Am I required to participate in more than one Alloy Cooperative?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Cooperative has been established for a geographic area where your Facility is located when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must become a member of the Cooperative. If the Cooperative will operate according to written documents, we must approve of these documents, and a copy of the Cooperative documents applicable to the geographic area in which your Facility will be located will be provided to you if you request it. You will not have to participate in more than one Cooperative.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are not required to participate in more than one Cooperative. Alloy may designate geographic areas with two or more facilities as a region for advertising or marketing cooperatives. If a Cooperative is established for the area where your Alloy facility is located, either when you sign the Franchise Agreement or during its term, you must become a member.
These Cooperatives are formal entities designed to manage marketing programs and promotional materials for members, subject to Alloy's approval. Alloy retains the right to approve all written documents governing the Cooperative's operation. If such documents exist, Alloy will provide them to you upon request.
Currently, there are no Cooperatives in the Alloy system. If a Cooperative is established, your contribution counts toward the local marketing spending requirement. The members determine the contribution amount, but it cannot exceed 1% of gross sales unless the members vote to exceed that amount. Each member, including Alloy or its affiliates, has one vote on Cooperative matters, but no franchisee can have more than 25% of the total vote.