What is the Daily Noncompliance Fee for an Alloy franchise as of the date of the agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
o recover in part any increase in costs for such services. The monies will be administered by us. The fee will begin when the software is set up and initiated to coincide with training.
- E. Daily Noncompliance Fee. We have the right to charge you a Daily Noncompliance Fee for each day that you remain out of compliance 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, a franchisee may be charged a Daily Noncompliance Fee if they fail to comply with the Franchise Agreement or any mandatory standard or procedure. As of the date of the agreement, this fee is $100 per day. This fee is payable via ACH immediately upon 24 hours' notice and may be charged until the franchisee corrects the issue.
It's important to note that the Daily Noncompliance Fee is in addition to any other rights Alloy has under the Franchise Agreement, including the right to terminate the agreement for defaults. This means that noncompliance could lead to both financial penalties and the loss of the franchise.
Franchisees should be aware that the $100 amount is subject to change at any time, so it is important to review the most current Franchise Agreement for the most up-to-date information. Prospective franchisees should ensure they fully understand all compliance requirements and potential penalties before signing the agreement.