Year Business Began: 1990
Franchising Since: 1996
Headquarters: Westminster, Colorado
Estimated Number of Units: 365
Franchise Description: TAB Boards International, Inc. is the franchisor. The franchisor offers franchises for the operation of TAB businesses that form TAB boards of TAB members, facilitate TAB board meetings, and provide business coaching under the trademarks and using the licensed methods. There are three different franchise models to choose from. The first franchise model is the “major metropolitan area” TAB business franchise. The second franchise model is the “non-major metropolitan area” TAB business franchise. The third franchise model is the “small” TAB business franchise.
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 support training, advanced business development training, new franchisee business coaching, StratPro Process training, and additional online training. 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. Franchisees may be required to satisfactorily complete an exam after each continuing advanced training session. On an annual basis, the franchisor will produce an international conference that franchisees will attend.
Territory Granted: The franchisor will grant franchisees a license to use the licensed methods under the trademarks for the operation of a TAB Business within a protected territory. A protected territory will have up to 20,000 total businesses as determined by third-party vendors the franchisor selects. As long as franchisees are in compliance with their Franchise Agreement and subject to reserved rights, the franchisor will not engage in or license others to engage in the operation of a TAB business in the protected territory or to solicit prospective TAB members with offices only in the protected territory with certain exceptions. In certain major metropolitan areas, the franchisor may offer a protected territory without any exclusivity rights in its discretion. These exceptions will be disclosed to potential franchisees for any such protected territory. Beginning the tenth month from the start of service offering, to maintain the territorial exclusivity of the protected territory, franchisees must generate a minimum amount of TAB membership revenue each standard calendar quarter.
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 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 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 (seven or 10 years) if requirements are met.
Financial Assistance: Neither the franchisor nor any agent or affiliate currently offers, directly or indirectly, any financing to franchisees, nor does it guarantee any lease or other obligations for franchisees.
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $19,500 | $44,000 |
| Initial Training Fee | $24,500 | $24,500 |
| Marketing Fee | $9,865 | $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 | $55,875 | $96,650 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 20% of the annual amounts collected on the franchisee’s behalf from $0 to $125,000, and 10% of the annual amounts collected on the franchisee’s behalf that exceeds $125,000. |
| Minimum Royalty Fee | Beginning on the tenth month after franchisees begin offering services to the public, they will pay the greater of the royalty fee based on the type of TAB business franchise they purchase or the minimum royalty fee as defined in the FDD. |
| Telemarketing Service Fees, LinkedIn Prospecting Service Fees, Online Meeting Service Subscription Fees, and Other Expenses for Required Mass Marketing Campaign | $13,365 for the first year marketing after the first three months of operation. |
| Member Administration and Support Fee | $10.00 for each of the franchisee’s TAB members. |
| Marketing Development Fee | For the first twelve months from the start of service offering, 4% 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) 4% of amounts collected on the franchisee’s behalf for the previous month. |
| Portion of Business Assessment Fee | The greater of (1) $100, or (2) 20% of the activation fee charged to new TAB members. |
| Credit Card and EFT Collection Fees | 80% of any credit card or EFT fees charged by third parties when the annual amounts collected on the franchisee’s behalf ranges from $0 to $125,000, and 90% of any credit card or EFT fees charged by third parties when the annual amounts collected exceeds $125,000. |
| 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 $20 per month. |
| CRM System Fee | The then-current fee. The current fee is $299 per year. |
| Domain License Fee | The then-current fee. The current fee is $44 every two years. |
| Updating Marketing List | The then-current cost to purchase a new marketing list. The current cost is $0.28 per record. |
| Confirmation Promotional Gift | The then-current rate. The current fee is $4.00 each plus shipping. |
| Mentor Travel and Living Expenses | Travel, accommodation and living expenses incurred while providing field support training services. |
| Additional Third Party Marketing Expenses | Cost of owner-to-owner sales training, outbound LinkedIn marketing, LinkedIn sales navigator license and mass marketing (telemarketing) campaign. |
| Additional Marketing Expense to TAB | Nine months of a calling platform service at a cost of $600 per month. |
| Additional Marketing Support Fee | The then-current fee, depending on the type of support franchisees request. |
| Mentor Service Fee for Additional Support Training Services | The then-current service fee. The current service fee is $3,500 for four days of support training services. |
| Advanced Coaching Certification | The then-current rate. The current rate is $2,700. |
| TAB Promotional Materials | Will vary based on the then-current published price list. |
| Business Franchisee Coaching Service Fees and Expenses | The then-current fee. Franchisees will pay this fee if they desire to continue to meet with their business coach or if they fail to meet their minimum royalty fee and the franchisor requires franchisees to meet with a business coach. The current fee is $200 per month. |
| 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 - $5,000 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 Quality Review of TAB Board Meetings or Private Coaching Session | Reasonable travel and accommodation expenses of persons doing the audit. |
| 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 | 27% of the remaining minimum royalty fee payments under the Franchise Agreement. |
| Prospect Exception Fee | The greater of $500 or one month’s standard membership dues for the prospect exception. |
The above information has been compiled from the FDD of The Alternative Board. Year of FDD: 2023.
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