conditional

What is the condition for Alloy to approve a supplier not already on the approved list?

Alloy Franchise · 2025 FDD

Answer 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 wants to purchase products, supplies, materials, or equipment from a supplier not already approved by Alloy, they must submit a written request for approval. This request should include any background documents or evidence that Alloy may require.

Alloy has the right to require the franchisee to obtain permission from the supplier for Alloy's representatives to inspect the supplier's facilities. Additionally, Alloy can request samples from the supplier for evaluation and testing, 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 this evaluation and testing process.

Alloy will then notify the franchisee in writing of its decision, either approving or disapproving the proposed supplier, within 30 days after receiving the evaluation request. It's important to note that Alloy reserves the right to revoke its approval of particular products, equipment, or suppliers if they determine that those suppliers 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 the disapproved supplier. This process ensures that Alloy maintains control over the quality and standards of products and services associated with its brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.