TAB Boards International

The royalty rate of 20% is double the typical range for business services franchises (6-10%). What services, support, or proprietary systems justify this significantly higher royalty compared to competitors?

Why has the system contracted by 22 units (17.6%) over 3 years? Can you provide specific reasons for each closure and termination to distinguish between voluntary exits and franchisor-initiated terminations?

The termination rate of 5.5% is above typical range (0-3.83%). What are the most common reasons franchisees are terminated, and how do these compare to reasons for voluntary closures?

The technology fee of $60/month is below typical range ($100-$500). Does this reflect limited technology support, and what specific technology systems and services are included?

You mention 22 termination causes in the agreement. Can you list the specific causes that can trigger immediate termination without a cure period?

With 9 renewal conditions (above typical range of 5-8), what are the key renewal requirements, and what percentage of franchisees successfully renew at the end of their 10-year term?

The agreement offers no exclusive territory and no encroachment protection. How will the franchisor prevent direct competition from other TAB Boards franchisees in or near my service area?

There is 1 litigation case in the past 3 years initiated by the franchisor. What was the nature of this case, and has it been resolved? Are there any other disputes currently being managed outside of formal litigation?

Item 19 financial data is available but specific sales figures are not disclosed. Can you provide median and average gross revenue for operating franchisees by cohort year, and what percentage of units are profitable?

The non-compete clause is 2 years / 25 miles. If I exit the franchise, can I operate a competing business within 25 miles after 2 years? Are there other restrictions on customer solicitation or non-solicitation agreements?

Personal guarantees are required from all owners covering all franchise obligations. If the franchisee entity fails, what personal assets are at risk, and has the franchisor pursued personal guarantee claims against departing franchisees?

Disputes are resolved through binding arbitration in Denver, Colorado. Are arbitration costs shared, and would a franchisee be required to travel to Denver for hearings? What is the average cost and duration of arbitration cases?

The transfer fee is $7,500 and renewal fee is $5,000. Are there other fees required during the 10-year term (e.g., training updates, system upgrades, compliance audits) that should be factored into ongoing costs?

What support and training are provided initially and ongoing? The Support & Training score of 69 is below the typical range (74-91) for this category. How does this translate to actual training hours, mentoring, and operational support?

How many units have been terminated in the past year, and what were the specific violations or breaches? Have any of these terminations resulted in litigation or dispute resolution proceedings?

Of the 15-17 units that close annually, what percentage are reported as voluntary closures versus franchisor-initiated terminations, and what are the primary causes cited by departing franchisees?

With no renewal options disclosed, are renewals at the franchisor's sole discretion? What conditions must be met to be eligible for renewal, and are there any franchise fees or system upgrades required to renew?

Given the 13.6% annual turnover rate, what is the average lifespan of a TAB Boards franchisee, and what percentage of the original franchisee group from 3 years ago is still operating today?

The liability/indemnification clause requires personal guarantees from all owners. Has the franchisor enforced these guarantees, and if so, what were the amounts claimed against departing franchisees?