Is Alloy or its affiliates permitted to be the sole supplier of certain approved supplies?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
NDERED OR PRODUCTS FURNISHED BY ANY SUPPLIER APPROVED OR DESIGNATED BY US. OUR APPROVAL OR CONSENT TO ANY SERVICES, GOODS, SUPPLIERS, OR ANY OTHER INDIVIDUAL, ENTITY OR ANY ITEM SHALL NOT CREATE ANY LIABILITY TO US.
Except for any products, supplies or materials for which we designate a single approved supplier, if you wish to purchase products, supplies, materials or equipment from suppliers not approved by us, you must submit to us a written request to approve the proposed supplier, together with any background documents or evidence we may require. We will have the right to require you to obtain permission from the supplier to allow our representatives to inspect the supplier's facilities and that you deliver samples from the supplier for evaluation and testing to us or to an independent testing facility that we designate. We may charge you an evaluation fee to conduct our evaluation and testing. We will, within 30 days after our receipt of your evaluation request, notify you in writing of our approval or disapproval of your proposed supplier. We may revoke our approval of particular products, equipment or suppliers when we determine that such products, equipment or suppliers no longer meet our standards. Upon receipt of our revocation of approval, you must cease to use or sell any disapproved products and cease to purchase form any disapproved supplier.
C. Memberships. You must sell memberships ("Memberships") only on such terms and conditions as we specify periodically.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy can designate a single approved supplier for certain products, supplies, or materials. If a franchisee wishes to purchase from a supplier not already approved by Alloy, they must submit a written request for approval.
The approval process involves Alloy having the right to require the franchisee to obtain permission from the supplier for Alloy's representatives to inspect the supplier's facilities. Alloy can also require that the franchisee delivers samples for evaluation and testing, either to Alloy or an independent testing facility designated by Alloy. Alloy may charge an evaluation fee for conducting these evaluations and tests.
Alloy will then notify the franchisee in writing of their approval or disapproval within 30 days of receiving the evaluation request. Alloy also retains the right to revoke approval of particular products, equipment, or suppliers if they no longer meet Alloy's standards. If approval is revoked, the franchisee must stop using or selling any disapproved products and cease purchasing from any disapproved supplier. Alloy disclaims any liability arising from the services or products furnished by any supplier approved or designated by them, and their approval of any item does not create any liability for Alloy.