What is the Daily Noncompliance Fee for Alloy franchisees who are out of compliance with the Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Daily Noncompliance Fee | Currently $100 per day that you are out of compliance, but we reserve the right to change this amount at any time. | Upon demand, via ACH. | See Note 4 |
[Chunk 2 | Item 6: Other Fees] (chunk_id: e6f6292e-9035-4f2f-9da6-28a9dc50c2fb) [Item 6: OTHER FEES]
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- The Daily Noncompliance Fee is currently $100 per 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 we reserve the right to continue charging it until you cure any applicable default. The Daily Fee is in addition to, and not in lieu of, any rights we have under the Franchise Agreement (including termination as set forth in the Franchise Agreement) and is subject to change at any time.
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees may be subject to a Daily Noncompliance Fee. Currently, this fee is $100 per day for each day a franchisee is not in compliance with the Franchise Agreement or any mandatory standard or procedure.
The Daily Noncompliance Fee is payable via ACH (Automated Clearing House) immediately upon 24 hours' notice. Alloy retains the right to continue charging this fee until the franchisee corrects the noncompliance issue. This fee is in addition to any other rights Alloy has under the Franchise Agreement, including the right to terminate the agreement.
It is important to note that Alloy reserves the right to change the amount of the Daily Noncompliance Fee at any time. This means that the fee could increase during the term of the franchise agreement, potentially adding a significant financial burden if a franchisee falls out of compliance. Prospective franchisees should be aware of this potential cost and ensure they fully understand and can comply with all requirements of the Franchise Agreement to avoid incurring these fees.