ActionCoach Transparency

Trying, very hard…, to keep ActionCoach honest…

ActionCoach Master Licensee Attrition Rate

with 13 comments

January 2011

Quoting  Jodie Shaw, a member of the ActionCoach senior management team, “ ActionCOACH Master Licensees function as the company’s leaders at a state level and are responsible for developing business in their respective territories. Their most important functions include recruiting coaches and providing support to them. They form the pillars of the company and are leaders in their own right. The success of our Master Licensees is largely responsible for making ActionCOACH the leading business coaching firm in the world.”

Given this key role it is surprising how little information has appeared on the web about the Master Licensee attrition rate.  So, pursuing the cause of transparency and  starting with the U.S., here we go!

Year 2005-06

Robert & Eugenia Cerbone: Washington & Oregon

Rich Giannini: Nevada

Year 2006 – 07

Brad Glance: Florida Central & SW

Deborah & Michael Kohler: Kansas & Missouri

Tom & Rachel Butler: Kentucky

Marc Tannenbaum: Massachusetts (still a coach)

Ronald Kuhlenkamp: Michigan SE

William Evans: Michigan W

Jim Argue: New York Upstate

Year 2007 – 08

Wayne Rutherford: Florida Central & SE (still a coach)

Bill Eveleth: Florida N. (still a coach)

Vic Ciuffetelli: Texas S. (now CEO Asia Pacific)

Year 2008 – 09

Sam & Teresa Elkholy: California

Bill Ringle: Ohio N.

West & Carol Boettger: Montana, N.Dakota  Wyoming.

Michael Breitman: New York  Manhatten (still a coach)

Lee Munch: New York Suffolk & Staten Island  (still a coach)

Year 2009 – 10

Robert & Jeffrey Weisman : Arizona, New Jersey,

Rafael Maymi: Washington & Oregon

 

Year 2010 – 11

Lee Hufmann: Arkansas, Kentucky,Tennessee, West Virginia

 

Over the same period there have also been many departures in other parts of the world.

 

UK

Bruce Taylor: Scotland

Richard Clarke: South Central

Alistair Hunter & Ken Murphy: South East

Nick & Arcelia Dove: London (now M.L.’s in Florida)

Australia

Stan Jordan

Bruce Doyle (still a coach)

New Zealand

Martin Jimmick

Alan & Marianne Edelmann

Canada

Carol Coffey (Managing Director)

France

Donnchadh O Leary

Portugal

Paulo de Vilhena

 

As noted, some of these people stayed on with Action as business coaches but most left which all adds up to a very impressive level of turnover of key people in a very short period of time. Not exactly a ringing endorsement of the franchise…

It is also interesting to note that all those who quit as M.L.’s were replaced by people already in the system. In a few cases, coach franchisees have replaced departing M.L.’s but most of the time the departures have led to the concentration of an ever larger number of territories in the hands of the party faithful.

A big winner in this process was Kevin Alft. Back in 2006 he was just M.L. for New Mexico without a single coach on his team.  Thanks a lot to the departures of other M.L.’s,  he has since picked up  the rights to Utah, Idaho, Hawaii, Texas S., Arizona and part of California.

For services rendered, in August 2008 Kevin received the ActionCoach Global Master Licensee of the year award.

ActionCOACH founder and leader maximo Brad Sugars announced the award.

Our Master Licensee of the Year has the right attitude and is leading great initiatives to take his company to the top,” he said. “Kevin is an outstanding leader and asset for our company; it’s an honor to again give him this award.”  

Brad didn’t go into detail about any of this but looking at Kevin’s performance we can make some educated guesses.

He picked up Utah in the year 2006 – 07 and since then has recruited 6 coaches.

He picked up Idado in the year 2007 – 08 and since then recruited 8 coaches, mostly in the year 2007 -08.

He also picked up Texas S. in the year 2007 – 08 and since then recruited 13 coaches, mostly in the year 2008 – 09.

He picked up part of California in the year 2008 – 09 and since then recruited 12 coaches, mostly in the year 2008-09.

He also picked up Arizona in 2008 – 09 and since then has recruited 7 coaches, mostly over the last year.

Holy hole in the donut Batman, that’s a whopping total of 46 franchisees recruited over the last 4 years, an average of almost one a month!

As a side note, he has also been very successful at selling Firms and other such options so from a Brad Sugars perspective he is as near to the real deal as they come.

However, over the same period of about 4 years he has lost:

4 coaches in Utah

5 coaches in Idaho

16 coaches in Texas S.

5 coaches in California

and 2 in Arizona

a total of 32 and since recruitments are a leading indicator and coach exits a lagging indicator I think it is pretty reasonable  to imagine we will be seeing a lot more exits in the months ahead.

But who cares, that creates opportunities for even more sales which is good news for both Brad and Kevin. Expect to see him receive more awards in the years ahead…unless he decides to exit the franchise of course!

