankruptcy Code after joining ActionCOACH The petition
was filed in July 29, 2010 with the U S District Court of Nevada, Case No 10-24170 The
bankruptcy court entered a discharge in October 27, 2010
Mr Anthony Servidio, COO of ACNA, filed a bankruptcy petition under the provisions of Chapter
7 of the U S Bankruptcy Code on May 22, 2012 The petition was filed with the U S
Bankruptcy Court, District of Nevada, Case No 12-16175-mkn The bankruptcy court entered
a discharge on August 22, 2012
INITIAL FEES
The FIRM
For a FIRM franchise you will pay us an initial franchise fee of $275,000 for a DDMA of up to
15,000 businesses For a DDMA with more than 15,000 businesses the franchise fee will be
calculated by dividing the number of businesses in the DDMA by 15,000 businesses and then
multiplied by 275,000 For example, the franchise fee for a RRM DDMA with a business
population of 16,500 businesses will be calculated as follows (16,500/15,000) x $275,000 =
$302,500 In the year ending December 31, 20132, there were no variances in the franchise
fees paid by FIRM franchisees
The franchise fee is payable in a lump sum and is non-refundable The franchise fees charged
are uniform However, we participate in the Veterans Transition Franchise Initiative (VetFran)
program and offer $5,000 discount on the franchise fee to eligible military veterans
You must also pay us a non-refundable franchisee training fee of $25,000 for you to attend the
10 day training The fee is due upon signing of the franchise agreement
You must pay ACNA a non-refundable technology fee upon signing the franchise agreement of
either $1,250 or $6,750 The technology fee covers the use of the ActionCOACH website,
website hosting an ActionCOACH email address and related technology support The
technology fee is $1,250 for each Business Coach recruited by you If you purchase a FIRM
franchise, you will generally function as one of the Business Coaches, so you will at least pay
the technology fee of $1,250 for yourself when you sign the franchise agreement In addition,
you must recruit an additional eight (8) EBCs You, as FIRM franchisee, have the option of
paying an upfront technology fee in the amount of $6,750 when signing the franchise agreement
which will cover the FIRMs NBC and an unlimited number of EBCs recruited during the
franchise term If you choose to pay the $1,250 upon signing the franchise agreement, you will
later pay (after opening) the individual technology fee of $1,250 as each EBC is recruited
If you are signing a FIRM franchise agreement in connection with the renewal of a previous one
or the transfer of an existing one, in lieu of the franchise fee described above, you will pay the
renewal fee or transfer fee currently at $5,000 each
For a PRACTICE (5 Year) Business Coach franchise, you will pay an initial franchise fee of
$35,000 The franchise fee is payable in a lump sum and is non-refundable The franchise
fees charged are uniform However, we participate in the Veterans Transition Franchise
Initiative (VetFran) program and offer $5,000 discount on the franchise fee to eligible military
veterans You must also pay us a non-refundable franchisee training fee (currently $25,000) for
each person who attends the 10 day training The fee is due upon signing of the franchise
agreement You must pay ACNA a non-refundable technology fee when you sign the franchise
agreement The fee is $1,250 payable in a lump sum when you sign the franchise agreement
For Illinois franchisees only The Illinois Attorney General has determined that we may not be
able to fulfill our obligations to you in the establishment and opening of the business
Accordingly, ACNA has provided a guaranty of performance of our obligations to you
Roya|lty Fee $1 800 if the preceding The 1®' of each Starts on the Srd-month after you or your
month s Gross month NBC completes the training program
Revenues ('GR') is less
than $15,000,
IfGR IS $15,000 up to
$24,999 99-$1,800 +
6 25% of GR in excess
of $15,000,
If GR IS $25,000 up to
$34,999 99 - $2,425 +
4 75% of GR in excess
of $25,000,
If GR IS $35,000 up to
$44,999 99 - $2,900
4 5% of GR in excess of
$35,000,
If GR IS $45,000 up to
$59 999 99 - $3,325 +
4% of GR in excess of
$45,000,
If GR IS $60,000 up to
$74,999 99 - $3,925 +
3 75% of GR in excess
of $60,000,
If GR IS $75,000 up4e
$4,487 + 3 5% of GR in
excess of $75,000
T
$4,779 if GR IS in excess
of $83 333 33
Marketing and 5% of Gross Revenues The 5"' of each Starts on the month after you or your
Advertising Fee ('GR') during the month NBC completes the training program
preceding month if GR is See Note 1 below for definition of Gross
less than $15,000, $500 Revenues'
if GR IS at least $15,000
Technology Fee $1,250 Due on signing Paid to ACNA
Franchise
Agreement
Renewal Fee $2,500 When you sign Paid if you choose to renew at the end of
Renewal the initial franchise term
Franchise
Agreement
Transfer Fee $2,500 With submission Paid if you sell your franchise
of request for
approval of
transfer
(2) Unless otherwise indicated, the fees and payments described above are not refundable,
and are uniformly applied (except if required by different terms that may be contained in
prior forms of franchise agreement) For each type of fee or payment, you must use the
payment method we designate You must furnish us and your bank with any
authorizations necessary to make payment by the methods we require
The following table shows the Other Fees for the PRACTICE (Premium) franchise
$4,487 + 3 5% of GR in
excess of $75,000-
$<1,779 if GR IS in oxcess
of $83 333 33
AND
(b) $1,500 for each EBC
Marketing and 5% of Gross Revenues The 5*^ of each Starts on the month after you or your
Advertising Fee (GR ) during the month NBC completes the training program
preceding month if GR is See Note 1 below for definition of Gross
less than $15,000, $500 Revenues'
if GR IS at least $15,000
However, if you choose to build and maintain a web site, you must obtain our prior approval of
the design, content and appearance of the website and use ACNAs approved supplier for
design development and web hosting to ensure compliance with ACNA's requirements for
usage of the ActionCOACH marks and intellectual property You must acquire from sources of
your choice, and at your expense, a computer and communications system and software and
Internet access that meet ACNA's specifications See Item 7, note 4 and Item 11
Specifications and Supplier Approvals There are no written criteria, no fees, and no formal
process for supplier approval at this time ACNA may issue specifications and standards in the
Manuals or separate directives, in writing or orally, and may modify them at any time ACNA
issues specifications based on its subjective determination of quality, value and appearance
Currently we and ACNA are not approved suppliers, but we may be approved suppliers in the
future We estimate that your purchases of goods and services subject to ACNAs
specifications will constitute about 10% of your total purchases and leases (excluding your initial
franchise fee and training fee) in establishing the business We estimate that during the
operation of your Business Coach business your purchases of goods and services subject to
ACNA's specifications will constitute about 50% to seventy 75% of your total expenses for
goods and services
As of December 31, 20132, ACNA had preferred vendor relationships with the following
independent companies
Company Product
In some cases, the above companies are currently the only source of the product or service
While ACNA encourages you to form relationships with the above companies and to use their
products and services since they offer high quality goods and services to our franchisees for
less than typical market prices, you are, however, not required to use them unless (i)the
products and services you require involve the use of ACNAs proprietary marks or information,
(ii) you are building or maintaining your web site, or (in) for CRM software and related services
In those cases, you must use the applicable approved supplier
We currently do not receive rebates as a result of these Strategic Alliance relationships There
are no approved suppliers in which any of our or ACNA's officers owns an interest However,
as of ACNAs fiscal year ending December 31, 201^, ACNA derived $'1.53^ 6'120.131 23 in
revenues from purchases of products and services made by franchisees In the cases where
any revenues such as volume discounts, rebate fees or discount bonuses (whether by way of
cash, kind or credit) are received by ACNA from any such supplier, whether or not on account of
purchases made (i) by the us or ACNA for its own account or for yours, or (ii) by you directly for
your own account, ACNA shall be entitled to retain the whole of the amount or any part of such
volume discounts, rebate fees or discount bonuses
Neither we nor ACNA provides material benefits to you (for example, additional renewal rights
or additional franchises) because of your purchases of particular products or services or your
use of designated or approved suppliers
ITEM 9
FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements It
will help you find more detailed information about your obligations in these agreements
and in other items of this disclosure document
ITEM 10
FINANCING
Neither we nor ACNA nor its affiliates offer any direct or indirect financing to you We will not
guarantee any note, lease, or other obligation you may make to others
ITEM 11
Except as listed below, we and ACNA are not required to provide you with any
assistance
Before you begin your business, we will (references to the Franchise Agreement are the same
for the FIRM and the Practice)
1 Arrange for you to attend the initial training program provided by ACNA (Franchise
Agreement - Section 7 1(A))
2 Help you write the initial Your Action Plan' document, which serves as a blueprint for your
start-up (Franchise Agreement - Section 7 1(B))
3 Provide you pre-opening guidance and supply you on-line access to advertising and
promotional materials (Franchise Agreement - Section 7 1(C))
4 Assist you in determining the location of your office However, the final selection of the
location IS your responsibility (Franchise Agreement - Section 7 1(D))
5 Loan you a copy of the Confidential Operating Manuals via on-line access containing
mandatory and suggested specifications, standards, operating procedures and guidelines
prescribed by ACNA (Franchise Agreement - Section 7 1(G)) The Manuals are
confidential and remain the property of ACNA ACNA modifies the Manuals but the
modifications will not alter your status and rights under the Franchise Agreement
Currently, the total number of pagos in tho Manuals is 539—^ACNA has implemented an
online WIKI format version of the Manuals which may havo different pagination but
includes substantiallv similar contont as thoand will no longer provide written Manuals The
Table of Contents of the online Manuals is in Exhibit N to this disclosure document
During the year ended December 31, 20132, ACGM spent $?8331.766 67
marketing and advertising for the USA These expenditures were allocated as follows
Total 100%
During our fiscal year ended December 31, 20132, ACOC spent $154,207 0677 923 0-1 from the
Marketing and Advertising Fees remitted by Business Coaches in the Territory ACAI s
expenditures were allocated as follows
Total 100%
These figures are not audited We or ACNA may make financial information relating to these
expenditures available for your review, but we have no contractual obligation to do so
Any Marketing and Advertising Fees not spent in the fiscal year in which we collect them are
retained for use in future years Neither we nor ACNA uses Marketing and Advertising Fees to
solicit for the sale of franchises Neither we nor ACNA is required to spend any specific amount
on advertising in your local area or for the benefit of your Business Coach franchise Neither we
nor ACNA represents or guarantees that you will benefit from marketing programs in proportion
to your contributions
You may not publish or distribute any advertising or promotional material without our approval
If we object to any advertising or promotional material that you are using, you must immediately
stop using it If you operate a web site, you must obtain our prior approval as to the design,
content, and appearance of the website, and we require that you use our approved supplier for
design, development, and hosting We may require you to make your web site accessible only
from our site or to not create links to other sites
ACNA does not have a council of franchisees that advises on advertising policies You do not
have to participate in a local or regional advertising cooperative
You must acquire, maintain, update and/or upgrade computer hardware and software for
managing the business, performing accounting functions, and communicating with us We do
not require you to purchase computer hardware from a specific manufacturer and you can
choose to purchase either a laptop or desktop computer We do require you to obtain a modern
system (Intel or AMD) that is capable of running Miscrosoft XP-Windows 7 and Microsoft Office
2007 with PowerPoint or a system capable of running the latest version of MacOS You must
also have or acquire an external hard drive, Adobe Reader software, Quickbooks or equivalent
finance software, anti-virus software, a web browser, broadband connectivity, fax capabilities
and an uninterruptible power supply and surge protect More detailed specifications are found
in Exhibit O
At your option, you may also acquire a Customer Relationship Management (CRM) software for
managing your interactions with clients and sales prospects This software provides sales
reporting and analysis, information management and communication management
ACNA reserves the right to make changes in the computer and communications system
specifications Neither we, ACNA, any affiliate, nor any third party is obligated to provide
ongoing maintenance, repairs, upgrades, or updates to your computer system
You must acquire, maintain, upgrade and update hardware, software, and ISP or other
communications system during the term of the franchise, at your own expense There are no
limitations on ACNAs right to require upgrades and updates ACNA does not currently
recommend or require a specific type of maintenance, updating, upgrading or support contract
The estimated annual cost for maintaining, updating and upgrading the computer system is
$1,000 for a PRACTICE Franchise and $5,000 for the FIRM Franchise The fees paid for CRM
software do not include maintenance or upgrades
You will use the information and communications system to report to and communicate with us,
for your accounting, and for other tasks we may designate You must transmit information to us
daily or at other intervals that we specify and in the form and manner we specify You must also
give us and ACNA independent access to the ActionCOACH-related information that will be
generated and stored in your computer system There are no contractual limits on our right to
access the information, including sending our representatives to your office location to access
your computer system
We do not select the location of your office or the seminar/meeting venues you use However
you must obtain our written approval of your office location You can locate your office
anywhere in the DDMA (for a FIRM) and in the Designated Territory (for a PRACTICE) The
office must at all times be well presented and of a professional nature You must notify us (in
advance, if possible) if you intend to change your office or if you are unable to operate from your
then-current office location (because of a taking by eminent domain termination of your lease,
mortgage default, damage, or repair, etc) You can request permission to relocate your
PUBLIC FIGURES
Neither we nor ACNA currently uses any public figure or personality to promote the
ActionCOACH Business Coach franchises
ITEM 19
The FTC's Franchise Rule permits us to provide information about the actual or potential
financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable
basis for the information, and if the information is included in the disclosure document
Financial performance information that differs from that included in Item 19 may be given only if
(1)we provide the actual records of an existing outlet you are considering buying, or (2) we
supplement the information provided in this Item 19 for example, by providing information about
possible performance at a particular location or under particular circumstances
Except as set forth in the Tables below, we do not furnish or authorize our salespersons to
furnish any oral or written information concerning the actual or potential sales, costs, income or
profits of an ActionCOACH franchise Actual results will vary from franchise to franchise and we
cannot estimate or predict the results of any particular franchise due to a number of external
and internal factors which we are unable to determine, including but not limited to, management,
competition, demand for our services, economic and market conditions and market
demographics
All data in Tables 1 through 6 were based on unaudited data reported bv the outlets in the
ActionMEMBERS Kev Performance Indicator Svstem on a voluntary basis
Table 1 is a historical representation of the unaudited averaoe annual and average monthlv
Gross Revenues reported bv 148 outlets or 85% of the total 175 outlets as of the fiscal vear
ending December 31. 2013 The 148 outlets fa) have all been ooeratina for at least 12 months
as of December 31. 2013. (b1 are all located in the USA, and (c) include all tvoes of
ActionCOACH Business Coach franchise outlets (FIRM, PRACTICE 5 Years and PRACTICE
Premium) None of the 148 outlets are companv-owned These criteria were chosen to
present historical data that covered 1 full vear of an outlet s operations
Gross Revenues
1 $733,359 00 30 $206,724 00
2 $731,936 00 31 $204,875 00
3 $448,175 00 32 $204,169 00
4 $434,650 00 33 $190,343 00
5 $429,780 00 34 $185,750 00
6 $419.716 00 35 $183,966 00
7 $392,293 00 36 $183,260 00
8 $335,465 00 37 $178.310 00
9 $331,205 00 38 $175,275 00
10 $325,605 00 39 $173,700 00
11 $321,372 00 40 $170,041 00
12 $316,130 00 41 $169,107 00
13 $314,700 00 42 $167,441 00
14 $308,026 00 43 $165,772 00
15 $304,649 00 44 $165,600 00
16 $294,269 00 45 $160,455 00
17 $282,829 00 46 $154,950 00
18 $280,725 00 47 $151,543 00
19 $264,210 00 48 $149.710 00
20 $253,636 00 49 $149.610 00
21 $251,070 00 50 $148,120 00
22 $245,551 00 51 $147,705 00
23 $242,126 00 52 $146,552 00
24 $227,058 00 53 $144,471 00
25 $223,667 00 54 $142,350 00
Tables 3 through 6 represent historical data on the unaudited average of the following as thev
were reported by the 148 outlets operating for at least 12 months as of 31 December 2013 - (a^
Table 3 Sales of 1-to-1 products, (b) Table 4 Sales of Other Products, wherein Other
Products means ActionCOACH products other than the 1-to-1 programs namely, StartUP.
