The Alternative Board
Bottom line
- Total investment $77K – $95K including a $44K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 19 loans (below the industry average).
- System contracting at -15.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one THE ALTERNATIVE BOARD unit return on the cash you put in?
Unlevered ROIC · per unit
128%
Above typical band (30–60%)
Overview
About
THE ALTERNATIVE BOARD franchisees operate peer-advisory boards connecting small business owners for peer mentoring, strategic guidance, and accountability. Franchisees facilitate monthly board meetings, manage member relationships, and collect membership dues on behalf of the franchisor—generating revenue primarily through commission-based royalties on amounts collected rather than direct client fees.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 39 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
TAB presents meaningful acquisition risk due to shrinking franchise network, opaque financial performance, aggressive royalty structure, and recent litigation over franchisee payment defaults—compounded by unprotected territory and lack of earnings transparency.
Score breakdown · what drove the 56 / 100 rating
- 01MINORDeclining unit count (-4.0% YoY) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of earnings claims and ROI assessment
- 03MINORHigh royalty rate (20% at entry) on collected amounts creates aggressive cash drain, especially problematic for early-stage advisory businesses with variable cash flow
- 04HIGHRecent litigation (2023) involving non-payment and covenant violations indicates franchisee financial distress and enforcement challenges
- 05MINORUnprotected territory exposes franchisees to direct competition from other TAB board members in same geographic area
- 06MED5-year term is relatively short; limited runway to build recurring client base and recoup $44,000 franchise fee plus initial investment
- 07MINORSliding scale royalty structure (20%-6%) suggests performance-based model that may mask true cost burden in early years
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
THE ALTERNATIVE BOARD · FDD (2025) PDF