What is the estimated cost range for Leasehold Improvements for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Leasehold | $95,240- | As arranged | As arranged | Contractor |
| Improvements (5) | $180,270 |
This range assumes you are renting a second generation space.
This range also expects and assumes that you and your business advisors will negotiate with the landlord of your Facility premises to get a tenant improvement allowance or credit ("TI") that is consistent with industry statistics and experience with general contractors and similar providers for this kind of buildout.
Construction costs and TI allowances/credits can vary significantly from market to market and among local vendors (during 2024 franchisees received TI credits ranging from $0-$188,000) and also depend on factors such as the condition of the premises, the financial condition of the tenant, and the length of the term of the lease.
Our estimate assumes your landlord provides adequate cooling, water and heating infrastructure, and includes some materials such as paint, trim, plumbing, electrical and flooring, labor costs and installation of certain features, including flooring and lighting.
Our estimate may vary from your actual costs, depending on the location, size, and condition of your Facility.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–25)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the estimated initial investment for leasehold improvements ranges from $95,240 to $180,270. These costs are payable to a contractor and are arranged between the franchisee and the contractor. This estimate assumes that the franchisee is renting a second-generation space and that the landlord will provide a tenant improvement allowance or credit consistent with industry standards.
Construction costs and tenant improvement allowances can vary significantly based on market conditions and the specific vendors used. During 2024, franchisees received tenant improvement credits ranging from $0 to $188,000. The actual costs will depend on factors such as the condition of the premises, the financial stability of the tenant, and the lease term. Alloy's estimate assumes that the landlord will provide adequate cooling, water, and heating infrastructure. It also includes materials like paint, trim, plumbing, electrical, and flooring, as well as labor costs and the installation of flooring and lighting.
The FDD notes that the actual costs may differ based on the facility's location, size, and condition. Franchisees should consider these factors and negotiate tenant improvement allowances with the landlord to mitigate potential expenses. It is important to note that the figures provided are estimates, and franchisees should conduct thorough due diligence to determine the actual costs for their specific location.