SteoUP. PowerUP. FreedomCOACH and UltimateCOACH. (c) Table 5 Hourly rate charoed.
and (d) Table 6 Diaanostic to Sale conversion rate
Notes
(t) Gross Revenues means the total receipts derived from services performed and
oroducts sold bv or in connection with the Business Any oropertv or services received
from Clients in exchanae for Coachina Services will be included in Gross Revenues at
their fair market value at the time received Gross Revenues also include any proceeds
vou may receive from business interruption insurance Gross Revenues do not include
sales taxes or credits such as the sale once of any products returned bv Clients or other
taxes that an outlet collects from Clients and pay directly to the appropriate
oovernmental authorities
(2) Neither we nor ACNA represent that any of the results in Tables 1 through 6 are
reoresentative of any outlets in our Territory or that any data included in Tables 1
through 6 was derived from outlets in our Territory
(31 Some of the outlets may be working either together formally or informally to derive the
results above and mav have received additional marketing or sales assistance from their
respective master licensees You may not receive additional assistance from us or
ACNA
Table 1 is a historic reprosontation prepared by ACNA of the unaudited average annual and
average menthly Gross Revenues reported by 1^17 AotionCOACH franchisees (or 77% of total
190 franchisees) for the financial year ending December 31 2012—Each of the 1^7 franchisees
in this first subset have boon operating as franchisees for at least 12 months as of December
31 2012 and is located in the USA—This first subset includes all typos of Business Coach
Franchises (FIRM PRACTICE 5 Years and PRACTICE Premium) and none are company-
owned—These criteria were used to gather data that covers 1 full year of a franchisees
operations
Unaudited Statement of Average Gross Revenues of the 147 Franchisoos for the 12
Months ending December 31, 2012
No of Franchisees that
Average Average
attained or exceeded
(Annual) (Monthly)
Average
The results in Tables 2 through 6 were based on unauditod data reported by 52 ActionCOACH
franchisees, which is 35% of the first subset of 1^17 franchisees and 27% of the total franchisees
in the United States—Wo chose this second subset of 52 franchisoos based on the following
criteria—(i) they each have been franchisoos for at least twelve 12 months as of Docombor 31,
2012 (ii) they each have reported in the ActionMEMBERS Key Performance Indicator system
every month from January 2012 up to Docombor 2012 and (in) they each have roachod the
average annual Gross Revenues presented in Table 1
Table 2
Unauditod Annual Gross Rovonuo of 52 Franchisees who Rcachod/Excoeded the
Average Gross Revenue for the 12 Months ending December 31, 2012
Tab\e^
Average 1-to-1 Diagnostic to Client Conversion Porcentago by tho 52 Franchisees
for the 12 Months ending Docomber 31, 2012
Percentage of 52
Category Average Franchisoos that attained
of-exceeded Average
Table 4
Average Coaching Hourly Rate charged by the 52 Franchisees for the 12 Months
ending December 31, 2012
Percentage of 52
V'oioy*"'' y Average Hourly Rate Franchisees that attained
or exceeded Average
Percentage of 52
Average Sales Average Sales
Franchisees that attained
(Annual) (Monthly)
or exceeded Average
Table 6
Average Sales of Other Products of the 52 Franchisees for the 12 Months ending
December 31, 2012
Percentage of 52
Average Sales Average Sales
Franchisees that attained
(Annual) (Monthly)
or exceeded Average
(4) 'Gross Revenues' moans the total rocoipts dorivod from services porformod and
products sold by or in connection with the Business—Any property or services received
from Clients in oxchango for Coaching Services will be included in Gross Revenues at
their fair market value at the time received Gross Revenues also include any proceeds
you may receive from business interruption insurance—Gross Rovonues do not include
salos taxes or credits such as tho sale prico of any products returned by Clients or other
taxos that you colloct from Clients and pay diroctly to tho appropriate governmental
authorities
(2) All franchisees whoso data ore roprosonted in Tables 1 to 6 aro located in the Unitod
States—Neither wo nor ACNA roprosont that any of tho results in Tables 1 through 6 aro
roprosentativo of any franchisee results in our Torritory or that any franchisee data
included in Tables 1 through 6 was derived from franchisees in our Territory
(3) Table 1 is a historic representation of the unaudited hourly rate achieved by the second
subset of 52 franchisees (as set out above) while delivering 1 to -1 Programs for the year
ending Decombor 31, 2012 Tho hourly rato is roprosontativo only of tho hourly rato
Both the first subset of 1^17 franchisees and the 0econd subset of 52 franchisoes include
all types of franchioees (FIRM—PRACTICE 5 Yoar and PRACTICE Premium) as
unauditod Gross Revenues are reported by these franchisoos in our AotionMEMBERS
syotom on a voluntary basis
(&) Some of tho franchiGoes may bo working either together formally or informally to derive
tho results abovo and may havo rocoivod additional markoting or sales assistanoo from
thoir respective master liconsoos You may not reooive additional assistanoo from us or
ACNA
(6) Other Products" in Table 6 means ActionCOACH products othor than the 1 to-1
Programs, namoly, StortUP, StopUP, PoworUP, FroodomCOACH and UltimatoCOACH
CAUTION
The financial performance representation figures do not reflect the cost of sales, operating
expenses, or other costs or expenses that must be deducted from the gross revenue or gross
sales figures to obtain your net income or profit You should conduct an independent
investigation of the costs and expenses you will incur in operating your franchised business
Franchisees or former franchisees, listed in the Disclosure Document may be a source of this
information
Your financial results may differ from the results stated m this financial performance
representation
Historical results are not an indicator of future performance The gross revenue figures stated in
this Item 19 should not be considered as the actual or potential gross revenue figures that will
be realized by you or any prospective franchisee We have not suggested, and do not
guarantee that you will succeed in the operation of your ActionCOACH Business Coach
franchise as significant factors determining success include, your energy and determination to
work hard ability to follow the ActionCOACH system, business acumen and marketing and
sales skills
We offer substantially the same coaching programs for delivery to clients of all franchisees
Although we may suggest prices for coaching programs offered by you, you may offer and sell
coaching programs and services at any price you choose
ACNA will, on reasonable request, make available to you (if you qualify) written substantiation
of the financial performance representation at ACNA's headquarters
If you receive any other financial performance information or projections of your future income
you should report it to ACNA's management by contacting Rosalie Borguilla, Paralegal at 5781
S Fort Apache Rd , Las Vegas, NV 89148, tel no 888-483-2828, the Federal Trade
Commission, and the appropriate state regulatory agency
We only started selling franchises in July 2012 in non-registration states For consistency, we
have provided information as of ACUI's last throe 2_fiscal years ending June 30, 2010, June 30,
2011 and June 30, 2012^ and the period beginning July 1, 2012 up to the close of ACNA's
2_fiscal years on December 31, 2012 and December 31. 2013
Tables 1 throuoh 5 covers the historv of all outlets in the United States for these periods The
numbers in these tables include Business Coach Franchise Agreements issued both bv Master
Licensees and directiv bv ACNA or ACUl in areas where there is no Master Licensee
Table 1 - Svstem wide Outlet Summary for the fiscal years ended June 30. 2012 and
June 30. 2013. the penod from Julv 1. 2012 up to December 31. 2012 and the fiscal vear
ended December 31. 2013
Table 2 - Transfers of Outlets from Franchisees to New Owners (other than Master
Licensee or Franchisors) for Fiscal Years ended 30 June 2011 and 30 June 2012. the
period beginning Julv 1. 2012 up to 31 December 2012 and the fiscal vear ended 31
December 2013
Jun 2011 0
Jun 2012 2
Connecticut
Dec 2012 0
Dec 2013 0
Jun 2011 0
Jun 2012 1
Colorado
Dec 2012 0
Dec 2013 0
Jun 2011 Q
Jun 2012 1
Indiana. Minnesota and Wisconsin
Dec 2012 0
Dec 2013 2
Jun 2011 2
Jun 2012 2
Iowa and Nebraska
Dec 2012 0
Dec 2013 0
Jun 2011 0
Jun 2012 0
North Carolina
Dec 2012 1
Dec 2013 0
Jun 2011 1
Jun 2012 0
Texas - South
Dec 2012 0
Dec 2013 0
Jun 2011 3
Jun 2012 6
Total
Dec 2012 1
Dec 2013 2
NOTE
(1) States that are not listed had no transfer activity during the fiscal years covered by the
table Several multi-state territories are or were each licensed under a single Master
License Agreement and are treated together
Table 3 - Status of Franchised Outlets (Note H for Fiscal Years ended 30 June 2011 and 30
June 2012. the period beginning July 1. 2012 UP to December 31. 2012 and the fiscal year
ended 31 December 2013
Jun 2011 5 4 0 0 0 0 9
Alabama.
Jun 2012 9 0 2 0 0 0 7
Louisiana and
MISSISSIDDI Dec 2012 7 0 1 0 0 0 6
Dec 2013 6 1 2 0 0 0 5
Jun 2011 6 0 1 Q 0 0 5
Jun 2012 5 3 2 0 0 0 6
Arizona
Dec 2012 6 1 0 0 0 1 6
Dec 2013 6 4 1 0 0 Q 9
Jun 2011 1 0 1 0 0 0 0
Jun 2012 0 0 0 0 0 0 0
Arkansas
Dec 2012 0 0 0 0 0 0 0
Dec 2013 0 0 0 Q 0 0 0
Jun 2011 25 0 2 1 Q Q 22
Jun 2012 22 0 1 2 0 1 18
California
Dec 2012 14 1 2 0 0 0 13
Dec 2013 13 0 0 0 0 1 12
Jun 2011 13 1 1 0 0 0 13
Jun 2012 13 1 1 0 0 0 13
Colorado
Dec 2012 13 0 2 1 0 0 9
Dec 2013 9 2 3 0 0 0 8
Jun 2011 7 1 1 0 0 0 7
Jun 2012 7 0 0 2 0 1 4
Connecticut
Dec 2012 4 0 1 0 0 0 3
Dec 2013 3 0 1 0 0 0 2
Jun 2011 12 5 1 0 0 0 16
Jun 2012 16 1 0 Q Q 0 17
Flonda
Dec 2012 11 2 1 0 0 0 18
Dec 2013 18 3 1 0 0 0 20
Jun 2011 16 0 7 3 0 0 6
Jun 2012 6 0 0 0 0 0 6
Georoia
Dec 2012 6 0 0 Q 0 Q 6
Dec 2013 6 1 1 0 0 1 5
Jun 2011 7 0 0 0 0 Q 7
Jun 2012 7 0 1 0 0 0 6
Idaho / Utah
Dec 2012 6 0 2 0 0 0 4
Dec 2013 4 1 1 0 0 0 4
Jun 2011 1 1 0 0 0 0 2
Illinois
Jun 2012 2 0 0 Q 0 Q 2
Dec 2012 2 0 0 0 0 0 2
Dec 2013 2 0 0 Q 0 0 2
Jun 2011 4 1 2 1 0 0 2
Jun 2012 2 0 0 0 0 0 2
Indiana
Dec 2012 2 0 0 0 0 0 2
Dec 2013 2 0 1 0 0 0 1
Iowa / Jun 2011 10 0 1 0 3 0 6
Kentucky
Jun 2012 4 0 0 0 0 Q 4
Dec 2012 4 0 0 0 0 0 4
Dec 2013 4 0 1 0 0 Q 3
Jun 2011 1 0 0 0 0 0 1
Jun 2012 1 0 0 0 0 0 1
Maine
Dec 2012 1 0 0 0 0 0 1
Dec 2013 1 0 0 0 0 0 1
Jun 2011 7 2 1 0 0 0 8
Maryland.
