What factors might cause changes in the amounts of fees for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as specifically stated above, the amounts given may be due to changes in market conditions, our cost of providing services and future policy changes.
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- The Daily Noncompliance Fee is currently $100 per day that you remain out of compliance with the Franchise Agreement or any mandatory standard or procedure. The Daily Noncompliance Fee is payable via ACH immediately upon 24 hours' notice, and we reserve the right to continue charging it until you cure any applicable default. The Daily Fee is in addition to, and not in lieu of, any rights we have under the Franchise Agreement (including termination as set forth in the Franchise Agreement) and is subject to change at any time.
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, several factors can influence changes in the amounts of fees franchisees pay. Alloy states that fees are generally uniformly imposed, but the amounts may change due to market conditions, the cost of providing services, and future policy changes. This means that while the fees are the same for all franchisees at a given time, Alloy reserves the right to adjust them based on economic factors and its own business decisions.
Several specific fees are subject to change. The "Daily Noncompliance Fee" is currently $100 per day for each day a franchisee is out of compliance, but Alloy explicitly reserves the right to change this amount at any time. Additionally, the initial fee and continuing maintenance fee for proprietary software that Alloy may develop are "to be determined," indicating these could vary.
Prospective Alloy franchisees should be aware that while some fees are fixed, others can fluctuate based on factors outside of their direct control. It is important to factor in potential fee increases when projecting expenses and to discuss with Alloy the specific circumstances under which fees might be adjusted. Understanding these potential changes is crucial for managing the financial aspects of the franchise.