The Alternative Board

## Executive Summary

The Alternative Board (TAB) is a peer advisory and business coaching franchise that helps business owners improve their companies and achieve work-life balance. Established in 1990 and franchising since 1996, TAB has built a network of 355 units operating from its headquarters in Westminster, Colorado. The franchise model is distinctively low-overhead, allowing franchisees to facilitate peer advisory boards and provide one-on-one coaching to business owners in their territories.

## The Numbers

**Initial Investment (Three Franchise Models):**

*Major Metropolitan Area (MM):* - Total Investment: $80,375 - $96,650

*Non-Major Metropolitan Area (NMM):* - Total Investment: $64,875 - $81,150

*Small Area:* - Total Investment: $53,875 - $70,150

**Franchise Fee:** $44,000

**Ongoing Fees:** - Royalty: 20% on annual revenue up to $125,000 - Royalty: 10% on revenue above $125,000 - Marketing Fee: 4% of monthly revenue (or minimum $300 after first year)

**Financial Requirements:** - Liquid Capital: $79,991 - $94,466 - Minimum Net Worth: $300,000 - Veteran Discount: 10% off initial franchise fee

**Franchise Term:** - Options: 5, 7, or 10 years (franchisee choice) - Renewal: Successive terms equal to initial term selected

## The Business Model

TAB operates a unique B2B service model focused on business owner development:

**Core Services:**

*Peer Advisory Boards:* - Monthly meetings of non-competing business owners - Facilitated group discussions and problem-solving - Peer accountability and support - Typically 8-12 members per board

*One-on-One Coaching:* - Monthly private coaching sessions - Strategic planning support - Goal setting and accountability - Business performance improvement

**Revenue Model:** - Recurring monthly membership fees from business owners - Multiple boards create scalable income - Coaching sessions provide additional revenue - High-margin service business with minimal overhead

**Target Market:** - Small to mid-sized business owners - Entrepreneurs seeking peer support - Business owners wanting growth guidance - Leaders seeking work-life balance

## System Health

**Network Statistics:** - Total Unit Count: 355 - Year Established: 1990 - Franchising Since: 1996 - Headquarters: Westminster, Colorado - Franchise Times Ranking: #453 (2024)

**Longevity:** With 35 years of operation and nearly 30 years of franchising, TAB has proven staying power in the business services sector.

## Franchisee Experience

**Ideal Candidate:** - Business ownership or executive experience - Strong facilitation and interpersonal skills - Passion for helping other business owners - Ability to build relationships and network - Comfort with consultative selling

**Training and Support:** - Initial training program - Facilitation methodology training - Member recruitment systems - Marketing and sales support - Ongoing franchisee development

**Business Structure:** - Home-based business model - Minimal overhead requirements - Flexible schedule (boards typically meet monthly) - Scalable through multiple boards

## Key Considerations

**Advantages:** - Very low initial investment ($54K-$97K) - Home-based with minimal overhead - Recurring revenue from memberships - 35-year proven concept - High-margin service business - Flexible lifestyle for franchisee - Strong demand from business owners - No inventory or equipment required - Veteran discount available - Scalable through multiple boards

**Challenges:** - High royalty structure (20% on first $125K) - Requires strong sales and networking ability - Building boards takes time initially - Dependent on local business community health - Competition from other coaching/consulting options - Requires business ownership/executive credibility - No financing offered by franchisor - Success heavily dependent on franchisee personality

## Validation Questions for Prospective Franchisees

1. What are the average revenues and board sizes for established TAB franchisees? 2. How long does it typically take to build the first profitable advisory board? 3. What is the member retention rate across the TAB system? 4. How many boards do successful franchisees typically operate? 5. What training is provided for facilitation and coaching methodologies? 6. How does TAB support member recruitment and lead generation? 7. What is the franchisee satisfaction rate and tenure? 8. How does the tiered royalty structure affect profitability? 9. What happens when board members compete or conflicts arise? 10. How has the virtual/hybrid meeting trend affected the TAB model?