Jun 2012 8 1 3 0 0 0 6
Delaware and
DC Dec 2012 6 0 2 Q 0 0 4
Dec 2013 4 0 0 0 0 0 4
Jun 2011 3 0 1 0 0 0 2
Massachusetts
Jun 2012 2 Q 0 0 0 0 2
Dec 2012 2 1 1 0 0 0 2
Dec 2013 2 Q 1 1 0 0 0
Jun 2011 1 0 1 0 0 0 0
Jun 2012 0 0 0 0 0 0 0
Michiaan
Dec 2012 0 2 1 0 0 0 1
Dec 2013 1 0 Q 0 Q 0 1
Jun 2011 8 0 1 1 0 0 6
Jun 2012 6 0 0 1 0 0 5
Minnesota
Dec 2012 5 0 1 0 0 0 4
Dec 2013 4 0 0 0 0 0 4
Jun 2011 1 0 0 0 0 0 1
Montana. North
Jun 2012 1 0 0 0 0 0 1
Dakota.
Wyomino Dec 2012 1 0 1 0 0 0 0
Dec 2013 Q Q 0 0 0 0 0
Jun 2011 2 0 0 0 0 0 2
Jun 2012 2 3 0 0 0 0 5
Neyada
Dec 2012 5 1 1 0 0 1 4
Dec 2013 4 0 1 0 0 0 3
Jun 2011 10 1 0 0 0 0 11
Jun 2012 11 2 0 1 0 1 11
New Jersey
Dec 2012 11 2 1 0 0 1 11
Dec 2013 11 0 2 1 0 1 7
Jun 2011 1 0 0 0 0 0 1
Jun 2012 1 0 0 0 0 0 1
New Mexico
Dec 2012 1 0 0 0 0 0 1
Dec 2013 1 0 0 0 0 0 1
New York
Jun 2011 5 0 Q 0 0 0 5
Jun 2012 5 0 0 0 0 0 5
NOTES
(1) "Outlets at Start of Year' and "Outlets at End of Year" include all outlets being actively
operated as of the first and last day of the fiscal year, respectively "Outlets Opened
may reflect franchises opened that fiscal year but sold in previous fiscal years The table
does not include outlets that were terminated without ever havinq been operated
(2) Reacquired includes outlets reacquired by us. AGNA or the master licensee in the
pertinent state
(31 States that are not listed had none of the above-described activities durino the fiscal
years covered by the table Several multi-state territories are or were each licensed
under a single Master License Aoreement and are treated together
Table 4 - Status of Company-owned Outlets for Fiscal Years ended 30 June 2011 and 30
June 2012. the period beqinnina July 1. 2012 up to 31 December 2012and the fiscal year
ended December 31, 2013
Ceased
Outlets Outlets
Outlets Termina Non- Re Ooeration
State Year at Start at end of
Ooened tion Renewal acouired / Other
of Year Year
1 reason
Jun 2011 0 0 0 0 0 0 0
Total
Jun 2012 0 0 0 0 0 Q 0
Dec 2012 0 0 0 0 0 0 0
Dec 2013 0 0 0 0 0 0 0
NOTE
States that are not listed had no Business Coach franchise agreement signed but not
open as of December 31. 2013 and have no Business Coach franchise agreements
proiected for the year endino December 31, 2014
Table 1 - System wide Business Coach Outlet Summary for the fiscal years ended June
30, 2010, June 30, 2011, June 30, 2012 and the period from July 1, 2012 up to December
31,2012
NOTE
(4) States that are not listed had no transfer activity during the fiscal years covered by the
table—Several multi state torritorios are or woro oach liconsod undor a single Master
Lioonso Agreement and are troatod togothor
Ceased
Outlets Outlets
vw Tormina- i1 «e- Oporation
State ¥eaF at Start 1
1 1 1 lU Vfill / Other
of Year Jl*
reason
Jun 2010 S 4 3 4 3 3 3
Ji40-2£U4.
U lall 1 k W • • S 4 3 3 3 3 3
Jun 2012 9 0 a 3 0 0 7
Doc 2012 7 3 4 3 3 3 3
Arizona Jun 2010 4 3 3 3 3 3 3
Jun 2011 § 0 4 3 3 3 3
Jun 2012 3 a 3 3 3 3
Dec 2012 § 4 3 3 3 4 3
Arkansas Jun 2010 4 4 3 3 4 3 4
Jun 2011 4 3 4 3 3 3 3
Jun 2012 0 3 3 3 3 3 3
Doc 2012 0 3 3 3 3 3 3
California -lua-2Q4£l 2© 4 4 0 3 4 as
inn *^011
UUI 1 1 1 as 3 a 4 3 3 aa
Jun 2012 aa 3 4 a 3 4 43
Dec 2012 44 4 a 3 3 3 43
Colorado Inn 9010
WWII bVIW 43 4 4 3 3 3 43
Jun 2011 43 4 4 3 3 3 43
Jun 2012 43 4 4 3 3 3 43
Dec 2012 43 3 a 4 3 3 43
Connecticut Jun 2010 7 a 4 4 3 3 7
Jun 2011 7 4 4 3 3 3 7
Jun 2012 7 3 3 a 3 4 4
Doc 2012 4 3 4 3 3 3 3
Florida Jun 2010 4a 4 4 3 3 3 4a
Jun 2011 43 3 4 3 3 3 43
Jun 2012 43 4 3 3 3 3 47
Doc 2012 47 a 4 3 3 3 43
Georgia Jun 2010 4& a 4 3 3 3 43
Jun 2011 43 3 7 3 3 3 3
Jun 2012 3 3 0 3 3 3 3
Dec 2012 3 3 3 0 3 3 3
Jun 2010 43 4 4 3 3 3 7
Jun 2011 7 3 3 3 0 0 7
Jun 2012 7 3 4 3 3 3 3
Doc 2012 3 3 a 3 3 3 4
Illinois Jun 2010 a 3 3 4 3 3 4
Jun 2011 4 4 3 3 3 3 a
Jun 2012 a 3 3 3 3 3 a
Dec 2012 a 3 3 3 3 3 a
Jun 2012 0 0
Doc 2012 0 0 0
New York Inn u^v
L/urr rrun
IV §
Jun 2011 0
0 0 0
Doc 2012
1...^ on-in
wn V I V 44 0 44
Inn *^011
U Lll I %V I I 44 0 44
Jun 20i: 44 4 40
Doc 2012 40 0 44
Ohio - Northern liinOTLlil
vul r 41.V IV 0
Inn ^ni 1
UUI I ILXf 1 I 0
0
Doc 2012 0
Ohre—Southern Jun 2010 40 0 44
Jun 2011 44 0 0 44
Jun 2012 44
0 0
Oklahoma Jun 2010 0 0 0
Jun 2011 0
0 0
Dec 201: 0 0 0 0
Ornnnn
1 VU VPt Inn "^010
Wl I ILV I V 0
l..nI LIV
oni i
'I I 6 0
Inn r>ni?
OVIIY MiAJ III 0
Doc 2012 0 0 0
Pennsylvania liinOfVin
wn IIIV IV 33 0 0 40
Eastern Jun 2011 40 40
Jun 2012 40 0 43
Doc 2012 43 0 40
Pennsylvania Jun 2010 0
Western Jun 2011 0 0
Inn '^01'^
wvi • I L V i ^
NOTES
'Outlots at Start of Year and 'Outlete at End of Year include all busineso coach outlets
being aotivoly oporated as of the first and laet day of the fiscal yoor, rospectively
Outlots Oponod may rofloct franchisos oponod that fiscal year but solo in previous
fiscal yoars—The table does not include businoss ooach outlots that wore terminated
without over having boon operated
(2) Reacquired includes businoss coach outlots roacquirod by us AGNA or the master
liconsoo in tho pertinent state
{2) States that are not listed had none of the above doscribod activities during tho fiscal
yoars covered by tho table—Several multi state territories are or were each licensed
under a single Master License Agreement and are treated together
Ceased
Outlets r\» Outlets
T
1 WIHIII lU
- Non- Re- Operation
State Year 3t Stsrt BAUAAUAI ^ • «1 #1 at end of
fc • V • • lu inroT
of Yoar ¥eaf
• dacwi'i
XAIAI
1 viai Jun2010 0 0 0 0 0 0 0
Jun 2011 0 0 0 0 0 0 0
Jun 2012 0 0 0 0 0 6 0
Doc 2012 0 0 0 0 0 6 0
NOTE
No states woro listed above sinco no stato had any company owned Business Coach
outlet activity during each of the periods coversd by the table and no company owned
Business Coach outlet operating at the end thereof
(2) Reacquired inoludes business coach outlets roacquired by us, ACNA or the master
licensee in the pertinent state
Franchise
MA
Qf^tn
ViCiiV
asof Docomber31,
2042 Company Owned
ArtTrsnn
t il Id 4 § 0
California 0 € 0
Colorado S 4 0
Connocticut 0 2 Q
Florida 0 2 0
Iri^hn
fuonvif 0 4 9
• II 0 2 0
Indiana 0 2 Q
Iowa and Nobraska 0 7 9
Maryland/Dcbwaro/D C 0 4 0
Minnesota 0 2 9
1 1U V LJCICI 0 4 9
New Jersey 0 4 9
Now Moxico 0 4 9
Now York 0 4 0
North Carolina 0 § 0
©hie—North 0 2 0
Ohio South 0 § 0
Ponncylvania East 0 4 0
PonnGvlvania Woct 0 4 0
Texas—North 0 4 0
Texas—South 4 42 0
Lliah 0 4 0
\V M'uiriici 0 4 0
Washington 0 4 0
Wisconsin 0 & 0
Total 7 73 0
NOTE
(4^ States that aro not listed had no Businoes Coach franchise agroomont signod but not
opon as of DGcomber 31, 2012 and have no Businoss Coach franchise agroomonts
projected for tho year ending Deoember 31, 2013
Exhibit J to this disclosure document is a list of all ActionCOACH Business Coaches in the
USA as of December 31, 20132
Exhibit K to this disclosure document lists the names and last known home addresses and
telephone numbers of every U S Business Coach who had a Business Coach Franchise
Agreement terminated, canceled, or not renewed or who otherwise voluntarily or involuntarily
ceased to do business under a Business Coach Franchise Agreement during ACNA's fiscal
year ending December 31, 20132 The list also identifies any U S Business Coach who had
not communicated with ACNA or their Master Licensee within 10 weeks of March 28, 20143 If
you buy this franchise, your contact information may be disclosed to other buyers when you
leave the franchise system
In some instances within the periods covered by the tables in this Item 20, current and former
franchisees have signed confidentiality clauses provisions restricting their ability to speak
openly about their experience with ActionCOACH You may wish to speak with current and
former franchisees, but be aware that not all these franchisees will be able to communicate with
you
FINANCIAL STATEMENTS
2 ACNA's audited financial statements for the fiscal year endingDecember 31, 20132
ITEM 22
CONTRACTS
Exhibit F Release
We also require that you fill out a Compliance Questionnaire before signing a Business Coach
Franchise Agreement The Compliance Questionnaire is in Exhibit G
ITEM 23
RECEIPTS
Included at the end of this disclosure document are 2 detachable Receipts You must sign and
date both Receipts and deliver 1 of the signed Receipts to us at least 14 calendar days (or 10
business days, in certain states) before you sign the Business Coach Franchise Agreement or
pay us any money
I ^
\
/
/
Document Separator Sheet
Patch II
r
J ^? COACH
business coaching
EXHIBIT A
To
BUSINESS COACH
THE FIRM
THE FIRM
"Minimum Royalty" means the minimum Royalty Fee calculated in accordance with the MBCR
and as outlined in Attachment 1
"Nominated Business Coach" or "NBC" means the Firm Owner personally serving as
Business Coach or the person appointed by the Firm Owner (subject to conditions herein) to
provide Coaching Services to Clients on behalf of the Business and has authonty to bind you in
any dealings with Master Licensee and Franchisor At least one (1 ) Firm Owner must personally
serve as a Nominated Business Coach throughout the Term unless Master Licensee agrees to
shorten this period in accordance with any conditions the Master Licensee may reasonably
request You may appoint a Nominated Business Coach in lieu of a Firm Owner as long as such
individual (i) has been approved by Master Licensee and trained by Franchisor and (ii) has
signed a Nominated Business Coach Agreement with you and the Master Licensee
"System" means the business methods specifications procedures and accumulated trial and
error developed and to be developed by Licensor and/or Franchisor for the operation and
management of a Business
"Territory Size Factor" or "TSF means (i) 1 0 or (ii) The difference in the number of
businesses greater than fifteen thousand (15 000) divided by fifteen thousand (15 000) then
multiplied by 0 5 and added to 1 0 whichever is higher and for greater certainty the TSF number
IS set forth in Attachment 1
B Operate the Business from the office location only as set forth in Section 9
and
C Use the Marks and the System as they may be modified and developed
from time to time on a non-exclusive basis in the operation of the Business
12 This Agreement does not include the right to sell products to any vendor who would in
turn sell to consumers the nght to sell any product except through the Business or the
right to perform any Coaching Services other than through the Business
45 Any amount due under this Agreement that is not paid on or before the due date will
accrue interest daily at the rate specified m Attachment 1 Each failure to pay Royalty
Fees Marketing and Advertising Fees or any other amount payable to Master Licensee
when due is a material breach of this Agreement
46 You will establish a separate bank account for the Business and use the method(s)
specified from time to time by Master Licensee or Franchisor for the payment of
Royalty Fees Marketing and Advertising Fees and all other fees and amounts owed
You will furnish Master Licensee, Franchisor and your bank with such authonzations as
may be necessary to effect payment by the method required by Master Licensee or
Franchisor
47 With the exception of the Franchise Fee and Training Fee You must make all payments
to Master Licensee with respect to amounts owed by You to Master Licensee pursuant to
this Agreement by means of direct debit into a bank account nominated by Master
Licensee and must prior to commencing operation of the Business A) nominate in
writing to Master Licensee a bank account from which Master Licensee will direct debit
the payments and B) sign Attachment 7 and all necessary forms and consents permitting
the direct debit of funds from the bank account in the manner and on the dates specified
in writing by Master Licensee Master Licensee mav. at its sole discretion, specifv another
form of pavment. and You agree to make oavment through the method specified bv Master
Licensee in writing as well as sign ail reasonably necessary forms and consents to permit
the said newly specified pavment method
48 You must pay for the cost of any of Master Licensee s administrative fees connected with
the failure of your direct debit facility
49 You have no nght of set off as against Master Licensee or Franchisor You must not for any
reason withhold payment of any amount due to Master Licensee or Franchisor This
applies even if You allege that Master bcensee has not performed or is not perfomiing an
obligation imposed upon it under this Agreement or a related agreement Master Licensee
may accept any part payment without prejudice to its nght to recover the balance due or
pursue any other remedy Master Licensee may set off against any payment due to You by
Master Licensee any of your unpaid debts to Master Licensee
4 10 Notwithstanding the provisions of Sections 4 1 and 4 2 you must pay the Royalty Fee and
the Marketing and Advertising Fee directly to the Franchisor if you receive a written notice
from the Franchisor to that effect Provided you comply with that notice your obligations to
the Master Licensee under those clauses will be discharged
51 You will advertise and promote the Business at your own expense and in accordance
with the Manuals However You may not publish or distribute any advertising or
promotional material unless it has been approved in writing by Master Licensee which
approval will not be unreasonably withheld or unduly delayed If Master Licensee objects
to any advertising or promotional material that you are using you must immediately stop
using It Advertising and promotional matenals furnished by Master Licensee may be
used only in the manner and during the penod specified by Master Licensee Master
Licensee has the nght to charge reasonable fees for any materials that Master Licensee
provides
52 You acknowledge that unless otherwise specified by Franchisor in writing forty percent
62 While this Agreement is in effect and for three (3) years after its expiration or termination
or after any transfer approved under Section 20 Master Licensee and Franchisor have the
right to request receive inspect and audit any of the records referred to in Section 6 1
Master Licensee and Franchisor agree to do inspections and audits at reasonable times
You agree to keep all original records reports invoices order fonns and calculations for at
least SIX (6) years from the date they were generated or for a longer penod if required by
applicable law Should any inspection or audit disclose a deficiency in the payment of any
Royalty Fee Marketing and Advertising Fee or other amounts required to be paid under
this Agreement you will immediately pay the deficiency to Master Licensee In addition if
the deficiency for any audit penod equals or exceeds five percent (5%) of the correct
amount due you must also immediately pay to Master Licensee the reasonable cost of
the inspection or audit including travel lodging meals salaries and other expenses of the
inspecting or auditing personnel Should the audit disclose an overpayment of any
Royalty Fee Marketing and Advertising Fees or other amounts due Master Licensee or
Franchisor will promptly pay the amount of the overpayment to you provided that the
amount exceeds Fifty Dollars ($50 00)
A Arrange for you Key Personnel and your Business Coaches to attend
Franchisor s training program
D Each week for the first ninety (90) days after you complete the
ActionCOACH training program provide access via conference or
personal calls to discuss any operational challenges and assist you in
examining your results from your weekly reports Thereafter Master
Licensee will conduct or arrange for periodic conference calls (as
determined by Master Licensee in its absolute discretion) with you to
discuss operational challenges and conduct ongoing training
E Grant approval of your office location and assist you in determining the
location of your office The selection of your office location will be your
responsibility
an online WIKI format version of the Manuals and any amendments thereto
