factual

What is the form of computation certification that Alloy specifies for amounts due?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

r amounts that we may require on a monthly basis, with the required local marketing requirements not to exceed 8% of Gross Sales (you must spend at least 2% on local marketing; we suggest you spend a minimum of 5%). Upon our request, you must provide us with itemization and proof of marketing and an accounting of the monies that you have spent for approved grand opening advertising. If you fail to make the required expenditure, we have the right to collect and contribute the deficiency to the Brand Development Fund.

  • C. Approved Materials. You must use only such marketing materials (including any print, radio, television, electronic, or other media forms that may become available in the future) as we furnish, approve or make available, and the materials must be used only in a manner that we prescribe. Furthermore, any promotional activities you conduct in the Facility or on its premises are subject to our approval. You must submit all advertising and promotional materials to us prior to your use. If we do not respond within 14 days after you submit the proposed advertising materials to us, the advertising materials will be deemed not approved. We will not unreasonably withhold approval of any sales promotion materials or media and activities; provided that they are current, in good condition, in good taste and accurately depict the Trademarks.
  • D. Advertising Groups/Cooperatives.

Source: Item 23 — RECEIPTS (FDD pages 69–245)

What This Means (2025 FDD)

Based on the 2025 Alloy FDD, when Alloy requests it, a franchisee must provide itemization and proof of marketing, along with an accounting of the monies spent for approved grand opening advertising. If the franchisee fails to make the required expenditure, Alloy has the right to collect the deficiency and contribute it to the Brand Development Fund.

Alloy franchisees must use only the marketing materials that Alloy furnishes, approves, or makes available, and these materials must be used only in the manner that Alloy prescribes. Franchisees must submit all advertising and promotional materials to Alloy before use. If Alloy does not respond within 14 days after the franchisee submits the proposed advertising materials, the advertising materials will be deemed not approved.

Alloy has the right to designate local or regional advertising markets, and if designated, franchisees must participate in and contribute to any group or cooperative advertising and marketing programs in their designated local or regional market. If established, franchisees must contribute the amount Alloy designates, or the cooperative designates if a cooperative is established. Any amounts franchisees contribute to a local or regional advertising group or cooperative will count toward their local marketing requirement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.