Is Alloy's approval of a proposed supplier dependent on the results of the evaluation and testing of samples?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee wishes to use a supplier not already approved by Alloy, they must seek approval from Alloy. As part of this process, Alloy has the right to request that the franchisee obtain permission from the supplier for Alloy's representatives to inspect the supplier's facilities.
Furthermore, Alloy can require the franchisee to provide samples from the proposed supplier for evaluation and testing. This evaluation and testing can be conducted either by Alloy itself or by an independent testing facility designated by Alloy. The franchisee may be charged an evaluation fee to cover the costs of these evaluations and tests.
Alloy will then notify the franchisee in writing of its decision to approve or disapprove the proposed supplier within 30 days of receiving the evaluation request. Alloy also retains the right to revoke approval of specific products, equipment, or suppliers if they no longer meet Alloy's standards. If approval is revoked, the franchisee must immediately stop using or selling any disapproved products and cease purchasing from any disapproved supplier.