8 10 You acknowledge that it is necessary for Franchisor and Master Licensee to identify
manage and service Blue Chip Accounts to ensure the consistent delivery and co
ordination of Coaching Services provided to Blue Chip Accounts
91 You can locate your office anywhere within the DDMA The office must at all times be
well presented and of a professional nature Your approved office location is specified in
Attachment 1 You must notify Master Licensee (in advance if possible) if you intend
to change your office location or if for any reason you are or will be unable to operate the
Business from your then-current approved office location (such as a taking by
eminent domain termination of your lease mortgage default or damage or repair) The
Term of this Agreement will not be extended by any such interruption nor will you be
excused from paying Markebng and Advertising Fees or Royalty Fees during such
interruption
92 Your office must comply at your sole cost and expense with the fit out guide contained in
the Manuals which may be amended from time to time
93 You confirm your approval of any office location which is specified in Attachment 1 and
acknowledge that You have
A made all necessary enquiries and have conducted your own due diligence
in relation to the office location
SECTION 10 - MANUALS
10 1 You acknowledge that the Manuals are furnished to you on loan and that they remain
the sole property of Licensor at all times You must not make any copies (paper
electronic or otherwise) of the Manuals You agree to immediately return the Manuals to
B Operating procedures
E Dress codes
H Insurance requirements
10 3 You agree to operate the Business in accordance with the Manuals as modified from time
to time Failure to comply with the standards set forth in the Manuals will constitute a
material breach of this Agreement
11 1 You agree to use your best efforts to increase the reputation of and demand for
Coaching Services in the DDMA
11 2 You agree to strictly comply with all present and future standards specifications
and procedures prescribed by Licensor or Franchisor and communicated by Master
Licensee or set out in the Manuals including but not limited to the following requirements
A You your NBC and all your EBCs must complete the ActionCOACH
training program at a location designated by Franchisor You must
complete training before the Business opens Your Business Coaches are
not permitted to provide Coaching Services until after they have
completed the relevant training Attendance by You at Franchisor s
Regional Conferences is mandatory You are responsible for all salary
travel expenses and other expenses of persons attending programs
seminars and conferences offered by Franchisor or Master Licensee
C You must identify all of your employees to Master Licensee and must
ensure that they are suitably qualified to run the Business properly You
must keep Master Licensee informed at all times regarding the names
background and expenence of all personnel
D You your NBC and your EBCs may offer only the Coaching Services
and related products approved by Franchisor for sale by Business
15 4 You must immediately inform Master Licensee of any suspected known or threatened
infringement of or challenge to the Marks or unauthorized disclosure or use of
Confidential Information You must assist and cooperate with Master Licensee Franchisor
and Licensor in taking such action if any as they deem appropriate to protect the
Confidential Information and the Marks
15 5 You agree that all data you collect from Clients and prospective clients in connection with
the Business is deemed to be jointly owned by Master Licensee and Franchisor You
are licensed to use such data only while this Agreement is in effect Upon
expiration or termination of this Agreement or an approved transfer of the Business to a
new owner you must comply with Secton 17 and not use any Client or prospective
client data for any purpose contrary to Section 15 2
16 1 During the Term of this Agreement -you may not either directly or indirectly through
any other person or entity participate in be employed by act as a Business Coach
Goachfor anv similar caoacitv) to provide financial assistance to or acquire any interest in
any business that offers business Goachino and mentoring services in competition with or
similar to anv of the Coaching Services ( Competing Business ) to clients in the U S A
16 2 The restriction in Section 16 1 will also apply for a continuous two (2) year period after
the expiration or termination of this Agreement or after a transfer approved under Section
20 but only as to clients in the Master Licensee s Temtory and within one hundred (100)
miles of the Master Licensee s Terntory In addition for two (2) years after the expiration
termination or approved transfer of this Agreement you will not solicit for the benefit of any
Competing Business any person who was a Client of the Business during the two (2) years
immediately before expiration termination or transfer
16 3 Dunng the term of this Agreement and for a continuous two (2) year period after its
expiration or termination or after a transfer approved under Section 20, you may not
employ or otherwise interfere with the employment relationship of any person who is
employed by Licensor Franchisor or Master Licensee
16 4 Master Licensee and Franchisor have the nght unilaterally to reduce the scope of
any restriction in this Section 16 by wntten notice to you
16 5 This Section and Section 15 apply to your NBCs EBCs employees and individuals holding
an ownership interest in the Business and any persons or legal entities controlled by the
foregoing individuals At Master Licensee s request you must furnish Master Licensee with
executed agreements from such individuals in forms acceptable to Master Licensee in
which they agree to be bound by Sections 15 and 16
16 6 You agree that damages caused to Master Licensee Franchisor and Licensor for failure to
comply with Section 15 or Section 16 are irreparable You agree that Master Licensee
Franchisor and Licensor mav. notwithstanding the provisions of Section 22 9 hereof, seek
injunctive relief without notice to you in addition to any other relief that may be available to
them for breach of Section 15 or Section 16
16 8 If a court or arbitrator determines that any restriction or provision in this Section 16 strictly
applied would be invalid or unenforceable then the restnction or provision will be deemed
modified to the extent necessary (but only to that extent) to make it valid and enforceable If
a dispute regarding enforceability of Section 16 2 or 16 3 is resolved in favor of Master
Licensee and Franchisor the two (2) year period (or the penod deemed to be reasonable by
the court or arbitrator) will run from the date of the order permitting its enforcement
17 1 Termination by You
If you are in compliance with this Agreement and Master Licensee materially breaches this
Agreement and fails to cure the breach within sixty (60) days after you deliver a written notice of the
breach to Master Licensee you may terminate this Agreement effective ten (10) days, after you
deliver a notice of termination to Master Licensee You must comply with the provisions of Section
18
In addition to its other rights of termination contained in this Agreement Master Licensee will
have the right to terminate this Agreement by written notice effective immediately if you
22 10 Notices
All notices pursuant to this Agreement must be in writing and be delivered in person or mailed
by certified or other receipted mail or by Federal Express or other receipted commercial
delivery service or by facsimile or electronic mail The addresses for notice will be those set
forth in Attachment 1 You or Master Licensee with notice to the other party may change the
address to which notices will be sent
22 11 Successors
This Agreement will mure to the benefit of and be binding on you and Master Licensee and your
and Master Licensees respective successors assigns heirs executors administrators and
Address
City State
Routing Number
Please debit payments from my (ctreck onef (valid routing #8 must start with 0.1.2. or 3)
n Savinos Account fcontact your financial institution for Routing#) Account Number
Frequency of payment
/ /
Date of last payment footional) n Monthly on the 5'" (MARKETINGS
/ /
Deduction Amount
ROYALTY If you fiave signed a franchise agreement witfi percentage based Royalty Fee you will be deducted the amount due
based on gross revenues reported in tfie ActionMEIVIBERS KPI system
MARKETING If vou have signed a francfiise agreement with percentage based Marketing and Advertising Fee, you viflll be
deducted the amount due based on gross revenues reported in the ActionMEMBERS KPI system
AGREEMEN"T
I authorize fName of Master Licenseel to process debit entries to my account I understand that ttiis authority will remain in effect
until I provide reasonable notification to temninate autfionzation
42
ActionCOACH business coaching
EXHIBIT B-1
To
BUSINESS COACH
THE PRACTICE
5 Year
BUSINESS COACH FRANCHISE AGREEMENT
ATTACHMENT 1 FEES AND SPECIFICATIONS
"Direct Marketing" means communication to prospective clients within the DDMA by direct mail
telemarketing email marketing door-to-door marketing broadcast faxing voicemail marketing
couponing or direct selling The Franchisor has the sole right to determine whether or not any other
activity or marketing method not defined herein is considered as Direct Marketing and its decision shall be
binding on all parties
"Designated Direct Marketing Area" or "DDMA" means the areas specified in Attachment 3 for the
purpose of Direct Marketing to prospective clients and Clients Master Licensee identifies the DDMA as a
geographical area defined by zip codes postal codes and/or counties
"Gross Revenues" means the total receipts derived from services performed and products sold by or in
connection with the Business Any property or services received from Clients in exchange for Coaching
Services will be included in Gross Revenues at their fair market value at the time received Gross
Revenues also include any proceeds you may receive from business interruption insurance Gross
Revenues do not include sales taxes or credits such as the sale price of any products returned by Clients
or other taxes that you collect from Clients and pay directly to the appropnate governmental authorities
"Manuals" means the operations manuals, policy statements directives and other written instructions
issued by Franchisor with respect to the System, including, without limitation, information and matenals
posted in the Intranet areas of the ActionCOACH website Part or all of the Manuals may be issued in
electronic form Franchisor may amend the Manuals from time to time
"Marks" means the marks listed in Attachment 1 and such other registered and unregistered trade
names trademarks service marks logos commercial symbols Internet domain names web site
Identifiers designs color schemes, and trade dress as Franchisor may designate from time to time for
use with the System
"Nominated Business Coach" or "NBC" means the specific individual who is authorized by Master
Licensee and you to provide Coaching Services to Clients on behalf of the Business Only one person
may be the Nominated Business Coach at any given time Ordinarily you must personally serve as the
Nominated Business Coach throughout the Term You may appoint another individual to serve as
Nominated Business Coach only if (i) Master Licensee approves you in writing to appoint a Nominated
Business Coach and (ii) the proposed Nominated Business Coach (a) has been approved by Master
Licensee and trained by Franchisor (b) has signed a Nominated Business Coach Agreement with you
and the Master Licensee and (c) has direct responsibility for all operations of the Business and the
authority to bind you in any dealings with Master Licensee or Franchisor
"System" means the business methods specifications, procedures and accumulated trial and error
developed and to be developed by Licensor and/or Franchisor for the operation and management of an
ActionCOACH business coaching and mentonng business
I You must pay Master Licensee the Renewal Fee specified in Attachment 1
J You must have attended at least ninety percent (90%) of Franchisor s Regional
conferences If You have not met this requirement, Franchisor may allow You to
re-attend Franchisee Training to remedy non-compliance However You must
pay the then-current Franchisee Training Fee
31 You must pay Master Licensee the Franchise Fee specified in Attachment 1 upon signing this
Agreement
32 You must pay Master Licensee the Training Fee specified in Attachment 1 upon signing of this
Agreement
33 You must pay to Franchisor the Technology Fee specified in Attachment 1 upon signing this
Agreement and at each renewal
34 You must pay or reimburse Master Licensee on demand for all Master Licensees costs
(including legal costs) in connection with or incidental to the instructions for and the negotiation
preparation and execution of this Agreement and all related agreements
35 The Franchise Fee Training Fee and Technology Fee are not refundable in whole or in part
under any circumstances
41 On or before the first (1®*) day of each calendar month you must pay Master Licensee a Royalty
I Fee as set forth on Attachment 1 No Royalty Fee is due until the third (3^)-month after which
you or your NBC complete the ActionCOACH induction training program
42 On or before the fifth (5'*') day of each calendar month you must pay Master Licensee a
Marketing and Advertising Fee as set forth on Attachment 1 provided however that no
Marketing and Advertising Fee is due with respect to Gross Revenues in the month in which you
or your NBC as applicable complete the ActionCOACH induction training program Each
Marketing and Advertising Fee payment must be accompanied by a statement of the preceding
month s Gross Revenues on a form approved by Master Licensee
43 Any amount due under this Agreement that is not paid on or before the due date will accrue
interest at the rate specified in Attachment 1 Each failure to pay Royalty Fees Marketing and
Advertising Fees or any other amount payable to Master Licensee when due is a matenal breach
of this Agreement
44 You will establish a separate bank account for the Business and use the method(s) specified from
time to time by Master Licensee or Franchisor for the payment of Royalty Fees Marketing and
Advertising Fees and all other fees and amounts owed You will furnish Master Licensee
Franchisor and your bank with such authonzations as may be necessary to effect payment by the
method required by Master Licensee or Franchisor as set out in Section 4 5
46 You must pay for the cost of any of Master Licensee s administrative fees connected with the
failure of your direct debit facility
47 You have no nght of set off as against Master Licensee or Franchisor You must not for any
reason withhold payment of any amount due to Master Licensee or Franchisor This applies even
if You allege that Master Licensee has not performed or is not performing an obligation imposed
upon It under this Agreement or a related agreement Master Licensee may accept any part
payment without prejudice to its right to recover the balance due or pursue any other remedy
Master Licensee may set off against any payment due to You by Master Licensee any of your
unpaid debts to Master Licensee
51 You will advertise and promote the Business at your ovim expense and in accordance with the
Manuals However you may not publish or distribute any advertising or promotional matenal
unless It has been approved in writing by Master Licensee which approval will not be
unreasonably withheld or unduly delayed If Master Licensee objects to any advertising or
promotional matenal that you are using you must immediately stop using it Advertising and
