The Alternative Board (TAB)
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The Alternative Board (TAB) brings together owners of privately held businesses to overcome challenges and seize new opportunities with a combination of peer advice and business coaching. Board members meet monthly to learn from one another’s successes in order to grow their businesses. TAB is the world’s largest franchisor of peer advisory and coaching solutions, offering ongoing training and field support and aggressive growth opportunities.
TAB franchisees chair monthly peer advisory board meetings of owners, CEOs and presidents of privately owned companies. These peer advisory boards typically consist of 10 members from non-competing businesses. In addition to facilitating TAB Board meetings, franchisees also provide individual coaching sessions utilizing the easy-to-use Strategic Business Leadership (SBL) process. Through this process, franchisees can assist business owners in strategically leading their businesses to greater profitability and success.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
166 |
152 |
146 |
| | % Change | -- |
-8.4% |
-3.9% |
| | Company-Owned |
8 |
9 |
7 |
| | % Change | -- |
12.5% |
-22.2% |
| | Total |
174 |
161 |
153 |
| | % Change | -- |
-7.5% |
-5.0% |
| | Franchised as % of Total |
95.4% |
94.4% |
95.4% |
Investment Required
The franchise fee for a TAB franchise ranges from $17,500 to $52,500 depending on the type of territory.
TAB provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$17,500 |
$52,500 |
| |
Initial Training Fee |
$14,000 |
$14,000 |
| |
Field Support Training Service Fee |
$6,000 |
$6,000 |
| |
Expenses While Training |
$6,000 |
$9,200 |
| |
Mass Marketing Campaign Costs |
$10,260 |
$20,520 |
| |
Confirmation Promotional Gift |
$320 |
$320 |
| |
Supplies, Stationary, and Cards |
$325 |
$600 |
| |
Equipment |
$0 |
$4,800 |
| |
Deposits and Licenses |
$0 |
$600 |
| |
Technology Fee (3 Months) |
$342 |
$342 |
| |
Satellite Website Setup |
$288 |
$288 |
| |
Accounting and Professional Fees |
$0 |
$1,500 |
|
Additional Funds (3 Months) |
$1,700 |
$2,225 |
| |
Total Initial Investment |
$56,735 |
$112,895 |
Ongoing Expenses
TAB franchisees pay a royalty fee ranging from 20% to 50% of membership dues, depending on the type of territory. Additional fees include member administration and support fees and marketing development fees.
What You Get—Training and Support
During the Initial Training Program, franchisees receive training on the functional areas of running a TAB business, from obtaining new members to facilitating board meetings to providing private business coaching. The sessions are delivered by several TAB Corporate employees and peer facilitators using a variety of tools, including presentations, role-playing, videos and more. The training covers everything from marketing and member acquisition to private business coaching sessions and member retention techniques.
With one of the largest marketing departments among business services franchisors, TAB provides ongoing marketing and advertising support as well as access to TAB’s Business Vantage business operations assessment and the Strategic Business Leadership electronic business planner.
Territory
TAB grants protected territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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