How is the Brand Development Fund Fee for Alloy paid?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 7% of Gross Sales | Payable weekly on Wednesday (unless Wednesday is not a business day, then it is due on the next business day) | Royalty Fees are calculated based on Gross Sales for the previous week ending Sunday. Amounts due will be withdrawn by EFT from your designated bank account. |
| Brand Development Fund Fee | 2% of Gross Sales | Payable weekly at the same time and in the same manner as the weekly Royalty Fee | The Brand Development Fund is described in Item 11 |
- "Gross Sales" means the total gross revenue from the provision of all products and services sold or performed in, at, from or away from the Alloy Facility, or through or by means of the Franchise Business, whether from cash, check, credit card, debit card, barter or exchange, or other credit transactions, and regardless of collection, and including (a) session fees, membership fees, initiation fees, enrollment fees, processing fees, paidin-full dues, renewal fees, corporate/third party payer fees, monthly dues and any fees or revenue generated and derived during any pre-sales; (b) fees and charges for optional services such as personal training, small group training and other optional programs we design; (c) fees charged to non-members using the Facility's services; and (d) revenue derived from merchandise and product sales. Sales taxes, use taxes, and other similar taxes added to the sales price and collected from the customer and paid to the appropriate taxing authority are deducted from Gross Sales.
On Monday of each week, you must provide us with a report of your Alloy Facility's Gross Sales for the previous week ending Sunday. We may electronically access your computer system to obtain this information, but you must still provide us with this report.
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Brand Development Fund Fee is 2% of Gross Sales. This fee is payable weekly, at the same time and in the same manner as the weekly Royalty Fee. The Royalty Fee is due each Wednesday, unless Wednesday is not a business day, in which case it is due on the next business day. Alloy will withdraw the Brand Development Fund Fee from the franchisee's designated bank account via Electronic Funds Transfer (EFT).
Gross Sales are defined as the total gross revenue from all products and services sold or performed in, at, from, or away from the Alloy Facility, or through the Franchise Business. This includes revenue from cash, check, credit card, debit card, barter or exchange, or other credit transactions, regardless of collection. It also encompasses session fees, membership fees, initiation fees, enrollment fees, processing fees, paid-in-full dues, renewal fees, corporate/third party payer fees, monthly dues, pre-sales revenue, fees for optional services like personal training, fees charged to non-members, and revenue from merchandise and product sales. Sales taxes, use taxes, and other similar taxes collected from customers and paid to the appropriate taxing authority are deducted from Gross Sales.
Each Monday, franchisees must provide Alloy with a report of their Alloy Facility's Gross Sales for the previous week ending Sunday. Alloy may also electronically access the franchisee's computer system to obtain this information, but the franchisee is still required to provide the report. Franchisees should ensure they have sufficient funds in their bank account to cover the Brand Development Fund Fee and other payments to avoid incurring insufficient funds fees. Understanding these payment terms and sales reporting requirements is crucial for managing the financial obligations of an Alloy franchise.