promotional materials furnished by Master Licensee may be used only in the manner and dunng
the period specified by Master Licensee Master Licensee has the nght to charge reasonable
fees for any materials that Master Licensee provides
52 You acknowledge that unless otherwise specified by Franchisor in writing forty percent (40%) of
the Marketing and Advertising Fees will be sent by Master Licensee to Franchisor for its use in
local regional or national marketing and advertising Franchisor will direct all marketing
programs supported by Marketing and Advertising Fees with final discretion over creative
concepts materials and media used in the programs and their placement Franchisor may use
the fees for any activities that they believe would benefit ActionCOACH businesses generally
including but not limited to, national and international advertising promotion creative
development production of advertising and promotion marketing research and development
public relations Internet and reasonable administrative expenses related to these efforts
Franchisor and Master Licensee may use the Marketing and Advertising Fees to pay the costs of
a) developing and conducting advertising and promotional campaigns as determined by
Franchisor or Master Licensee in its sole discretion including customer database development
and management b) developing and funding advertisements c) sourcing the production of
marketing materials and other sales matenals, d) conducting research including research in
relation to products and customers e) developing public relations customer and supply relations
f) engaging advertising agencies and marketing consultants, g) coordinating the activities set out
above and administering the Marketing and Advertising Fees including reasonable overhead and
administrative costs the cost of matenals and employees salaries and pnnting costs and h)
payment of accountancy legal and other fees in respect of audits of the records of the Marketing
Fees Franchisor and Master Licensee may determine in its discretion how the Marketing Fees is
spent
C Provide you with guidance on pre-opening and opening activities for the
Business pnor to and including its first two (2) weeks of operation This will
include on-line access to advertising and promotional matenal and may include
guidance on advertising and promotional programs
D Each week for the first ninety (90) days after you complete the ActionCOACH
training program provide access via conference or personal calls to discuss any
operational challenges and assist you in examining your results from your weekly
reports Thereafter Master Licensee will conduct or arrange for penodic
conference calls (as determined by Master Licensee in its absolute discretion)
with you to discuss operational challenges and conduct ongoing training
E Grant approval of your office location and assist you in determining the location
of your office The selection of your office location will be your responsibility
F Arrange for you or your Nominated Business Coach (if applicable) to attend
Franchisor s annual conferences There will be a conference fee and you must
pay all travel and living expenses of your attendee(s) Master Licensee may also
hold such conferences within the Designated Territory Unless waived by
Franchisor in writing, attendance by you at Franchisor s Regional North American
Conferences is mandatory
online WIKI format version of the Manuals and any amendments thereto
promulgated by Franchisor via online access The Manuals for your Nominated
Business Coach will be supplied to you via on-line access once Master Licensee
receives an executed copy of the Nominated Business Coach Agreement and
the Training Fee has been paid
H Inform you of any changes and improvements to the System that may be
developed by Franchisor or Licensor and authorized for use by ActionCOACH
business coaches in the U 8 A
72 Master Licensee will offer you such additional guidance and assistance as Master Licensee
deems necessary or advisable Failure of Master Licensee to provide any particular service
either initial or continuing will not excuse you from paying any of the fees including but not limited
to the Franchise Fee Royalty Fees or Marketing and Advertising Fees
81 Your franchise is non-exclusive There will be other Business Coaches providing Coaching
Services in the Designated Territory In addition Franchisor and Licensor may sell products in
the Designated Territory via Across-Area Marketing Programs Master Licensee will
communicate to you any policies that Franchisor or Licensor issues to coordinate Across-Area
Marketing Programs
82 You may not advertise in any media whose pnmary circulation or footprint is outside of the
Designated Territory nor may you engage in Direct Marketing to clients or prospects outside of
the Designated Temtory or within a DDMA Franchisor and Master Licensee may establish terms
and conditions under which you may advertise on the Intemet Should you receive a request for
SECTION 10 - MANUALS
10 1 You acknowledge that the Manuals are furnished to you on loan and that they remain the sole
property of Licensor at all times You must not make any copies (paper electronic or otherwise)
10 2 Licensor or Franchisor may revise the Manuals at any time and from time to time Master
Licensee will communicate any such changes to you Such revisions may include changes with
respect to
B Operating procedures
E Dress codes
H Insurance requirements
10 3 You agree to operate the Business in accordance with the Manuals as modified from time to
time Failure to comply with the standards set forth in the Manuals will constitute a matenal
breach of this Agreement
111 You agree to use your best efforts to increase the reputation of and demand for Coaching
Services in the Designated Territory
11 2 You agree to strictly comply with all present and future standards specifications and procedures
prescribed by Licensor or Franchisor and communicated by Master Licensee or set out in the
Manuals including but not limited to the following requirements
15 5 You agree that all data you collect from Clients and prospective clients in connection with the
Business is deemed to be jointly owned by Master Licensee and Franchisor You are licensed to
use such data while this Agreement is in effect Upon expiration or termination of this Agreement
or an approved transfer of the Business to a new owner you must comply with Section 18 and
not use any Client or prospective client data for any purpose contrary to Section 16 2
16 1 Dunng the Term of this Agreement you may not, either directly or indirectly through any other
person or entity participate in be employed by act as a seaeh-Business Coach (or anv similar
capacity) to provide financial assistance to or acquire any interest in any business that offers
business coachino and mentonno services in competition with or similar to anv of the Coaching
Services ("Competing Business") to clients in the U S A
16 2 The restriction in Section 16 1 will also apply for a continuous two (2) year penod after the
expiration or termination of this Agreement or after a transfer approved under Section 20 but only
as to clients in the Master Licensees Terntory and within one hundred (100) miles of the Master
Licensees Territory In addition for two (2) years after the expiration, termination or approved
transfer of this Agreement, you will not solicit for the benefit of any Competing Business any
person who was a Client of the Business during the two (2) years immediately before expiration
termination, or transfer
16 3 During the term of this Agreement and for a continuous two (2) year period after its expiration or
termination or after a transfer approved under Section 20 you may not employ or otherwise
interfere with the employment relationship of any person who is employed by Licensor
Franchisor or Master Licensee
16 4 Master Licensee and Franchisor have the right unilaterally to reduce the scope of any restriction
in this Section 16 by written notice to you
16 5 This Section and Section 15 apply to your NBCs employees and individuals holding an
ownership interest in the Business and any persons or legal entities controlled by the foregoing
individuals At Master Licensees request you must fumish Master Licensee with executed
agreements from such individuals in forms acceptable to Master Licensee, in which they agree to
be bound by Sections 15 and 16
16 6 You agree that damages caused to Master Licensee, Franchisor and Licensor for failure to
comply with Section 15 or Section 16 are irreparable You agree that Master Licensee,
Franchisor and Licensor mav. notwithstandino the provisions of Section 22 9 hereof, seek
injunctive relief without notice to you, in addition to any other relief that may be available to them
for breach of Section 15 or Section 16
16 7 In the event of a breach of the provisions of Sections 15 or 16, Franchisor is entitled to liquidated
damages from you in the amount of Two Hundred Fifty Thousand Dollars (US$250 000 00) You
expressly agree that this amount is not a penalty but a reasonable estimate of the damages that
would result from any such breach In the event that legal action becomes necessary for the
enforcement of any of the provisions of Sections 15 or 16 of this Agreement or to collect the
liquidated damages provided herein the prevailing party shall receive in addition to any other
damages or relief awarded its reasonable attorney s fees, together with appropnate costs and
interest You agree that in the event of a breach of any of the provisions of Sections 15 or 16
Franchisor shall be entitled, notwithstanding the provisions of Section 22 9 hereof, to recover
provisional or permanent iniunctive relief as well as liquidated damages and that the liquidated
Nothing in this Section 22 9 bars any person s right to seek preliminary provisional or
2210 Improvements
If Franchisee develops any improvement in the System Franchisee will promptly notify Master Licensee
and will provide all necessary information to Master Licensee All such changes and improvements will
be the sole property of Franchisor
22 11 Notices
All notices pursuant to this Agreement must be in writing and be delivered in person or mailed by certified
or other receipted mail or by Federal Express or other receipted commercial delivery service, or by
facsimile or electronic mail The addresses for notice will be those set forth in Attachment 1 You or
Master Licensee with notice to the other party may change the address to which notices will be sent
22 12 Successors
This Agreement will mure to the benefit of and be binding on you and Master Licensee and your and
Master Licensees respective successors assigns, heirs, executors, administrators and personal
representatives
If you request, and Master Licensee approves any amendment to this Agreement after the date of this
Agreement you agree to reimburse Master Licensee (and Franchisor if applicable) for their reasonable,
costs (including attorneys fees) incurred in connection with such amendment
22 14 Acknowledgments
YOU ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTAND THIS AGREEMENT, AND THAT
MASTER LICENSEE HAS GIVEN YOU AMPLE TIME AND OPPORTUNITY, AND HAS ENCOURAGED
YOU, TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL
BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT
5% of Gross
$0 00 $14 999 99 $1 800 00
Revenue
$1 800
$15 000 00 $24 999 99 $500
+ 6 25% of Gross Revenue in excess of $15 000
$2,425
$25,000 00 $34 999 99 $500
+ 4 75% of Gross Revenue in excess of $25,000
$2,900
$35,000 00 $44,999 99 $500
+ 4 25% of Gross Revenue in excess of $35 000
$3,325
$45 000 00 $59,999 99 $500
+4% of Gross Revenue in excess of $45 000
$3 925
$60 000 00 $74 999 99 $500
+ 3 75% of Gross Revenue in excess of $60,000
$4 487
$75 000 00 $75,000 00-t-0$83 333 33 $500
+ 3 5% of Gross Revenue in excess of $75 000
- <tj\ 77Q
t t Zf
cqnn
Address
Routing Number
Please debit payments from my (check one)
(valid routing #s must start with 0.1.2. or 3)
n Cfieckino Account (attach voided check when retuminat
Account Number
n Savings Account fcontact your financial institution for Routino#)
Freouencv of payment
Deduction Amount
ROYALTY If you have signed a franchise agreement with percentage based Royalty Fee, you will be deducted the amount due
based on gross revenues reported in the ActionMEMBERS KPI system
MARKETING If vou have signed a franchise agreement with percentage based Marketing and Advertising Fee, you will be
deducted the amount due based on gross revenues reported in the ActionMEMBERS KPI system
AGREEMENT
I authonze [Name of Master Licensee! to process debit entnes to my account I understand that this authontv will remain in effect
until I provide reasonable notification to terminate authorization
DATE
EXHIBIT B-2
To
BUSINESS COACH
FRANCHISE DISCLOSURE DOCUMENT
THE PRACTICE(Premium)
BUSINESS COACH FRANCHISE AGREEMENT
(O n
business coaching
THE PRACTICE
Premium
BUSINESS COACH FRANCHISE AGREEMENT
Attachment 1 Fees and Specifications
"Direct Marketing" means communication to prospective clients within the DDMA by direct mail
telemarketing email marketing door-to-door marketing, broadcast faxing voicemail marketing,
couponing or direct selling The Franchisor has the sole right to determine, whether or not any other
activity or marketing method not defined herein is considered as Direct Marketing and its decision shall be
binding on all parties
"Designated Direct Marketing Area" or "DDMA" means the areas specified in Attachment 3 for the
purpose of Direct Marketing to prospective clients and Clients Master Licensee identifies the DDMA as a
geographical area defined by zip codes postal codes and/or counties
"Employee Business Coach" or "EBC" means the specific individual (other than a Nominated
Business Coach) who is authorized by You and Master Licensee to provide Coaching Services to Clients
on behalf of the Business pursuant to Section 115
"Gross Revenues" means the total receipts derived from services performed and products sold by or in
connection with the Business Any property or services received from Clients in exchange for Coaching
Services will be included in Gross Revenues at their fair market value at the time received Gross
Revenues also include any proceeds you may receive from business interruption insurance Gross
Revenues do not include sales taxes or credits such as the sale price of any products returned by Clients
or other taxes that you collect from Clients and pay directly to the appropnate govemmental authorities
"Manuals" means the operations manuals policy statements, directives, and other written instructions
issued by Franchisor with respect to the System, including, without limitation, information and materials
posted in the Intranet areas of the ActionCOACH website Part or all of the Manuals may be issued in
electronic form Franchisor may amend the Manuals from time to time
"Marks" means the marks listed in Attachment 1 and such other registered and unregistered trade
names trademarks service marks logos commercial symbols, Intemet domain names web site
Identifiers designs color schemes and trade dress as Franchisor may designate from time to time for
use with the System
"Nominated Business Coach" or "NBC" means You or the person appointed by You to act as such
(subject to conditions herein) to provide Coaching Services to Clients on behalf of the Business and has
authority to bind you in any dealings with Mater Licensee or the Franchisor Only one (1) person may be
the Nominated Business Coach at any given time Ordinarily you must personally serve as the
Nominated Business Coach throughout the Term You may appoint another individual to serve as
Nominated Business Coach only if (i) Master Licensee approves you in writing to appoint a Nominated
Business Coach and (ii) the proposed Nominated Business Coach (a) has been approved by Master
