The Alternative Board Franchise Costs, Fees & FDD

Year Business Began: 1990

Franchising Since: 1996

Headquarters: Westminster, Colorado

Estimated Number of Units: 340

Franchise Description: TAB Boards International, Inc. is the franchisor. The franchisor offers franchises for the operation of a business that uses licensed methods under certain trademarks to (i) form advisory boards (TAB Boards) composed of business leaders (called TAB members) and facilitate monthly meetings of TAB Boards, (ii) provide business coaching sessions and advice, and (iii) offer existing proprietary tools and programs such as StratPro® and HI-MAP™ and future proprietary tools and programs.
Training Overview: The initial training program consists of online training and up to eight days of training conducted at the franchisor’s headquarters. In addition to the initial training program, franchisees will also receive additional training on TAB Member acquisition and TAB Services delivery, StratPro Process training, HI-MAP Program training, and additional online training. Franchisees will participate in business coaching starting the month of their start of service offering for the frequency and duration set out in the operations manual. Franchisees will participate in any continuing advanced training that the franchisor chooses to offer in the future. The continuing advanced training may be provided in person, virtually, or by any other method the franchisor determines in its discretion. The franchisor will produce an international conference that franchisees will attend on an annual basis in the franchisor’s discretion.

Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets the franchisor owns, or from other channels of distribution or competitive brands the franchisor controls. The franchisor will grant franchisees a license to use the licensed methods under the trademarks for the operation of a TAB business anywhere within the United States and Canada. The territory may differ significantly from the territories of certain pre-existing franchisees.

Obligations and Restrictions: If franchisees are a partnership, corporation, limited liability company or other legal entity, they will designate one owner, member or officer (the managing party) who will have management responsibility for operating the TAB business. Franchisees or their managing party will use their best efforts to develop their TAB business and will be personally responsible for the management and supervision of their TAB business on a day-to-day basis. The managing party must own 51% of the TAB business or the franchisee’s interest (if they are an entity or partnership). To ensure that the highest degree of quality and service is maintained, franchisees will operate the TAB business in strict conformity with the methods, standards and specifications in the operations manual and as the franchisor may otherwise require in writing.

Term of Agreement and Renewal: The length of the initial franchise term is five, seven, or 10 years from the start of service offering at the franchisee’s election. Franchisees may renew their right to operate a TAB business for successive consecutive year terms equal to the initial term period they select (five, seven, or 10 years) if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligations. Veterans of the United States military are eligible to receive a 10% discount on the initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$19,500	$44,000
Initial Training Fee	$24,500	$24,500
Marketing Fee	$7,865	$9,865
Mentor’s Travel and Living Expenses	$0	$4,000
Franchisee’s Travel and Living Expenses During Initial Training Program	$0	$5,000
Equipment	$0	$2,400
Supplies, Stationery and Business Cards	$250	$500
Deposits and Licenses	$0	$600
Website Fees for Three Months from the Start of Service Offering	$60	$60
Accounting and Professional Fees	$0	$3,500
Additional Fees for First Three Months After the Start of Service Offering	$1,700	$2,225
ESTIMATED TOTAL	$53,875	$96,650

Other Fees

Type of Fee	Amount
Royalty Fee	A percentage of the annual amounts collected on the franchisee’s behalf on a sliding scale. Franchisees will not pay more than $60,000 as royalty fees in any given calendar year.
Minimum Royalty Fee	Beginning on the tenth month after franchisees begin offering services, they will pay the minimum royalty fee as defined in the FDD.
Member Administration and Support Fee	$10 for each of the franchisee’s TAB members.
Marketing Development Fee	For the first twelve months from the start of service offering, 2% of the amounts collected on the franchisee’s behalf. Beginning on the thirteenth month from the start of service offering, the greater of (i) $300, or (ii) 2% of amounts collected on the franchisee’s behalf for the previous month.
Portion of Business Assessment Fee	The then-current fee. The current business assessment fee is $100.
Credit Card and EFT Collection Fees	The franchisor’s direct costs.
International Conference Facilitator Registration Fee	The then-current international conference facilitator registration fee. The current fee is $1,500.
Technology Fee	The then-current fee. The current fee is $60 per month.
Mentor Travel and Living Expenses	Travel, accommodation and living expenses incurred by the mentor while providing field support training services.
Interest	Lesser of 18% per annum of highest interest rate allowed by law.
Facilitator Training Fee and Expenses	The then-current fee. The current fee is $3,000 plus travel and living expenses.
Transfer Fee	$7,500
Renewal Fee	$5,000
Fee Upon Continuing After Expiration of the Franchise Agreement or Holdover Fee	The greater of the minimum royalty fee or 50% of amounts collected on the franchisee’s behalf.
TAB Audit of Franchisees’ Financial Records	Cost of inspection or audit, plus amount of understatement, if any, due plus interest.
Indemnification and Costs and Attorneys’ Fees	Variable.
Management Fee for Providing a Certified Facilitator Because of Franchisee’s Death or Disability	50% of amounts collected on the franchisee’s behalf.
Late Charge	The then-current late fee for late or non-submittal of reports, tips and the like. The current late fee is $100.
Early Termination Fee	$25,000

The above information has been compiled from the FDD of The Alternative Board. Year of FDD: 2025.
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