What may Alloy choose to do with Allowances collected?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliates based upon your purchases of products and services from manufacturers, suppliers, and distributors. We or our affiliates will have all of your right, title, and interest in and to any and all of these Allowances. We or our affiliates may collect and retain any or all of these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). We may also choose to contribute these Allowances to the Brand Development Fund, but if we do so it does not reduce or eliminate your requirement to pay the
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy has the right to collect allowances, rebates, credits, incentives, or benefits from suppliers based on franchisee purchases. Alloy can retain these allowances without restriction, unless the manufacturer, supplier, or distributor provides other instructions. Alloy can also choose to contribute these allowances to the Brand Development Fund. However, if Alloy contributes the allowances to the Brand Development Fund, this contribution does not reduce or eliminate the franchisee's requirement to pay into the Brand Development Fund.
For a prospective Alloy franchisee, this means that Alloy benefits directly from purchasing arrangements that it negotiates on behalf of the system. While these arrangements may include certain benefits to franchisees, Alloy retains control over any monetary benefits derived from these arrangements.
It is important to note that Alloy's decision to contribute these allowances to the Brand Development Fund is optional. This means that there is no guarantee that these funds will be reinvested into the system to benefit franchisees. A prospective franchisee should seek clarification regarding how Alloy intends to use the allowances it collects and whether there are any specific plans for reinvesting these funds into the system.