Licensee and trained by Franchisor (b) has signed a Nominated Business Coach Agreement with you
and the Master Licensee and (c) has direct responsibility for all operations of the Business and the
authonty to bind you in any dealings with Master Licensee or Franchisor
"System" means the business methods specifications procedures and accumulated trial and error
developed and to be developed by Licensor and/or Franchisor for the operation and management of an
ActionCOACH business coaching and mentoring business
46 You must pay for the cost of any of Master Licensee s administrative fees connected with the
failure of your direct debit facility
47 You have no right of set off as against Master Licensee or Franchisor You must not for any
reason withhold payment of any amount due to Master Licensee or Franchisor This applies even
if You allege that Master Licensee has not performed or is not performing an obligation imposed
upon It under this Agreement or a related agreement Master Licensee may accept any part
payment without prejudice to its right to recover the balance due or pursue any other remedy
Master Licensee may set off against any payment due to You by Master Licensee any of your
unpaid debts to Master Licensee
51 You will advertise and promote the Business at your own expense and in accordance with the
Manuals However you may not publish or distribute any advertising or promotional material
unless It has been approved in writing by Master Licensee which approval will not be
unreasonably withheld or unduly delayed If Master Licensee objects to any advertising or
promotional material that you are using you must immediately stop using it Advertising and
promotional materials fumished by Master Licensee may be used only in the manner and dunng
the period specified by Master Licensee Master Licensee has the right to charge reasonable
fees for any materials that Master Licensee provides
52 You acknowledge that, unless otherwise specified by Franchisor in writing, forty percent (40%) of
the Marketing and Advertising Fees will be sent by Master Licensee to Franchisor for its use in
local regional or national marketing and advertising Franchisor will direct all marketing
programs supported by Marketing and Advertising Fees with final discretion over creative
concepts materials and media used in the programs and their placement Franchisor may use
the fees for any activities that they believe would benefit ActionCOACH businesses generally
including but not limited to national and international advertising promotion creative
development production of advertising and promotion marketing research and development
public relations Internet and reasonable administrative expenses related to these efforts
Franchisor and Master Licensee may use the Marketing and Advertising Fees to pay the costs of
a) developing and conducting advertising and promotional campaigns as determined by
Franchisor or Master Licensee in its sole discretion including customer database development
and management b) developing and funding advertisements c) sourcing the production of
marketing materials and other sales matenals d) conducting research including research in
relation to products and customers, e) developing public relations customer and supply relations
f) engaging advertising agencies and marketing consultants g) coordinating the activities set out
above and administering the Marketing and Advertising Fees, including reasonable overhead and
administrative costs, the cost of materials and employees salaries and printing costs and h)
payment of accountancy legal and other fees in respect of audits of the records of the Marketing
Fees Franchisor and Master Licensee may determine in its discretion how the Marketing Fees is
spent
C Provide you with guidance on pre-opening and opening activities for the
Business, pnor to and including its first two (2) weeks of operation This will
include on-line access to advertising and promotional matenal and may include
guidance on advertising and promotional programs
D Each week for the first ninety (90) days after you complete the ActionCOACH
training program provide access via conference or personal calls to discuss any
operational challenges and assist you in examining your results from your weekly
reports Thereafter Master Licensee vwll conduct or arrange for penodic
conference calls (as determined by Master Licensee in its absolute discretion)
with you to discuss operational challenges and conduct ongoing training
E Grant approval of your office location and assist you in determining the location
of your office The selection of your office location will be your responsibility
F Arrange for you or your Nominated Business Coach (if applicable) to attend
Franchisors annual conferences There will be a conference fee payable to
attend the Regional Conferences You must pay all your own travel and living
expenses for you and your attendee(s) Master Licensee may also hold such
conferences within the Designated Temtory Unless waived by Franchisor in
writing attendance by you at Franchisor s Regional North Amencan Conferences
IS mandatory
online WIKI format version of the Manuals and any amendments thereto
promulgated by Franchisor via online access The Manuals for your Nominated
Business Coach will be supplied to you via on-line access once Master Licensee
receives an executed copy of the Nominated Business Coach Agreement and
the Training Fee has been paid
H Inform you of any changes and improvements to the System that may be
developed by Franchisor or Licensor and authorized for use by ActionCOACH
business coaches in the U 8 A
72 Master Licensee will offer you such additional guidance and assistance as Master Licensee
deems necessary or advisable Failure of Master Licensee to provide any particular service
either initial or continuing will not excuse you from paying any of the fees including but not limited
to, the Franchise Fee Royalty Fees or Marketing and Advertising Fees
81 Your franchise is non-exclusive There will be other Business Coaches providing Coaching
Services in the Designated Temtory In addition Franchisor and Licensor may sell products in
the Designated Temtory via Across-Area Marketing Programs Master Licensee will
communicate to you any policies that Franchisor or Licensor issues to coordinate Across-Area
Marketing Programs
82 You may not advertise in any media whose pnmary circulation or footprint is outside of the
Designated Temtory nor may you engage in Direct Marketing to clients or prospects outside of
the Designated Temtory or within a DDMA Franchisor and Master Licensee may establish terms
SECTION 10 - MANUALS
10 1 You acknowledge that the Manuals are furnished to you on loan and that they remain the sole
property of Licensor at all times You must not make any copies (paper, electronic or otherwise)
of the Manuals
be-a-
10 2 Licensor or Franchisor may revise the Manuals at any time and from time to time Master
Licensee will communicate any such changes to you Such revisions may include changes with
respect to
B Operating procedures
E Dress codes
H Insurance requirements
10 3 You agree to operate the Business in accordance with the Manuals as modified from time to
time Failure to comply with the standards set forth in the Manuals will constitute a material
breach of this Agreement
111 You agree to use your best efforts to increase the reputation of and demand for Coaching
Services in the Designated Territory
11 2 You agree to strictly comply with all present and future standards specifications and procedures
prescnbed by Licensor or Franchisor and communicated by Master Licensee or set out in the
Manuals including but not limited to the following requirements
A You your NBC and your EBCs must complete the relevant ActionCOACH
training program at a location designated by Franchisor You must complete
training before the Business opens Your NBC and EBCs are not permitted to
provide Coaching Services until after they have completed Franchisor s training
Attendance by You at Franchisor s Regional Conferences is mandatory You are
responsible for all salary travel expenses, and other expenses of persons
attending programs seminars and conferences offered by Franchisor or Master
Licensee
D change, discontinue, or substitute for any of the Marks at your own expense if
Master Licensee notifies you that Licensor or Franchisor has modified the Marks
to be used in the U S A
15 3 You acknowledge that you will have access to the Manuals and other valuable trade secrets
know how methods information recruiting techniques, accounting procedures control
procedures and marketing techniques relating to the System (collectively the "Confidential
Information") The Confidential Information was developed at significant cost is owned by
Licensor and is necessary to the operation of the Business You further acknowledge that such
Confidential Information was unknown to you prior to negotiation for and execution of this
Agreement You will take all steps necessary at your own expense to protect such Confidential
Information and will not divulge it either during the Term of this Agreement or thereafter Your
employees may have access to the Confidential Information only to the extent necessary to
perform particular tasks, and only after first signing a confidentiality agreement in a form
acceptable to Franchisor You will be responsible for all unauthonzed disclosures of Confidential
Information by any person to whom you give access to the Confidential Information Upon
expiration or termination of this Agreement or any transfer approved under Section 20, you will
return or destroy all Confidential Information
15 4 You must immediately inform Master Licensee of any suspected, known or threatened
infringement of or challenge to the Marks or unauthorized disclosure or use of Confidential
Information You must assist and cooperate with Master Licensee Franchisor and Licensor in
taking such action if any as they deem appropriate to protect the Confidential Information and
the Marks
15 5 You agree that all data you collect from Clients and prospective clients in connection with the
Business is deemed to be jointly owned by Master Licensee and Franchisor You are licensed to
use such data while this Agreement is in effect Upon expiration or termination of this Agreement
or an approved transfer of the Business to a new owner you must comply with Section 18 and
not use any Client or prospective client data for any purpose contrary to Section 16 2
16 1 During the Term of this Agreement you may not either directly or indirectly through any other
person or entity, participate in be employed by act as a eoaeh-Business Coach (or anv similar
capacitvl to. provide financial assistance to or acquire any interest in any business that offers
business coaching and mentoring services in competition with or similar to anv of the Coachino
Services ("Competing Business") to clients in the U S A
16 2 The restriction in Section 16 1 will also apply for a continuous two (2) year period after the
expiration or termination of this Agreement or after a transfer approved under Section 20 but only
as to clients in the Master Licensee s Territory and within one hundred (100) miles of the Master
Licensees Territory In addition for two (2) years after the expiration termination, or approved
transfer of this Agreement, you will not solicit, for the benefit of any Competing Business any
person who was a Client of the Business during the two (2) years immediately before expiration,
termination or transfer
16 3 Dunng the term of this Agreement and for a continuous two (2) year penod after its expiration or
termination or after a transfer approved under Section 20 you may not employ or otherwise
interfere with the employment relationship of any person who is employed by Licensor
Franchisor or Master Licensee
16 5 This Section and Section 15 apply to your NBC your EBCs, employees and individuals holding
an ownership interest in the Business and any persons or legal entities controlled by the
foregoing individuals ^ At Master Licensee s request you must fumish Master Licensee with
executed agreements from such individuals, in forms acceptable to Master Licensee in which
they agree to be bound by Sections 15 and 16
16 5 This Section and Section 15 apply to your NBCs employees and individuals holding an
ownership interest in the Business and any persons or legal entities controlled by the foregoing
individuals At Master Licensee's request you must fumish Master Licensee with executed
agreements from such individuals, in forms acceptable to Master Licensee, in which they agree to
be bound by Sections 15 and 16
16 6 You agree that damages caused to Master Licensee Franchisor and Licensor for failure to
comply with Section 15 or Section 16 are irreparable You agree that Master Licensee,
Franchisor and Licensor mav. notwithstanding the provisions of Section 22 9 hereof, seek
injunctive relief without notice to you in addition to any other relief that may be available to them
for breach of Section 15 or Section 16
16 8 If a court or arbitrator determines that any restnction or provision in this Section 16 strictly
applied would be invalid or unenforceable then the restnction or provision will be deemed
modified to the extent necessary (but only to that extent) to make it valid and enforceable If a
dispute regarding enforceability of Section 16 2 or 16 3 is resolved in favor of Master Licensee
and Franchisor the two (2) year period (or the period deemed to be reasonable by the court or
arbitrator) will run from the date of the order permitting its enforcement
17 1 Termination by You
If you are in compliance with this Agreement and Master Licensee matenally breaches this Agreement
and fails to cure the breach within sixty (60) days after you deliver a written notice of the breach to Master
Licensee, you may terminate this Agreement effective ten (10 days after you deliver a notice of
termination to Master Licensee You must comply with the provisions of Section 18
22 10 Improvements
If Franchisee develops any improvement in the System Franchisee will promptly notify Master Licensee
and will provide all necessary information to Master Licensee All such changes and improvements will
be the sole property of Franchisor
22 11 Notices
All notices pursuant to this Agreement must be in writing and be delivered in person or mailed by certified
or other receipted mail or by Federal Express or other receipted commercial delivery service or by
facsimile or electronic mail The addresses for notice will be those set forth in Attachment 1 You or
Master Licensee with notice to the other party may change the address to which notices will be sent
22 12 Successors
This Agreement will mure to the benefit of and be binding on you and Master Licensee and your and
Master Licensees respective successors assigns heirs executors administrators and personal
representatives
If you request and Master Licensee approves any amendment to this Agreement after the date of this
Agreement, you agree to reimburse Master Licensee (and Franchisor if applicable) for their reasonable
costs (including attorneys fees) incurred in connection with such amendment
22 14 Acknowledgments
YOU ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTAND THIS AGREEMENT, AND THAT
MASTER LICENSEE HAS GIVEN YOU AMPLE TIME AND OPPORTUNITY, AND HAS ENCOURAGED
YOU, TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL
BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT
THE PARTIES have caused this Agreement to be duly executed as evidenced by their signatures
appeanng below
- cAon
Address
Routing Number
Please debit payments from my (cfieck onef
(valid routing #s must start with 0.1.2. or 3)
n Cfiecking Account (attacfi voided check when retuminol
Account Number
n Savings Account fcontact your financial institution for Routing#!
