When is the Daily Noncompliance Fee payable by an Alloy franchisee?
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, the Daily Noncompliance Fee is payable via ACH (Automated Clearing House) immediately upon 24 hours' notice. This fee is charged for each day an Alloy franchisee remains out of compliance with the Franchise Agreement or any mandatory standard or procedure. The fee continues to be charged until the franchisee cures the applicable default.
The FDD specifies 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 agreement, the Daily Noncompliance Fee is $100, but this amount is subject to change at any time.
This means that if an Alloy franchisee fails to meet certain standards or violates the Franchise Agreement, they will be notified and given 24 hours to correct the issue. If the issue is not resolved within that time, Alloy can immediately begin charging the Daily Noncompliance Fee via ACH. This fee will continue to accrue daily until the franchisee rectifies the noncompliance. This policy underscores the importance of adhering to Alloy's standards and procedures to avoid incurring additional costs and potential termination of the franchise agreement.