Can Alloy charge an Alloy franchisee an evaluation fee to conduct an evaluation and testing of a proposed supplier?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 FDD, Alloy reserves the right to charge franchisees a site evaluation fee for each on-site evaluation they conduct. This means that if Alloy deems it necessary to perform an on-site evaluation, the franchisee will be responsible for covering the associated costs.
This fee is not fixed, as the FDD states that Alloy can charge its "then-current site evaluation fee." This implies that the fee amount may change over time. It is important to note that this fee applies to each on-site evaluation, meaning multiple evaluations could result in multiple charges for the Alloy franchisee.
Prospective Alloy franchisees should inquire about the current site evaluation fee and under what circumstances Alloy would conduct an on-site evaluation. Understanding these potential costs is crucial for accurate financial planning and budgeting.