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The Alternative Board Franchise Costs & Fees

Date of Incorporation: 1990
Franchising Since: 1996
Headquarters: Westminster, Colorado

Business Description: TAB (The Alternative Board) operates under the name “TAB Boards International, Inc.” as the franchisor. TAB Businesses form TAB Boards of TAB Members, facilitate TAB Board Meetings and provide business coaching.

Franchise Offer: TAB Boards International, Inc. offers franchises for the operation of a business that uses licensed methods under certain trademarks to (1) form advisory boards of business leaders (2) facilitate monthly meetings of TAB Boards and (3) provide business coaching sessions (collectively, a “TAB Business”).

Financial Assistance: The franchisor does not offer direct or indirect financing or guarantees franchisees’ note, lease or other obligations.

Training and Assistance: Before the franchisees’ Start of Business Operations, the franchisee or Managing Party must attend and complete the HQ Training Program to the franchisor’s satisfaction. The HQ Training Program is held in Westminster, Colorado and must be completed within six months after signing the Franchise Agreement. HQ Training Program sessions are planned monthly and are subject to change depending on space availability and franchisee attendance level. The franchisee may be required to study materials for up to fifty additional hours before, during and after your classroom training begins. The franchisee will participate in business coaching starting the month of Start of Business Operations for the frequency and duration set out in the Operations Manual. Additionally, an annual international conference is held that franchisees will attend at the expense of $1,500 for two people. The franchisor may also provide the franchisee with marketing best practices, and assistance with marketing plans and marketing budget.

Territory: The franchisee will be granted a Protected Territory. Franchisees are prohibited from conducting any TAB Board Meetings, coaching for TAB Members, or other TAB Business activities outside their Protected Territory. Protected Territories are designated based on certain factors including postal codes, geographic size and demographics.

Term of Agreement and Renewal: The length of the initial term is seven years or 10 years from the effective date of the franchise agreement. If the franchisee meets the conditions, they may renew their TAB Business for successive consecutive year terms equal to the initial term period of either seven or 10 years.

Obligations and Restrictions: The franchisor requires the franchisee or Managing Party will use best efforts to develop the TAB Business and will be personally responsible for the management and supervision of the TAB Business on a day-to-day basis. The Managing Party must own 51% of the TAB Business. To ensure that the highest degree of quality and service is maintained, the franchisee will operate the TAB Business in strict conformity with the methods, standards and specifications in the Operations Manual.

Estimated Number of Units: 190

Investment Tables:
Initial Investment for a MM TAB Business Franchise
Name of Fee Low High
Initial Franchise Fee $44,000 $44,000
Initial Training Fee $19,500 $19,500
Marketing Fee $2,188 $2,188
Telemarketing, LinkedIn Prospecting Service Fees $4,800 $8,400
FST Travel and Living Expenses $2,400 $4,000
Expenses During Initial Training Program $4,000 $4,000
Equipment $0 $2,400
Supplies, Stationery and Business Cards $250 $500
Deposits and Licenses $0 $600
Technology Fee $360 $360
Accounting and Professional Fees $0 $1,500
Additional Funds (first 3 months) $1,700 $2,225
ESTIMATED TOTAL $75,198 $87,673
Initial Investment for a NMM TAB Business Franchise
Name of Fee Low High
Initial Franchise Fee $29,500 $29,500
Initial Training Fee $19,500 $19,500
Marketing Fee $2,188 $2,188
Telemarketing, LinkedIn Prospecting Service Fees $4,800 $8,400
FST Travel and Living Expenses $2,400 $4,000
Expenses During Initial Training Program $0 $4,000
Equipment $0 $2,400
Supplies, Stationery and Business Cards $250 $500
Deposits and Licenses $0 $600
Technology Fee $360 $360
Accounting and Professional Fees $0 $1,500
Additional Funds (first 3 months) $1,700 $2,225
ESTIMATED TOTAL $60,698 $73,173
Initial Investment for an Optional Franchise Fee TAB Business Franchise
Name of Fee Low High
Option Fee $9,450 $9,450
Initial Training Fee $19,500 $19,500
Marketing Fee $2,188 $2,188
Telemarketing, LinkedIn Prospecting Service Fees $4,800 $8,400
FST Travel and Living Expenses $2,400 $4,000
Expenses During Initial Training Program $4,000 $4,000
Equipment $0 $2,400
Supplies, Stationery and Business Cards $250 $600
Deposits and Licenses $0 $600
Technology Fee $360 $360
Accounting and Professional Fees $0 $1,500
Additional Funds (first 3 months) $1,700 $2,225
ESTIMATED TOTAL $40,648 $53,223
Other Fees
Type of Fee Amount
Royalty Fee for MM TAB Business Franchise or NMM TAB Business Franchise 20% of the annual Gross Revenue from the TAB Opportunity.
Royalty Fee for Optional Franchise Fee TAB Business 50% of the annual Gross Revenue from the TAB Opportunity.
Member Administration and Support Fee $10.00 per TAB Member.
Marketing Development Fee For first twelve months from Start of Business Operations, 2% of Gross Received Revenue.
Technology Fee $120.00 per month.
Portion of Business Assessment Fee The greater of (1) $100.00, or (2) 20% of the activation fee charged to new TAB Members.
International Conference Facilitator Registration Fee $1,800
Updating Marketing List $0.20 per record.
Confirmation Promotional Gift $4.00 each plus shipping.
LinkedIn Prospecting Service Fee $47.99 per month.
Field Support Trainer Travel and Living Expenses Expenses incurred whole providing field support training services.
Additional Marketing Support Fee Current fee, depending on type of support.
FST Fee for Additional Field Support Training Services Between $1,200 and $2,000 for four days of FST services.
Advanced Coaching Program $2,800
TAB Promotional Materials Varies.
Business Franchisee Coaching Service Fees and Expenses $200 per month.
Interest Lesser of 18% per annum of highest interest rate allowed by law.
Facilitator Training Fee $2,000 plus travel.
Transfer Fee and Training Fee for Purchaser of Franchise $7,500 and the Initial Training Fee at current rate.
Renewal Fee $5,000
Fee Upon Continuing After Expiration of the Franchise Agreement Greater of Minimum Royalty Fee or 50% of Gross Revenue from TAB Opportunity.
TAB Quality Review of TAB Board Meetings and/or Private Coaching Session Reasonable travel and accommodation expenses of person doing the audit.
TAB Audit of Franchisees’ Financial Records Cost of inspection or audit, plus amount of understatement, if any, due plus interest.
Indemnification Varies.
Management Fee for Providing a Certified Facilitator Because of Death or Disability 50% of franchisees’ Gross Revenue.
Late Charge $100
Early Termination Fee for MM TAB Business Franchises and Optional Franchise Fee TAB Business Franchises 27% of the remaining Minimum Royalty Fee payments under the Franchise Agreement.

The above information has been taken from the FDD of The Alternative Board. Year of FDD: 2016

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