What is the current Daily Noncompliance Fee for Alloy?
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 currently $100. However, this amount is subject to change at any time, as determined by Alloy. This fee is in addition to any other rights Alloy has under the Franchise Agreement, including the right to terminate the agreement for defaults.
For a prospective Alloy franchisee, this means that failing to comply with the terms of the Franchise Agreement can result in a daily fee of $100, which can quickly add up. It's important to note that this fee doesn't replace Alloy's other legal options, such as terminating the agreement if the franchisee is in default. Franchisees should ensure they understand and adhere to all requirements outlined in the Franchise Agreement to avoid incurring this fee.
The fact that the Daily Noncompliance Fee is subject to change introduces an element of uncertainty. While the current fee is $100, Alloy reserves the right to modify this amount. Therefore, it is crucial for potential franchisees to inquire about the circumstances under which this fee might be applied and whether there are any caps or limits on the total amount of Daily Noncompliance Fees that can be charged. Understanding these details will help franchisees better manage their compliance and financial obligations under the franchise agreement.