Are all Alloy facilities required to participate in local advertising groups, and what is the exception?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if Alloy designates local or regional advertising markets, franchisees must participate in and contribute to any group or cooperative advertising and marketing programs within their designated market. Generally, each Alloy facility is a member of the local advertising group or cooperative. However, Alloy facilities that are considered "Special Sites" are an exception to this rule. Special Sites include locations such as military bases, public transportation facilities, business or industry locations, sports facilities, student unions, malls, and community events.
This means that if a franchisee's Alloy facility is not classified as a Special Site and is located within a designated advertising market, they are obligated to participate in local advertising initiatives. The amount each franchisee must contribute will be determined either by Alloy or by the cooperative itself if one is established. These contributions count toward the franchisee's local marketing requirements.
For prospective Alloy franchisees, it's important to determine whether their intended location falls under the definition of a Special Site, as this will affect their advertising obligations. Understanding the rules and requirements of any local or regional advertising market is also crucial for budgeting and marketing strategy. Franchisees should also clarify with Alloy how these advertising groups are managed and how funds are allocated to ensure effective local marketing efforts.