To whom is the Architect/Project Management fee paid for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
NT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $60,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Rent – 3 Months (2) | $14,400- $31,800 | As arranged | As arranged | Landlord |
| Lease and Utility Security Deposits (3) | $4,000-$7,500 | As arranged | As arranged | Landlord and Utility Companies |
| Architect/Project | $10,000- | As arranged | As arranged | Preferred |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–25)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Architect/Project Management fee, which ranges from $10,000 to $32,500, is paid to a "Preferred Vendor." This fee covers the costs associated with hiring an architect to assist with the design, layout, and architectural drawings necessary for obtaining permits, as specified in the Alloy Design Manual. Alloy must approve these plans to ensure they comply with the brand's requirements and presentation standards.
It is the franchisee's and their architect's responsibility to ensure that the construction plans adhere to all applicable laws, ordinances, and building codes, including the Americans with Disabilities Act. The higher end of the estimated range accounts for the possibility of using a preconstruction/construction management company to aid with design, layout, and architectural drawings suitable for permitting.
Prospective Alloy franchisees should note that these costs are part of the initial investment required to set up their franchise. As with other expenditures, the method and timing of payment are arranged between the franchisee and the preferred vendor. It is crucial for franchisees to carefully vet and select their architect/project management vendor to ensure they meet Alloy's standards and comply with all legal requirements. Franchisees should also confirm whether Alloy has a list of preferred vendors or specific requirements for the architect's qualifications.