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13 Responses

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  1. Hahaha. Having worked with Brad, Jodie and Jason I can assure you that they’re in it for the money-now-thanks. Crooks all. Jodie in particular spends most of her time in ‘reputation management’, ie: barratry. Nice people, glad to be out of there.

    Buggerbum

    February 6, 2011 at 6:08 pm

    • Hi. “Reputation management” seems to imply that there is a reputation to manage but then I guess there is. Ever since her first posts on Soulcast back in 2007, Jodie has almost single handedly succeeding in creating a reputation for ham fisted communication that must put her on the awards list for the worst marketing manager of any company with the sort of web visibility that ActionCoach has.
      No doubt frustrated to see Jodie steal all the limelight, Jason has done pretty well of late too. Validating the terrible earnings data for the U.S. coaches was about as clever as it comes.

      Brad says he avoids getting involved on sites not under his direct control, not openly at least, but since he does a pretty good job of shooting himself in the foot on his own sites who needs more. For example the closed loop Q&A sessions he does on askbradsugars.com are seriously comical. All questions start exactly the same way “Brad – I ….” and are tailor made for Brad to copy paste answers out of Instant Cash Flow.

      No doubt about it, Brad, Jodie and Jason are quite a team…:-)

      actransparency

      February 7, 2011 at 9:32 pm

  2. So now we learn that also many M.L.’s quit ActionCoach, not so many as coaches but still a lot. What is a pity is we never know why they quit. We know coaches quit because they make no money but is this true also for the M.L.’s?
    I heard a story that the French M.L., Don O’Leary, quit because he had a row with Brad Sugars. Brad sent him a breach notice for not going to an M.L. meeting in the U.S. at the end of 2008. He was very upset about this because at this time his father was very sick and he didn’t want to travel outside France but Brad just didn’t care. Then, during summer 2009 we heard that Don, a very good guy, was no longer part of ActionCoach. Not a good story if true.

    I also heard that there was a lawsuit going on about this but am not sure because all these things are kept very hush-hush. Nobody says anything.

    We also heard recently that the M.L. from Portugal, Paulo de Vilhena, quit ActionCoach. He was Global Master Franchisee of the year in 2007 so maybe the warning here to Kevin Alft is not a joke. Spain doesn’t look too good also with nearly all the coaches quitting and maybe soon the M.L too.

    Why do they leave?

    April 25, 2011 at 11:02 am

  3. As a voice from Kevin Alft’s professional life before ActionCoach, I can simply say that if Brad Sugars is a person not to be trusted then birds of a feather tend to flock together. Kevin Alft ranks closely as the worst individual I’ve ever had the displeasure of working with and he needs no warning. If there’s any warning to be given out it’s to the people considering signing up as a coach with Alft or to those unlucky ones that already have … RUN!!!!

    Before joining ActionCoach Kevin Alft was a VP at Vermeer Mfg in Pella, IA. Alft was FIRED from that position because he was attempting to use his position at Vermeer to pressure a supplier into selling him ownership to a product line which Vermeer had exclusive distribution rights for. To highlight Alft’s brilliance in his efforts to create wealth, he communicated his demands to the supplier via email that if the product line was not sold to him (at a substantial discount), Alft would prevent the entire product line from entering the marketplace. Either way the supplier would be out of business but if he caved to Alft there would at least be a couple dollars in it for him. So you’re wondering what happen? To Alft’s surprise the supplier presented copies of all the emails to the owners of Vermeer and threatened to sue if these threats were carried out.

    On that day when Kevin Alft was terminated at Vermeer there were people around the company literally dancing on their desks because he was gone … Now that I think about it, maybe the warning should go out to Brad Sugars. Alft is the type of person that is most likely plotting a plan to displace Sugars from ActionCoach all together.

    Anonymous

    July 20, 2011 at 11:57 am

  4. I can confirm the lawsuit between the French M.L. Don O’Leary and ActionCoach and also that Don won the suit. ActionCoach paid for very expensive lawyers from Baker & McKenzie to fight the case but still they lose.
    Very good to hear.

    Anonymous

    September 26, 2011 at 3:10 pm

  5. Anonymous that worked with Alft.
    I have worked with Alft at ActionCOACH and would like to know more. Can you please email me at whoisalft@gmail.com please.
    Thank you

    Anonymous

    October 20, 2011 at 2:41 pm

  6. It’s so funny reading the quote from Jodie Shaw in the introduction above. Much about every time she opens her mouth or puts pen to paper it seems like she shoots herself in the foot. I just picked up on this little nugget where Jodie surpasses herself. BTW the info also seems to confirm the above post about the French M.L., Don O’Leary (French???)

    http://exfranceml.wordpress.com/2012/01/25/open-letter-to-jodie-shaw-actioncoach-ceo-usa-canada/

    Anonymous

    January 26, 2012 at 2:14 pm

    • Too funny. I hear Jodie was fired as CEO for her financial mismanagement of the company and psychotic tantrums… She couldn’t manage her way out if a wet paper bag. What happened to Don? What’s the latest ?

