What expenses are the franchisee responsible for covering while attending the initial 4-day Alloy training program?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Approximately 90 days before your Franchised Business is scheduled to open, we will provide a mandatory series of virtual training sessions and a mandatory 4-day in person training program in the operation of your Franchised Business for up to three trainees, including you or your Operating Partner, your General Manager/Head Trainer, and one Trainer. All franchisees and their Operating Partners must attend and satisfactorily complete our training programs. If you wish to send additional trainees to our initial 4-day training program, you must pay our then-current training fee. The cost of providing our initial 4-day training program to the first three trainees (including you) is included in the initial franchise fee, but you must pay all expenses you and your trainees incur while attending our initial 4-day training program, including travel, lodging, meals and applicable wages. We may provide our training program to multiple franchisees and their trainees at the same session.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, while the initial franchise fee covers the cost of the initial 4-day training program for up to three trainees, including the franchisee, the franchisee is responsible for covering certain expenses. These expenses include travel, lodging, meals, and applicable wages for themselves and their trainees while attending the training. This mandatory training is held in person and lasts for four days.
This means that a prospective Alloy franchisee needs to budget not only for the franchise fee and other startup costs but also for the travel-related expenses of attending the initial training. These costs can vary significantly depending on the distance to the training location in Roswell, Georgia, the choice of accommodation, and the number of employees attending the training. Franchisees should also factor in the cost of meals and any wages paid to employees while they are away from the business for training.
It is common practice in the franchise industry for the franchisor to cover the cost of the training itself, but for the franchisee to bear the costs associated with travel and accommodation. This arrangement ensures that the franchisee has a vested interest in attending the training and that the franchisor can focus on delivering the training program effectively. Franchisees should carefully consider these costs when evaluating the overall investment required to start an Alloy franchise.