TAB received the word in 2010 that long-time and well-respected TAB franchisee Bob Zelnick had a terminal illness. Realizing that his TAB business was an asset that he wanted to preserve value in for his family, he identified a sophisticated family member as an agent to manage his estate.
Due to the sudden notice of the illness and short timeframe, the purchase price had the potential to be significantly reduced. TAB, Zelnick and the agent worked together to establish a framework to help with this demanding transition.
First, they allowed the sale to occur with a partial cash payment up front with the balance to be paid off on a payment plan. Fortunately, the business was generating significant revenue and was able to more than cover the payment plan. They also worked diligently to get the business records in order to support the sale. The third party agent was able to oversee the sale objectively and achieve a fair sale price.
Many TAB franchisees utilize Contract Facilitators (CF) to help them facilitate boards. CFs help TAB franchisees build a larger and more scalable business. A CF is ideal to take over a TAB business because of their familiarity with TAB and the members. Fortunately, Bob had a several good CFs including Chris Lipper.
Chris Lipper is an inventor and intellectual property consultant who has a long history with The Alternative Board. He was a member of the first TAB board in Zelnick’s territory starting in 1999. He later served as a contract facilitator for TAB North Central New Jersey, the franchise he eventually purchased.
Already in the market for a franchise of his own, Lipper stepped in after Zelnick passed away. This sale happened quickly due to the unfortunate circumstances. All parties worked diligently to preserve the members. TAB met with Zelnick’s boards during the transition period to assure them that they will have continuity and our full corporate support. It is important to note that there was a 6-month period between the time of Zelnick’s death and Lipper taking over the business. There was very little member attrition during this period which is evidence of the incredible bonding between TAB board members.
Lipper’s decision to acquire the franchisee and his commitment to the group did pay off. In 2011 he took over the franchise. Since then he has grown it from 36 members to over 60 members with nine operating boards. He has experienced tremendous success with TAB and believes he can eventually double the number of boards that he operates. Lipper is passionate about TAB and the value to business owners and is completely dedicated to the cause. Lipper attributes his success growingthe business to establishing a “rhythm” to his business development efforts. He does very little marketing, online or off. His strategy revolves around networking, asking for referrals, and having one or two Business Owner Roundtable board meetings for potential members every month.
“I try to give 3-4 referrals a day to my members. I also know how many networking events I need to do every month, how many first contacts I need to make, and so on. The whole key is to get rhythm – and not to wing it. This doesn’t happen by mistake.”
As far as recruiting other TAB CFs to help him with his growth, Lipper says they usually find him. Two are past TAB board members. He looks for candidates who can leave their egos at the door and not need to be the smartest person in the room. “I take very little credit for the success of TAB in terms of my members’ experience,” he says. “What makes a good board meeting isn’t the feedback they get from me, it’s the feedback they get from each other.”
Even though running the franchise is a lot of work, Lipper practices what he preaches to his members. He ensures he has a healthy work/life balance by coming in early and not staying late. He also maintains that it never really feels like work. “I truly like my members. Being a TAB franchise owner is an amazing way to make a living. It’s a lot of fun.”
