The Alternative Board Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$44,000
Investment required
$54,000 – $97,000
Royalty fee
12% to 20%

The Alternative Board: Empowering Business Leaders Worldwide

Founded in 1990 in the United States, The Alternative Board (TAB) has established itself as a premier provider of peer advisory boards and business coaching services for small to mid-sized business owners.

With its headquarters in Westminster, Colorado, TAB has expanded its reach across various countries, including Australia, Canada, and the United Kingdom. The company began offering franchise opportunities in 1996, enabling experienced professionals to deliver TAB's proven business solutions within their local markets.

TAB's core offerings include monthly peer advisory board meetings, one-on-one executive coaching, and strategic business tools designed to enhance decision-making and drive growth.

By fostering a collaborative environment where business leaders can share experiences and insights, TAB differentiates itself from competitors through its emphasis on collective wisdom and practical solutions tailored to the unique challenges faced by business owners.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

The Alternative Board offers 3 types of franchises:

Franchise Type Initial Investment
MM TAB Business Franchise $80,375 to $96,650
NMM TAB Business Franchise $64,875 to $81,150
Small TAB Business Franchise $53,875 to $70,150

We are summarizing below the main costs associated with opening a MM TAB Business Franchise. For more information on costs required to start a The Alternative Board franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee for an MM TAB Business Franchise $44,000
Initial Training Fee $24,500
Marketing Fee $9,865
Mentor’s Travel and Living Expenses $0 to $4,000
Your Travel and Living Expenses During Initial Training Program $0 to $5,000
Equipment $0 to $2,400
Supplies, Stationery, and Business Cards $250 to $500
Deposits and Licenses $0 to $600
Website Fees for Three Months from the Start of Service Offering $60
Accounting and Professional Fees $0 to $3,500
Additional Funds for First Three Months After the Start of Service Offering $1,700 to $2,225
Total Estimated Initial Investment* $80,375 to $96,650

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Number of units

2024
Franchised units

128

113

101

Company-owned units

14

13

11

Total units

142

126

112

Franchise Disclosure Document

Training

The franchise provides a comprehensive training program for franchisees. Here are the key types of training provided:

  1. Initial Training Program: This includes up to eight days of training conducted at the franchisor’s corporate training and support location, designated venues, or virtually. It also involves pre-training online study materials and additional study requirements before, during, and after the program. The initial training must be completed within six months of signing the Franchise Agreement.
  2. Advanced Business Development Training: A two-day program held at the corporate headquarters or virtually, focusing on advanced business development strategies.
  3. StratPro Process Training: Training on the franchisor's proprietary strategic process, provided at the headquarters or virtually.
  4. Continuing Advanced Training: Ongoing training sessions conducted via in-person meetings, telephone, webinars, or other virtual methods. These sessions may require participants to pass exams to ensure satisfactory completion.
  5. New Franchisee Business Coaching: Post-initial training coaching to assist new franchisees in business operations. This coaching is initially provided at no additional cost.
  6. Contract Facilitator Training: Training specifically designed for contract facilitators to prepare them for facilitating franchisee boards or providing coaching.
  7. Support Training Services: Additional training available upon request to address specific operational needs.
  8. Training for New Managing Party and Additional Owners: If there are changes in management or if additional owners are involved in business facilitation or marketing, they must undergo initial and advanced training as directed by the franchisor.

Territory Protection

TAB Boards International offers a "Protected Territory" to its franchisees as part of the franchise agreement. This territory encompasses up to 20,000 businesses and is determined by third-party vendors selected by the franchisor.

Within this designated area, TAB ensures that it will not operate competing businesses or solicit potential members unless specific exceptions apply, such as pre-existing relationships or natural associations not solicited by the franchisor.

However, maintaining exclusivity for the Protected Territory comes with performance requirements. Beginning the tenth month of operation, franchisees must meet minimum performance standards to retain exclusivity.

Failure to meet these requirements may lead to a loss of territorial exclusivity, allowing TAB to operate or license businesses within the territory. In major metropolitan areas, exclusivity may not be guaranteed and is subject to TAB’s discretion.

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