conditional

How does the Alloy development fee change if I develop more than the minimum of two facilities?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Development Fee. The development fee is discussed in Item 5. Our estimate assumes you will develop the minimum of two Facilities. If you choose to develop more than two Facilities, the development fee will increase as set forth in Item 5.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–25)

What This Means (2025 FDD)

According to Alloy's 2025 Franchise Disclosure Document, the development fee for an area developer covers the minimum of two facilities. The FDD indicates that if a developer chooses to develop more than two Alloy facilities, the development fee will increase. The specific amount of this increase is detailed in Item 5 of the FDD.

For a prospective Alloy area developer, this means that the initial investment will be higher if they commit to developing more than the minimum number of facilities. Item 7 provides an estimated initial investment for developing two facilities, including a development fee of $110,000. However, this figure will not be accurate for those planning a larger development.

Therefore, it is crucial for potential area developers to carefully review Item 5 of the FDD to understand the exact fee structure for additional facilities beyond the initial two. This will allow for a more accurate assessment of the total investment required and help in making an informed decision about the scope of their development plans with Alloy.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.