Am I allowed to sell Alloy products for resale?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights granted under this Agreement are limited to the right to develop Facilities located in the Development Territory, and do not include (i) any right to sell products and services identified by the Trademarks at any location or through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), other than at Facilities within the Development Territory pursuant to the terms of the applicable Franchise Agreement, (ii) any right to sell products and services identified by the Trademarks to any person or entity for resale or further distribution, or (iii) any right to exclude, control or impose conditions on our development or operation of franchised, company or affiliate owned facilities at
any time or at any location outside of the Development Territory. You may not use the words ALLOY or any of the other Trademarks as part of the name of your corporation, partnership, limited liability company or other similar entity.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are specifically restricted from selling Alloy products for resale or further distribution. The agreement grants franchisees the right to develop facilities within a defined development territory, but this right does not extend to selling products for resale through any channels. This restriction ensures that Alloy maintains control over its brand and distribution methods.
This limitation means that franchisees must focus on direct sales to end consumers within their authorized Alloy facility. They cannot act as wholesalers or distributors of Alloy products. Alloy retains the right to sell and distribute products through other channels, including the internet, without compensating the franchisee. This allows Alloy to explore alternative methods of distribution and reach a broader market, potentially competing with franchisees.
This policy is important for prospective franchisees to understand, as it defines the scope of their sales activities and prevents them from expanding their business through resale channels. Franchisees should be aware that Alloy retains significant control over product distribution and can leverage alternative methods to reach customers, which may impact a franchisee's potential revenue streams.