When is the $110,000 development fee due for an Alloy franchise, and to whom is it paid?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
NT AREA DEVELOPER – DEVELOPMENT OF TWO FACILITIES
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Development Fee (1) | $110,000 | Lump |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–25)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the development fee is $110,000. This fee is paid in a lump sum. The payment is due upon signing the Area Development Agreement and is paid to Alloy itself ('Us').
This means that before an area developer can begin developing Alloy facilities, they must pay the full $110,000 development fee upfront. This is a non-refundable fee, so it's crucial for prospective developers to be certain of their plans and financial readiness before signing the agreement.
It is important to note that this fee covers the development of the minimum of two Alloy facilities. If a developer wishes to develop more than two facilities, the development fee will increase as detailed in Item 5 of the FDD. Therefore, potential developers should carefully review Item 5 to understand the full financial implications of developing multiple Alloy locations.