What is the annual interest rate charged by Alloy on overdue amounts owed to them or their affiliates?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
es to collect the amounts owed when due. You are responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this subparagraph.
- H. Interest Charges; Late Fees. Any and all amounts that you owe to us or to our affiliates will bear interest at the rate of 12% per annum or the maximum contract rate of interest permitted by governing law, whichever is less, from and after the date of accrual.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, any amounts a franchisee owes to Alloy or its affiliates will accrue interest. The annual interest rate is the lesser of 12% or the maximum contract rate permitted by the governing law. This interest begins accruing from the date the amount was originally due.
This means that if an Alloy franchisee is late on payments for things like royalty fees, brand development fund fees, or any other amounts owed, they will be charged interest on the outstanding balance. The specific interest rate will depend on the state's legal limits, but it will not exceed 12% per year.
In addition to interest charges, Alloy also charges a $100 service fee for each delinquent report or payment. This highlights the importance of franchisees making timely payments and submitting required reports to avoid these additional costs. Franchisees should be aware of these financial penalties and factor them into their business planning to maintain a healthy financial relationship with Alloy.