TAB Franchise FDD, Profits & Costs (2025)
The Alternative Board (TAB) was created in 1990 by Allen Fishman in St. Louis, Missouri, with the goal of giving small and medium-sized business owners access to the kind of strategic support usually available only to large companies.
By 1996, TAB introduced franchising, allowing experienced professionals to guide peer advisory boards and provide coaching to entrepreneurs across different markets. The company is now headquartered in Westminster, Colorado.
TAB delivers value through monthly peer advisory board sessions, personalized executive coaching, and its proprietary planning tools, including the Business Builder’s Blueprint and the StratPro Leadership Transformation Program.
What makes TAB stand out is its blended approach—bringing together peer advisory and expert coaching. This model creates a collaborative space where business owners exchange knowledge, gain new perspectives, and strengthen their leadership strategies.
Initial Investment
How much does it cost to start a TAB franchise? It costs on average between $54,000 – $97,000 to start a TAB franchised facility.
This includes expenses for training, technology systems, marketing, and initial working capital. The total investment can vary based on several factors, such as the size of the territory, local market conditions, and the franchisee’s choice of office setup—whether operating from a home office or leasing a commercial space. TAB offers 3 types of franchises:
| Type of Franchise | 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 TAB 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 |
Average Revenue (AUV)
How much revenue can you make with a TAB franchise? A TAB franchised business makes on average $73,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many TAB locations are there?
As of the latest data, TAB has 11 company-owned units and 114 franchised units worldwide.
What is the total investment required to open a TAB franchise?
The total investment required to open a TAB franchise ranges from $54,000 to $97,000.
What are the ongoing fees for a TAB franchise?
TAB franchisees pay a royalty fee that begins at 20% of gross revenue up to a set revenue threshold, and then decreases to 10% once that threshold is surpassed. In addition, there is a marketing and advertising fee of about 2% of gross revenue, or a minimum fixed monthly contribution when applicable, which supports the brand’s overall marketing initiatives.
What are the financial requirements to become a TAB franchisee?
To qualify as a TAB franchisee, you need a minimum net worth of approximately $300,000 and liquid capital of around $70,000 to $125,000.
How much can a TAB franchise owner expect to earn?
The average gross sales for a TAB franchise are approximately $0.07 million per location. Assuming a 15% operating profit margin, $0.07 million yearly revenue can result in $11,000 EBITDA annually.
Who owns TAB?
The Alternative Board (TAB) franchise is owned by Allen Fishman, who founded the company in 1990 and continues to lead its operations.
Disclaimer
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