      Anonymous

      May 15, 2013 at 5:12 pm

      • this post might look out of line:-) Our cleaning company cleaned Jodie Shaw’s apartment in Las Vegas and she owes us $1,575.–for our services, she moved out from her place and doesn’t pick up the phone so we found her new employer and sent her an e-mail and she threatens us by her attorney now. What a woman! What a life and business coacher!

        Jana Haigwood

        October 23, 2013 at 3:02 pm

      • Yep, amazing as it seems, the Brad & Jodie show came to an end in 2013 and ActionCoach PR initiatives haven’t been the same since. Jeez, they’re not even claiming to have “more than a 1000 coaches in more than 26 countries” any more.
        As for Don O’Leary,I heard he had been awarded about 190k€ by the arbitration court contractually imposed by ActionCoach in France for dispute resolution but that afterwards ActionCoach refused to pay.
        Since the whole ActionCoach organization is very opaque with subsidiaries all over the place and no seizable assets, I can easily imagine that enforcing judgements that go against them must be a quite challenge.
        Anyone thinking about joining ActionCoach should be aware of this though, if you have a problem with this franchise, even when you win in court, the probability that you will ever get paid is very low.

        Anonymous

        August 28, 2015 at 5:48 am

  7. Over the years, I have kept an eye on this blog, one of the few, to have survived ActionCoach’s efforts to clean the internet of all references to the problems they have had with franchisees over the years.
    Going on a couple of posts I have just read here, it looks like the existance of such detailed information has had quite an impact. I have been tempted more than once to post my own story here but since it hasn’t yet played out fully, I will let it go for now.

    However, I can confirm that in spite of winning my arbitration procedure against ActionCoach Europe Sarl back in September 2011 and in spite of my on-going efforts to get ActionCoach Europe Sarl (which at some stage along the way morphed into Aardvark Ltd) to pay the interest and damages awarded to me, I have so far failed to recover a cent. In exchanges I had with Jason Cooksey (ActionCoach CFO at the time) just after the judgement came through I was first told they didn’t have the money.. A joke by the way, as the company reports filed by ActionCoach Europe Sarl for the financial year ending June 2011 showed that ActionCoach Europe had 608k€ cash on hand.

    Early in 2012, I had a further series of exchanges with Vic Ciuffetelli, actual CEO of ActionCoach, to try get an agreement on payment of the damages which ended when he explained that not paying was considered the best option by ActionCoach and that it was up to me to find a way to have the judgement enforced.

    Furthemore, in March 2012, ActionCoach created yet another company to handle it’s franchise contracts in Europe, ActionCoach EMEA Ltd a UK based company. Following this, many contracts that had initially been established with ActionCoach Europe Sarl designated as the Franchisor were subsequently transferred to this new entity. Hard to see what justified such a move other than an attempt to insure that it would be impossible to ever recover any money from ActionCoach Europe Sarl which has no fixed assets otherwise.

    All of this is obviously important for anyone considering buying into this Franchise as what it means is that ActionCoach effectively does not show any respect for the terms of the contracts that it imposes on its franchisees. All of these contracts impose Arbitration for dispute resolution, in my case the ICC arbitration court in Paris, a far more costly process than going through a normal court:

    ” Any controversy, dispute or claim arising out of or relating to this Agreement shall be finally settled by arbitration in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce (ICC), or any successor provision effective as of the commencement of the Arbitration (the “Rules”). The arbitration shall be held in Paris, France. The arbitration procedures shall be conducted in English.”

    However, in spite of having the means to pay out over 200k€ to Baker & McKenzie in legal costs for the arbitration procedure, ActionCoach has so far systematically refused to pay the interest and damages awarded to me in the final decision.

    Assuming this is how it ends, I will get around to publishing all the official documents supporting the story I am telling here. For one, it is good that anyone dealing with this company fully understands what they are dealing with and secondly, the details of my case could well be of interest to anyone else who has the courage to take on ActionCoach in a legal procedure.

    D O’Leary
    Former Action Coach ML for the Burgandy and Rhone Alpe regions of France

    D O'Leary

    August 29, 2015 at 8:47 am

  8. I and also my buddies ended up analyzing the good helpful tips located on your site while before long developed a horrible feeling I never thanked the blog owner for those secrets. Most of the boys had been so stimulated to read through all of them and have in effect without a doubt been making the most of these things. I appreciate you for being well helpful as well as for figuring out this sort of notable things millions of individuals are really needing to be informed on. Our sincere apologies for not saying thanks to earlier.

    Mary Guzzo

    January 30, 2017 at 3:41 am


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