Are Alloy facilities owned by the franchisor and its affiliates required to contribute to the Brand Development Fund?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us a monthly Brand Development Fee equal to 2% of Gross Sales to be contributed to the Brand Development Fund ("Fund") for marketing, promotion brand development programs to promote the Alloy System. Facilities owned by us and our affiliates will contribute to the Fund on the same basis as franchisees. We have the right to establish and administer the Fund. As stated in Item 8, we may contribute Allowances we receive from approved suppliers to the Fund. If we choose to do this, it does not reduce or eliminate your obligation to
pay the Brand Development Fee.
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, Alloy facilities owned by the franchisor and its affiliates are required to contribute to the Brand Development Fund. These facilities contribute on the same basis as franchisees.
The Brand Development Fund is used for marketing, promotion, and brand development programs to promote the Alloy system. Franchisees must pay a monthly Brand Development Fee equal to 2% of Gross Sales, which is contributed to the fund.
Alloy retains the right to administer the fund and determine how it will be spent, with the goal of maximizing public recognition of the Alloy brand. The franchisor may also contribute allowances received from approved suppliers to the fund, but this does not reduce the franchisee's obligation to pay the Brand Development Fee. This ensures that both franchisor-owned and franchisee-owned facilities contribute to the fund, supporting the overall marketing and promotion efforts of the Alloy system.