Is an Alloy Cooperative required to prepare an annual financial statement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently there are no Cooperatives in the System. The Cooperative is not required to prepare an annual financial statement.
Each Cooperative member, including us or our affiliates, will have one vote on all Cooperative matters, but no franchisee (or commonly controlled group of franchisees) will have greater than 25% of the total vote.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Cooperative is not required to prepare an annual financial statement. Currently, there are no Cooperatives in the Alloy system.
If a Cooperative is established in the future, it will be operated solely as a conduit for the collection and expenditure of Cooperative fees for specific marketing purposes. Alloy must approve any marketing or promotional plans or materials used by the Cooperative.
Each Cooperative member, including Alloy or its affiliates, will have one vote on all Cooperative matters. However, no franchisee (or commonly controlled group of franchisees) will have greater than 25% of the total vote.