Are Alloy facilities operated by the franchisor or its affiliates members of local advertising groups or cooperatives?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Groups/Cooperatives.
We have the right to designate local or regional advertising markets and if designated, you must participate in and contribute to any group or cooperative advertising and marketing programs in your designated local or regional market.
If established, you must contribute to the amount we designate (or the cooperative designates if a cooperative is established).
Each ALLOY facility, including those operated by us or our affiliates within a designated local or regional advertising market (except Special Sites) is a member of the local advertising group or cooperative.
We will establish any rules or requirements of any local or regional advertising market (whether in the form of a group or cooperative.
Any amounts you
contribute to a local or regional advertising group or cooperative will count toward your local marketing requirement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, each Alloy facility, including those operated by Alloy or its affiliates within a designated local or regional advertising market (except for Special Sites), is a member of the local advertising group or cooperative. Alloy retains the right to designate local or regional advertising markets, and if designated, franchisees must participate in and contribute to any group or cooperative advertising and marketing programs in their designated market.
If a local advertising group or cooperative is established, franchisees must contribute the amount designated by Alloy or the cooperative. Any amounts contributed to a local or regional advertising group or cooperative will count toward the franchisee's local marketing requirement. This means that franchisees will need to budget for these advertising contributions as part of their ongoing marketing expenses.
This requirement ensures that all Alloy facilities, including those run by the franchisor and its affiliates, participate in coordinated advertising efforts. This can help to create a consistent brand image and increase brand awareness in local markets. Franchisees should inquire about the typical contribution amounts and the rules governing these advertising groups or cooperatives to fully understand their financial obligations and how these groups operate.