According to Alloy, how must a franchisee operate their Franchised Business?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
must make sure that those licenses are obtained and maintained.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must use the Franchised Business solely for the operation of your Alloy Facility. You must keep your Franchised Business open and in normal operation for the minimum hours and
days as we specify, subject to applicable law and/or the terms of your lease. You must not use or permit the use of the Franchised Business for any other purpose or activity at any time without first obtaining our written consent. You must operate the Franchised Business in strict conformity with the methods, standards and specifications we may require in the Manual or in writing. You must not change the standards, specifications and procedures without our prior written consent.
You must sell or offer for sale only those products and services that we have approved for sale in writing; you must sell or offer for sale all types of products and services specified by us; you should not change our standards and specifications without our prior written consent; and you must stop selling and offering for sale any products or services which we may, in our discretion, disapprove in writing at any time. We have the right to change the types of authorized goods and services and there are no limits on our right to make changes.
You generally have the right to establish prices for the training services and related services and products you offer and sell at your Franchised Business. We may, from time to time, suggest prices for the training services and related services and products you offer and sell. We do, however, have the right to modify the System to give us the right to establish prices for such training services and related services and products, both minimum and maximum. Any such modification will be in writing. Unless we so modify the System, any list or schedule of prices we furnish to you is a recommendation only.
The System may be supplemented, improved or modified periodically by us. You must comply with all of our reasonable requirements in that regard, including offering and selling new or different products or services as specified by us.
You must participate in any membership reciprocity, gift card or loyalty card program we establish.
You are restricted by the Franchise Agreement, the Manual and any other practice or custom with respect to the goods or services which you may offer, which must be approved by us. You are not restricted as to the customers whom you may solicit or service, except that you may not directly solicit customers outside of your Designated Territory.
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Section in | Summary | |
|---|---|---|---|
| Agreement* | Summary | ||
| a. | Length of the | Section 4A | Term is 10 years. |
| term of the | |||
| franchise | |||
| Sections 2 and 4 and | Term depends on the number of Facilities to be | ||
| Provision | Section in | Summary | |
| --- | --- | --- | |
| Agreement* | |||
| Appendix B to the | developed under the Area Development Agreement as | ||
| specifically set forth in Appendix B. |
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 48–49)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must operate their Alloy Facility according to specific guidelines and restrictions. The Franchised Business must be used solely for the operation of the Alloy Facility and kept open during the minimum hours and days specified by Alloy, adhering to all applicable laws and lease terms. Franchisees cannot use the business for any other purpose without Alloy's written consent and must strictly conform to the methods, standards, and specifications outlined in the manual or in writing, and these cannot be altered without prior written consent.
Alloy franchisees are required to sell only approved products and services, and they must offer all products and services that Alloy specifies. They must also discontinue selling any products or services that Alloy disapproves of in writing. While franchisees generally set their own prices, Alloy retains the right to modify the system and establish both minimum and maximum prices for training and related services. Franchisees must comply with any supplements, improvements, or modifications to the system, including offering new or different products or services as specified by Alloy, and participate in any membership reciprocity, gift card, or loyalty card programs that Alloy establishes.
Franchisees are restricted by the Franchise Agreement, the Manual, and any other practice or custom regarding the goods or services they may offer, all of which must be approved by Alloy. However, franchisees are not restricted as to the customers they may solicit or service, except that they may not directly solicit customers outside of their Designated Territory. Prior to opening, Alloy reserves the right to require franchisees to have 75 members who have joined their facility during the pre-sale marketing campaign, although Alloy may allow them to open without 75 members. Franchisees are required to attend weekly coaching and accountability meetings during the pre-sale period and monthly meetings with their Alloy franchise business coach after opening, with failure to attend these meetings putting them out of compliance with their franchise agreement.