Frequency of payment
Deduction Amount
ROYALTY If you have signed a francfiise agreement with percentage based Royalty Fee, you will be deducted tfie amount due
based on gross revenues reported in the ActlonMEMBERS KPI system
MARKETING If you fiave signed a franchise agreement with percentage based Marketing and Advertising Fee, vou will be
deducted the amount due based on gross revenues reported in the ActionMEMBERS KPI system
AGREEMENT
I authorize fName of Master Licenseel to process debit entnes to my account I understand that this aulhonty will remain in effect
until I provide reasonable notification to terminate authorization
EXHIBIT C
To
BUSINESS COACH
In recogniton of the Maryland Franchise Registration and Disclosure Law, Maryland Stat
§§ 14-201 to 14-233, and the Rules and Regulations promulgated thereunder, the parties agree
to modify the [check appropnate box] • The FIRM - Business Coach Agreement, • The
Practice [type] - Business Coach Franchise Agreement entered into as of [date] ("Franchise
Agreement") as follows
In Maryland, the Franchise Fee is not due until Master Licensee and ACNA have
has-fulfilled its pre-opening obligations to you
In Maryland, the Training Fees are not due until Master Licensee and ACNA have
has-fulfilled its pre-opening obligations to you
In Maryland, the Technology Fee is not due until Master Licensee and ACNA have
has-fulfilled its pre-opening obligations to you
We do not collect any portion of the initial fees (including the franchise, training and
technology fees) until we and ACNA have fulfilled all our pre-openinq obligations to
vou
Notwithstanding anything to the contrary in this Franchise Agreement you are not
required to waive any of your nghts under the Maryland Franchise Registration and
Disclosure Law with regard to Master Licensee s pnor representations
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law
shall govern any claim ansing under that law
Notwithstanding the foregoing you may bring any claims under the Maryland Franchise
Registration and Disclosure Law in a Maryland court
11© This Addendum shall have effect only if the Franchise Agreement and/or the relationship
between Master Licensee and you satisfy all of the junsdictional requirements of the
Maryland Franchise Registration and Disclosure Law without considenng this
Addendum Except as expressly modified by this Addendum the Franchise Agreement
remains unmodified and in full force and effect
By By
Title Title
EXHIBIT E
To
BUSINESS COACH
This Agreement is entered into on [Date] between [Name of Business CoachFranchiseel (referred
to as we " us and "our") located at [Business CoachFranchisee's Address] and [Name of Business
Coach / Emoioveel (referred to as you and your") located at [Business Coach / Employees
Address] You are signing this Agreement in consideration of and as a condition to your association
with us and the compensation dividends or other payments and benefits you will receive from us
BACKGROUND
We are an ActionCOACH franchisod Business Coach franchisee of [Name of Master Licensee!
("Master Licensee ) under a Business Coach Franchise Agreement dated [Date! We have a
license to use the Marks the System and the Confidential Information owned by ActionCOACH
IPCo Ltd and licensed to ActionCOACH North America LLC (collectively "Licensor) Master
Licensee recognizes that in order to effectively operate our business we must give our
business coaches and emplovees access to certain confidential information and trade secrets owned
by Licensor Disclosure of this confidential information and trade secrets to unauthorized
persons or its use for any purpose other than the operation of our business would harm us
Master Licensee Licensor other franchise owners and ActionCOACH North America LLC
("Franchisor) Accordingly Master Licensee requires us to have you sign this Agreement
AGREEMENT
1 As used in this Agreement Confidential Information" means all manuals trade secrets
know how methods training materials information recruiting techniques accounting
procedures control procedures and marketing techniques relating to the
ActionCOACH business coaching and mentoring business and system In addition
Confidential Information includes all marketing plans advertising plans business plans
financial information client information, employee information, and other proprietary
information of Licensor Franchisor Master Licensee or us (collectively the "Interested
Parties") that you obtain during your association with us
2 You agree not to disclose any Confidential Information to anyone outside of our organization
(other than the Interested Parties) and not to use any Confidential Information for any
purpose except to carry out your duties as our employee You also agree not to claim any
ownership in or nghts to Confidential Information and not to challenge or contest Licensors
ownership of it These obligations apply both dunng and after your association with us
3 If your association with us ends for any reason you must return to us all records described in
Paragraph 1, all other Confidential Information and any authorized or unauthorized copies of
Confidential Information that you may have in your possession or control You may not
retain any Confidential Information after your association with us ends
4 You may not during your association with us without our prior written consent
5 Paragraph 4 will continue to apply for (ai two (2) years if vou are a Business Coach, and (bi
one (1) vear if vou are an Emolovee.-after your association with us ends regardless of the
reason that your association with us ends However Paragraph 4(a) will only continue to
apply to businesses operating in the geographic area where you performed work for us
In addition for two (2) years after your association with us ends you may not solicit for
Cal-E^SI Projec: (2180-11;
Pec.^'\ t Ducum^n s
h^-yv
/
X /
/
Document Separator Sheet
D
Patch II
ActionCOACH business coaching
EXHIBIT J
To
BUSINESS COACH
ALABAMA
205-881 8130
Richard Papworth
y A\/r'ni
/ tV I IU
Qilhfift IA7
\1_ vUlbO 1 Phoenix AZ 85027
602-524-5572
_lAQ.V-£ti
' ™flVVTt7fX Phil
I I •• I I finhfp>r
Itwl Eric King
16020 N 77th St
CALIFORNIA
2958-Caft«€HWay 14 Edgewood
Carlsbad CA 92008 Goto de Caza CA
(051) 236 5365
KnthiP
Paul Wildrick
440 Stem Way 4160 Oregon St
• Inff Nntt
VxJ 11 I 'IUII
POI QPAPO
Joff Wilson
390 Union Blvd—Ste 310San •**' Floor
pi optnA
r^sXyrxreyT^
Roberto Suaroz
GEORGIA
Ed Renna
2312 S Taglish Way
ItUNOIS
PJ Weiland
1363 Shermer Road #306
INDIANA
• If 11N/ ^
IOWA
Theresa Bombach
1511 Amana Rd—NW Avo SE <1117 Walnut Streot
Amana lA 52203 W Des Moines lA 50265
515 222 0103
KENTUCK¥
Tim Jones
LOUISIANA
MAINE
UIM I L-U£UQI
6098-9Z9-g0l'
jeBjeg tt»f
Zim-\/VV g9Z
Igtrprv^*/ C ril/g-
Nathan Smith Chris Wofsman
5781 S Fort Apache Rd
Las Vegas NV 89139 t=as-^
702-795-3188
f77S>
V^Cil I Ul
N2-08037 Iwci
n<A/rf^nppwtilf^
vv 1I luo V inw fsl
I I w I \j
Vincont Saponar
20^
MFW MFYirn
TiB»wV~nrTeZyXTia'^y
I pQ AoQfuljirioh
^ WW • »i II J IV IUI I wl I Fllip Mnr«^hq|l
1^111^ IVIOI 91ICI11
"*^51 Suito2Hi
212--188-2230
Michael MoConchie
21-1 Burlington Plaoo 6O076 Hathaway Lano
Gary NO 27514
Qiq QF;Q-7Rifi
C I OCWO » w WW Q1Q-5PQ Ofilfi
W I W w W W W I '
Wayne Rutherford
1 Stur-bridge Lane 1050 Revolution Mill Br Studio
Groednsboro NC 27'105
336-899 6588
Bill Gillilland
Binkley Chiapel Court
Montreal NC 28757 Wako Forest NC 2758?
