How is the Daily Noncompliance Fee for Alloy payable?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
g termination for defaults as set forth in this Agreement). As of the date of this Agreement, the Daily Noncompliance Fee is $100, but that amount is subject to change at any time.
- F. Computations and Remittances. Except as otherwise stated in this Agreement, all amounts due and owing to us weekly, and will be paid through electronic funds transfer. You also submit the reports required by subparagraph 9.I of this Agreement. We reserve the right to change the due date for any or all amounts. You must certify the computation of the amounts in the manner and form we specify, and you must supply to us any supporting or supplementary materials as we reasonably require to verify the accuracy of remittances. You waive any and all existing and future claims and offsets against any amounts due under this Agreement, which amounts you must pay when due. We have the right to apply or cause to be applied against amounts due to us or any of our affiliates any amounts that we or our affiliates may hold from time to time on your behalf or that we or our affiliates owe to you.
- G. Electronic Transfer of Funds. You must sign our electronic transfer of funds authorization forms, attached as Schedule C, to authorize and direct your bank or financial institution to transfer electronically directly to our account or our affiliates' account and to charge to your account all amounts due to us or our affiliates. You must maintain a balance in your account
sufficient to allow us and our affiliates to collect the amounts owed when due. You are responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this subparagraph.
- H. Interest Charges; Late Fees. Any and all amounts that you owe to us or to our affiliates will bear interest at the rate of 12% per annum or the maximum contract rate of interest permitted by governing law, whichever is less, from and after the date of accrual.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, all amounts due to Alloy weekly, including the Daily Noncompliance Fee, will be paid through electronic funds transfer. Franchisees must sign Alloy's electronic transfer of funds authorization forms to allow Alloy to directly charge their bank account for all amounts owed. Franchisees are responsible for maintaining a sufficient balance in their account to cover these amounts.
The Daily Noncompliance Fee is currently $100 per day but is subject to change. This fee is in addition to any other rights Alloy has under the Franchise Agreement, including the right to terminate the agreement for defaults. Alloy also reserves the right to change the due date for any or all amounts owed by the franchisee.
Franchisees waive any claims or offsets against amounts due and must pay when due. Alloy has the right to apply any amounts they hold on the franchisee's behalf against amounts owed. Failure to pay on time will result in interest charges of 12% per annum or the maximum contract rate permitted by law, whichever is less, and a $100 service charge for each delinquent payment.