How is the Daily Noncompliance Fee for an Alloy franchise paid?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 have under this Agreement (including termination for defaults as set forth in this Agreement).
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 payable via ACH (Automated Clearing House) immediately upon 24 hours' notice. This fee may be charged each day until the franchisee cures the default that caused the noncompliance.
This means that if an Alloy franchisee fails to comply with the Franchise Agreement or any mandatory standard or procedure, Alloy can charge a daily fee. The franchisee will receive a 24-hour notice before the fee is applied. Payment will be automatically deducted from the franchisee's bank account through an ACH transfer.
The FDD also states that the Daily Noncompliance Fee is in addition to, and not in lieu of, any other rights Alloy has under the Franchise Agreement, including the right to terminate the agreement for defaults. As of the date of the Franchise Agreement, the Daily Noncompliance Fee is $100, but that amount is subject to change at any time.
It is important for prospective Alloy franchisees to understand the conditions under which this fee may be applied and to ensure they have sufficient funds in their account to cover any such charges. Franchisees should also be aware that noncompliance can lead to additional penalties, including termination of the Franchise Agreement.