For the Alloy financial performance representation, what is included in Part B?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
n this Item 19, for example, by providing information about performance at a particular location or under particular circumstances.
This financial performance representation discloses historical information regarding the 2024 Measurement Period (January 2024-December 2024) for (i) Part A - the average monthly revenue, monthly membership, revenue per member and actual monthly retention percentage for one Affiliate Operating Facility and 28 Franchisee Facilities open for the entire 2024 Measurement Period, (ii) Part B – monthly membership pricing and member attendance for one Affiliate Operating Facility and 28 Franchisee Facilities open for the entire 2024 Measurement Period and (iii) Part C – monthly revenue for 41 Franchisee Facilities that opened in 2024 but were not open for the entire 2024 Measurement Period.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 57–62)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Part B of the financial performance representation includes monthly membership pricing and member attendance. This data is based on one affiliate operating facility and 28 franchisee facilities that were open for the entire 2024 measurement period, which spans from January 2024 to December 2024. This information is intended to provide prospective franchisees with insights into the pricing structure and customer engagement levels at existing Alloy locations.
Specifically, Part B contains two sections: Alloy Pricing Tiers and Membership by Type. The pricing tiers show different membership costs, while the membership by type shows the breakdown of members by visit frequency. This information can help potential franchisees understand the different revenue streams and customer preferences within the Alloy franchise system.
It is important to note that the pricing tiers a franchisee selects are often based on factors such as market rent. Alloy states they will work with a franchisee to select the appropriate tier. Tier 1 is reserved for more rural markets and similar circumstances. This suggests that pricing strategies can be adapted to suit local market conditions, which could impact revenue and profitability. Prospective franchisees should discuss these factors with Alloy to understand how pricing decisions are made and what impact they may have on their specific location.