828 165 9909
QiQ
« ^71
II I t. f c. ^ 2a&-34-Q-QZ?3
QHIQ
v/i IfV
Robert Viney
Columbus OH 13235
611 582 8316
Peter McDowell
Columbus OH ^3235
837-591-2129
Martin Holland
Norman OK 73069
OREGON
John Larrgel
^7044
Paul Currie
Lancastor PA 17601
717-291-9191
Doug Savidgo
I ooff/-\r DA
k.ui ' I / » • • 'w V I Lewisburg PA 17837
717 291 0194- 717-291 9101 570-52'1 35/t7
2-T34-Hawthorne Rd
18938
72/1-310-3296
SOUTH CAROUNA
8/13-350-0326
TFXAS
3605 Neiman-Road
Piano TX 75025
972-712-6315 972-3/17-2818
Son Antonio TX
240-998-5795 210-/110-1233 210-858-5136
Tim Roberts
VIRGINIA
w 11 111 f ^
Sheri
1^9 Curry Court
Clear Brook VA 2262^
54-7-7657590
Johnnie Barr
6215 Sudley Church Ct Staunton VA 24401 South
Fairfax VA 22039
571 33^ 0695
Mf^nipr
Winchester VA 22603
540-97'1-0167
Jim Munro
2444€-SE-42™-R)aee 5813 En St AI
WW >0 ^vlwl 5813 F.T^.t l'*' A^foniin
iGsaquah WA 98029 Spokane Valley WA 99212
^25 829 2333 509 455 5053
Kevin Weir
Avenue #102 5813 East 1" Avonuo #102
Chris Carman
506 Prairieview Ct
Do Forest Wl 53532 3218 Elm Grove WI-53422
608 106 2292 262-365-9414
Susan Thompson
13500 Watertown Plank Rd
531?'^ Madison
(262)790-1213
Chris Penasa
6821 Obikoba Circle
262 643-^708
ALABAMA
CALIFORNIA
COLORADO
CONNECTICUT
GEORGIA
IDAHO
ILLINOIS
1200 St • William Drive 1363 Shermer Road #306
Lake Forest, IL 60045 Northbrook, IL 60062
847 321-9773 847-739-3079
INDIANA
Mark McNultv
641 Washington, Suite 14
Mooresviile. IN 46158
812-372 7377
IOWA
Steve Wilson
195 N MentzerRoad
Robins. lA 52328
KENTUCKY
LOUISIANA
MAINE
Jim Lvon
101 Applecrest Drive
Yarmouth, ME 4096
207-847-3164
MARYLAND
Jeff Miller
11 Vallingbv Circle
Rockville. MD 20850
MICHIGAN
Fadi Baradihi
2632 S Rochester Rd #70763
Rochester Hills, Ml 48307
248 979 8235
MINNESOTA
Tracy Ford
6575 141st Ave NW Suite 100
Ramsey, MN 55303
763-444-9812
NEBRASKA
Jim Baroer
16646 Howard Circle
Omaha. NE 68118
402-676-8809
NEVADA
NEW JERSEY
Ed Kozemchak
42 Locust Way
Spring Lake. NJ
732-946-2836
NEW MEXICO
Mark Tobiassen
2912 River Willow TrI NW
Albuouergue. NM 87120
505 263-5657
NEW YORK
NORTH CAROLINA
OHIO
David Beam
22 Jason Lane
Wheelersburo. OH 45694
614 547-0300
OKLAHOMA
OREGON
Terry Elton
14440 SWISS"'Ave
Tioard. OR 97224
971-925-7001
PENNSYLVANIA
SOUTH CAROLINA
Foster McCarl
41 Woods Bay Rd
Bluffton. SC 29910
843-350-0320
TENNESSEE
Curt Henry
1113 Tusculum Blvd PMB 254
Greenville, TN 37745
423-639-5632
TEXAS
UTAH
Tim Roberts
2791 East 3725 North
Lavton. UT 84040
801-309-9607
VIRGINIA
WASHINGTON
Kevin Weir
5813 East 4-Avenue #102
Spokane Vallev. WA 99212
509-455-5053
WEST VIRGINIA
Earl Kerrv
89 Hadrian Ct
Martinsburq. WV 25403
WISCONSIN
EXHIBIT K
To
BUSINESS COACH
TRANSFERS
(from Franchisees to New Owners other than a master licensee or ACNAt
Kelli Hoskins
27173 Lakewood Drive NW
Isanti. MN 55040
763-444-9812
Nene
None
Arizona
Ron Wiltbank
4460 East Tremaine Avenue
Gilbert. AZ 85234
480-252-4981
California
Kathie Ittel
1220 N Dutton Avenue. #109
Santa Rosa. OA
(707) 937-3168
Colorado
Jeff Wilson
90 Union Blvd . Suite 310
Lakewood. CO 80228
f303f 759-1204
Florida
Roberto Suarez
1200 Anastasia Ave. Ste 100
Coral Gables. FL 33134
(305) 295-9264
Georgia
Idaho
Drew Williams
2341 N Yonkers Lane
Boise, ID 83704
(208) 631-5742
Indiana
Rooer Enqelau
6521 E Rollino Valley Court
Columbus, IN 47201
(3171 908-5809
Iowa
Deb Oliyer
109 Liberty St PO Box 534
Dvsart, lA 52224
Kentucky
Jerry Brown
1860 Campus Place
Louisyille, KY 40229
502-479-3692
Louisiana
Brian Baudean
3631 Rue Colette
New Orleans, LA 70131
504- 392-5480
Massachusetts
Scott Hamilton
7048 Old Canton Road. Suite 2010
Ridoeland. MS 39157
Nevada
Chris Weisman
5781 8 Fort Apache Rd
Las Vegas. NV 89148
702-795-3188
New Jersev
New York
North Carolina
Dan Lawson
Binklev Chapel Court
Wake Forest. NC 27587
919-453-0729
Ohio
Oregon
David Chin
14939 NW Dominion Dr
Portland. OR 97229
503-830-0814
Pennsylvania
Tennessee
Steve Pitcairn
43 Darlinaton Cove
Jackson. TN 38305
Texas
Virginia
Washington
Chad Rudolph
24448 SE 42- Place
Issacuah. WA 98029
425-829-2333
California
2860 Hay Loft Way 3737 Weslin Avenue
Morgon Hills CA
(408) 782-65^8
VWIVl MM**
Jorry Chesser
(720)081 0026
Phil Barton
Louisville CO 80027
(303 664 1050
Connecticut
(860) 239-0045
Florida
(561) 988-9361
Louisiana
AI\Mn lii*^tp|ptn
Massachusetts
Tr^r>» Oi^kkine»
12 West Boylston St
508 579-5088
Michigan
wuwVpTII '
248 270-5723
AAiimA&AtA
iviii IIIV9 via
•«*
763 ^-l-l 9812
ftflijCJCJjfcfclttlM
Phillip Hollen
512 Wynridge Court
Madioon MS 50110
Montana
KltiA/azljl
WCIUCI
Henderson NV8901^
Now Jersey
Mrw Ynrk
I VI fx
North Carolina
Patrick Overby
Greensboro NC27408
910-215-578'1
Tennessee
Steve Pitcairn
^3 Darlington Cove
Tf>v -ae:
Michael Rager
Doug Dredge
1102 Dover St
Kaysvillo, UT 81037
\/|r|nniTl
If II mi iTci
Washington
Greg Anderson
Wisconsin
EXHIBIT M
To
BUSINESS COACH
TRAINERS
The following individuals are the trainers who rotate to conduct the subjects in the Franchisee Training and
I Employee Business Coach
ActionCOACH
Top 100 Business
Name Franchisee ActionCOACH Awards
Coach Ranking
since
EXHIBIT N
To
BUSINESS COACH
2 Coaching
3 Firm
31 People
32 Roles and Responsibilities
33 Recruiting
34 Training
35 90 Day Coach Foundation Program
36 Conferences
37 Operations
3^ Office
39 Technology
31 Communication
311 Financials
312 Policies
313 Legal
314 Marketing
3 15 Stock List
3 16 Firm Marketing
317 Standards
3 18 Brand Management
3 19 Planning and Reporting
32 Goals
3 21 Planning
3 22 Reporting
3 23 Standard Forms
4 MasterCOACH
41 Coactiing Agreements
42 Monthly Reporting
43 Event Approval
44 Marketing and Promoting
45 Fees
46 Management and Administration
47 Minimum Standards
48 Removal
5 Sales
61 Welcome Book
62 Introduction
63 Steps Involved
64 Sales Letter
65 Program Outline
66 5 Wavs for Non-Profits
67 Approved PR Templates
68 Fact Sheet
69 Q&A with Brad Sugars
61 Structure of Regiona Boards
6 11 Agreement Form
6 12 Coaching for a Cause Official Presentation at Global
6 13 Recommended Reading
6 14 Coaches Share their Non-Profit Exoenence
Instructions for Registering and Promotibg a Cause in the
615 website
6 16 Coaching for a Cause Website Training Webinar
6 17 Coaching for a Cause Interview with Brad Sugars
6 18 Using a Pro Bono Coaching to Grow vour Business
6 19 Coaching for a Cause Webinars
I 7 Marketing
8 Marketing Media
8_1 5 Ways
L2 6 Steps
83 ActionCLUB
84 Business Excellence Forum
85 BusinessRICH
86 Coach Level Certificates
87 Continuation Education Credits - NASBA
88 French Materials
^ GrowthCLUB
81 Leverage Game Nights
811 PlanningCLUB
812 ProfitCLUB
813 SeminarCLUB
8 14 Sporting Fivers
8 15 Take the Field
816 Testimonials
8 17 Tickets / Gift Certificates / Vouchers
9 ActionMEDIA
10 II
101 Email
102 FAQs
103 ActionHELP
10 4 Infrastructure
10 5 Passwords
106 Web Sites
107 CRM
U ActionMEMBERS
11 1 About ActionMEMBERS
11 2 ActionHELP
11 3 Matn Arena
11 4 Home Run
11 5 Notice Board
11 6 Game Plan
11 7 Plavbook
11 8 Scouting
11 9 Scorecard
11 1 Locker Room
11 11 Administration
12 ActionCOACH CRM
13 ExecutiveCOACH
141 Accounting
14 2 Business
14 3 Marketing
14 4 Coaching
14 5 Compliance
146 Legal
147 Sales
14 8 Training
Manual I • Initial Trnming—Getting Into Your Action Business
Contents- Page Numbei-
2 0 — 0\ cmcw
Stx Week^dc'ftow Plan -%
The E Myth Questionnaue -6
The Competitive Edge Questionnaii e
The Instant Cashflow Questionnaire -6
The Cash, Customers And Ads That Sell Questionnaire
The Complete Guide To Coaching At Work Questionnaire
The Great Sales Book Questionnaire
Setting Up yom Action Busuiess
Your Initial Training Six Weekvlcftow Plan
93 Additional Learning 33
9-4 Review Action Internet Site 33
9-3 Intioduoe Yourself To Other Coaches 33
9-3 Aligmnent Class 33
8-9 Conclusion 93
Manual 3 Marketing Building Your Enquiry Funnel
Contents PaeeNumbei-
3-0 Telemarketing 40
3-1 Advertise Foi Your Tolomarketuig Company 49
3^ Inter\'iew Process 40
3-3 Setting Goals 30
34 Pnor to Commencement 30
33 Telemarketer 34
3-6 Follow Up for Coach
7-9 Networking 60
7-t Obtain Contacts 60
7-2 Send letter with a gift cheque 60
7-3 Qualifi' the prospect 60
7-4 Set an appointment 60
7-6 Send out kit, 60
7-6 Telephone prospect, and 6k
7^7 Attend sales appointment 6k
8^ Cold Calling 62
8-1 Identify Prospect 62
8-2 Send Letter 62
8-3 The cold call visit 62
8-4 The ongoing contact 63-
10
Manual 3 Continued Markcting Building Your Enquiry' Funnel
Contonta- Page Numbef
11
Manual 4 Converting Your Enquii-y
Contonts ^ Page Number
4-0 Sales S
12
Manual 5
Contents— Page Numbe^
A1 SJ •30
JO
A C. A 1
—1 lie rYiigiuiiCiu v^ue*itiumiuLi<g • • •• 4 i
\ 7 AQ
A Q AC\
'O J rv/' IxCpUl t
10 S1
440-—Document End Note 33
: Table -43
13
Contents - PaeeNuiTtbef
14
MnnunI 6 Continued
Contcnta PagoNumbef
PLEASE NOTE—ActionCOACH currently provides the Manuals in electronic fonnat thiough its
ActionMEMBERS system ActionCOACH is currently in the process of transitioning the Manuals to a
wild based system, where content will be stored m a relational database management system
15
ActionCOACH business coaching
EXHIBIT O
To
BUSINESS COACH
Hardware Requirements
Software Reouirements
Telecommunication Reouirements
Minimum of two office phone lines and one dedicated fax line*
o VoIP providers such as Vonage, which can accommodate these requirements are
acceptable
Broadband connectivity minimum of 768kb/s download speed and 384 kb/s upload speed is
recommended but not required as download speed is generally limited by geographical
restnctions
Plain paper fax machine (high paper capacity preferred)
o Altematively an online fax service such as eFax is acceptable In this case it would
not be necessary to obtain a dedicated fax line
{You Date, Sign, and Keep This Copy}
RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other
information m plain language Read this disclosure document and all agreements carefully
If we or ActionCOACH North America Inc ( AGNA ) offer you a franchise we or ACNA must provide this
disclosure document to you fourteen (14) calendar days before you sign a binding agreement with or
make a payment to us ACNA or an affiliate in connection with the proposed franchise sale
[Maryland New York and Rhode Island require that we give you this disclosure document at the
earlier of the first personal meeting or ten (10) business days before the execution of the franchise
or other agreement or the payment of any consideration that relates to the franchise relationship ]
[Michigan and Oregon require that we give you this disclosure document at least ten (10) business
days before the execution of any binding franchise or other agreement or the payment of any
consideration whichever occurs first ]
If we or AGNA do not deliver this disclosure document on time or if it contains a false or misleading
statement or a material omission a violation of federal law and state law may have occurred and
should be reported to the Federal Trade Commission Washington DC 20580 and to the
appropriate state agency listed in Exhibit I
The Master Licensee is ActionCOACH OneCo LLC Our agent for service of process is listed in
Exhibit I Our Franchisor is ActionCOACH North Amenca LLC at 5781 S Fort Apache Rd Las
Vegas NV 89148 tel no 888-483 2828 ACNA s agents for service of process if any are listed in
Exhibit I
Issuance date
If I received the Franchise Disclosure Document on CD-R or CD-ROM or by any other electronic
means then by printing this receipt for signature I acknowledge that I have the equipment
software and other means necessary to open and to review the Franchise Disclosure Document in its
entirety
Date Signed
Print Name
{You Date, Sign, and Give Us This Copy}
RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other
information in plain language Read this disclosure document and all agreements carefully
If we or ActionCOACH North America, Inc ( ACNA°) offer you a franchise we or ACNA must provide this
disclosure document to you fourteen (14) calendar days before you sign a binding agreement with or
make a payment to us ACNA or an affiliate in connection with the proposed franchise sale
[Maryland New York and Rhode Island require that we give you this disclosure document at the
earlier of the first personal meeting or ten (10) business days before the execution of the franchise
or other agreement or the payment of any consideration that relates to the franchise relationship ]
[Michigan and Oregon require that we give you this disclosure document at least ten (10) business
days before the execution of any binding franchise or other agreement or the payment of any
consideration whichever occurs first ]
If we or ACNA do not deliver this disclosure document on time or if it contains a false or misleading
statement or a material omission a violation of federal law and state law may have occurred and
should be reported to the Federal Trade Commission Washington DC 20580 and to the
appropriate state agency listed in Exhibit I
The Master Licensee is ActionCOACH OneCo LLC Our agent for service of process is listed in
Exhibit I Our Franchisor is ActionCOACH North America LLC at 5781 S Fort Apache Rd Las
Vegas NV, 89148 tel no 888-483-2828 ACNA s agents for service of process if any are listed in
Exhibit I
Nicholas Dove
Kane Millspaugh
Issuance date
If I received the Franchise Disclosure Document on CD-R or CD-ROM or by any other electronic
means then by printing this receipt for signature I acknowledge that I have the equipment
software and other means necessary to open and to review the Franchise Disclosure Document in its
entirety
Date Signed
Print Name