What is the estimated rent per square foot for an Alloy franchise location?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
is discussed in detail in Item 5.
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- Rent. You will need approximately 1,500-2,000 square feet of space for a Facility which will generally be located in a strip shopping center or free-standing location. The average Alloy studio is 1600 sq feet. If your space is larger, the cost to finish will also be higher. Our estimates assumes that you will not purchase real property for your Facility location, you will lease the premises for your Facility at between $17 - $65 per square foot and as part of your lease negotiation you and the landlord will agree that you will not begin to pay rent until at least the month that your Facility opens. Landlords may vary the base rental rate and charge rent based on a percentage of gross sales. In addition to base rent, your lease may require you to pay common area maintenance charges ("CAM Charges") for your pro rata share of the real estate taxes and insurance, and your pro rata share of other charges. The $65 per square foot rate includes CAM Charges, taxes and insurance. The actual amount you pay under the lease will vary depending on the size of the Facility, the types of charges that are allocated to tenants under the lease, your ability to negotiate with landlords and the prevailing rental rates in the geographic region. Location is a major factor in the amount of rent required. We recommend different membership pricing tiers when calculating rent factors to account for high rent districts in certain parts of the country. We are unable to estimate with any precision the costs of leasing or purchasing real estate because of the wide variation from region to region and between markets. If you choose to purchase real property on which to build your Facility, your initial investment will probably be higher than what we estimate above. If you purchase real property, we cannot estimate how this pur
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 rent for a facility ranges from $17 to $65 per square foot. Alloy anticipates franchisees will need approximately 1,500 to 2,000 square feet for a facility, with the average studio being around 1,600 square feet. The document specifies that these facilities are generally located in strip shopping centers or free-standing locations.
The FDD notes that the $65 per square foot rate includes Common Area Maintenance (CAM) charges, taxes, and insurance. CAM charges cover the franchisee's share of real estate taxes, insurance, and other charges. The actual lease amount can vary based on the facility size, the types of charges allocated to tenants, the franchisee's negotiation skills, and the prevailing rental rates in the area. Location is a significant factor in determining rent costs, and Alloy recommends different membership pricing tiers to account for high-rent districts.
Alloy does not provide precise estimates for leasing or purchasing real estate due to regional and market variations. The document assumes franchisees will lease the premises and negotiate with the landlord to defer rent payments until the facility opens. If a franchisee chooses to purchase real property, the initial investment will likely be higher than estimated. Franchisees should consider these factors and consult with real estate professionals to assess the specific rental costs in their target location.