What is the condition for Alloy to charge the Daily Noncompliance Fee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
liance with the Franchise Agreement or any mandatory standard or procedure. The Daily Noncompliance Fee is payable via ACH immediately upon 24 hours' notice, and may be charged until you cure any applicable default. The Daily Noncompliance Fee is in addition to, and not in lieu of, any rights we
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Daily Noncompliance Fee is charged in addition to any other rights Alloy has under the agreement, including termination for defaults. As of the agreement date, the fee is $100, but this amount can change.
This means that if a franchisee fails to comply with the franchise agreement, Alloy can impose this daily fee on top of any other penalties or actions they might take. This could include actions such as terminating the agreement if the noncompliance is severe enough. The franchisee should be aware that this fee is not a substitute for complying with the agreement but an additional penalty.
The fact that the fee amount is subject to change means that Alloy can increase the financial burden of noncompliance at any time. It is important for a prospective franchisee to understand what constitutes noncompliance and to ensure they have systems in place to meet all requirements of the franchise agreement. This fee serves as a financial incentive for franchisees to adhere strictly to the terms and conditions set forth by Alloy.
Franchisees should clarify with Alloy what specific actions or omissions would trigger this fee and how they will be notified of noncompliance issues. Understanding the potential triggers and having clear communication channels can help franchisees avoid incurring this daily fee and maintain a positive relationship with Alloy.