What are the financial qualifications Alloy requires of a potential franchisee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
site). We may conduct on-site evaluations, as we deem advisable, as part of our evaluation of the site for the Facility. We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct. - 3. Your Submission of Information. You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.
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- Your Compliance with Our Then-Current Standards for Franchisees. You must receive written confirmation from us that you meet our then-current standards for franchisees, including financial capability criteria for the development of a new Facility.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must meet the franchisor's standards for financial capability to develop a new facility. Specifically, at least 60 days before executing the Franchise Agreement or the date outlined in the Development Schedule, the prospective franchisee must provide Alloy with a franchise application, financial statements, and other information. This information should cover the franchisee's background, any other facilities they operate, and details regarding the proposed facility, including investment and financing plans.
Alloy requires this information to ensure franchisees can properly develop and operate their facilities, which helps maintain the brand's reputation and goodwill. However, Alloy emphasizes that their confirmation of meeting these standards does not guarantee the franchisee's success.
In essence, Alloy assesses a franchisee's financial capability based on the information provided in the application and financial statements. While the FDD does not specify exact figures for net worth or liquid assets, it is clear that Alloy needs to be confident in the franchisee's ability to fund and sustain the new Alloy Personal Training location. A prospective franchisee should discuss the specific financial criteria Alloy uses to evaluate potential franchisees.