Does the Alloy franchise agreement allow for exceptions to the local advertising group or cooperative membership?
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, franchisees are generally required to participate in local or regional advertising programs if Alloy designates such markets. Each Alloy facility, except for Special Sites, is a member of the local advertising group or cooperative within its designated market.
The FDD states that 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. The franchisee must contribute the amount Alloy designates, or the cooperative designates if a cooperative is established. Any amounts the franchisee contributes to a local or regional advertising group or cooperative will count toward the local marketing requirement.
This mandatory participation ensures consistent brand messaging and coordinated marketing efforts within specific geographic areas. However, the exception for "Special Sites" suggests that some locations may be exempt from this requirement, although the criteria for a "Special Site" are not detailed in this excerpt. Prospective franchisees should clarify with Alloy what constitutes a "Special Site" and whether their potential location might qualify for an exemption from mandatory advertising group participation.