Does the Alloy franchise agreement require the franchisee to use specific equipment as part of the System?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
E. "System" means the ALLOY System, which consists of specific equipment, fixtures, furnishings, materials and supplies; methods, uniform standards, specifications and procedures for operations; procedures for management; training and assistance; and merchandising, advertising and promotional programs and other proprietary information, all of which we may change, improve and further develop. The System is identified by the Trademarks. The System includes a proprietary software application (the "Alloy App"). The Alloy App will provide a franchisee with tools to manage and communicate with coaches and clients through a personal profile.
C. You must construct and equip each Facility in strict accordance with our thencurrent approved specifications and standards pertaining to equipment, inventory, signage, fixtures, design and layout of the building.
D. Alloy App. You must purchase a proprietary software application system that complies with our standards and requirements, including all future updates, supplements and modifications (the "Alloy App") and sign any related agreements that we require. The Alloy App is a tool for you to use in the operation of your Facility and not as a means for us to exercise control over the day-to-day operation of your Facility. The Alloy App and other future software and hardware that you are required to use in the operation of the Facility may include designated software used to manage and communicate with your coaches and clients through the personal profile you build. Through the Alloy App, you will be able to build specific, video driven programs for your clients, send messages to your clients, and track each client's results.
The required software and hardware may include a credit card processing system and/or gift card processing system we designate. It is your responsibility to make sure that you are in compliance with all laws that are applicable to the POS System or other technology used in the operation of your Facility, including all data protection or security laws as well as PCI compliance. You may be required to license the proprietary software from us, an affiliate or a third party and you also may be required to pay a software licensing or user fee in connection with your use of the proprietary software. All right, title and interest in the software will remain with the licensor of the software. You shall not use or download any software on your computer unless it has been authorized by us in writing. In the event that you use or download any unauthorized software, you shall be liable for all damages and problems caused by the unauthorized software in addition to the other remedies provided under this Agreement. You acknowledge and agree that we will have full and complete access to the information and data entered and produced by the POS System. You must, at all times, have at the Facility Internet access with a form of high speed connection as we require and
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Alloy System involves specific equipment. The Alloy System consists of specific equipment, fixtures, furnishings, materials, and supplies, as well as methods, standards, and procedures for operations.
As a franchisee, you must construct and equip each Alloy facility in strict accordance with Alloy's current approved specifications and standards for equipment, inventory, signage, fixtures, design, and building layout. Alloy also requires franchisees to purchase a proprietary software application system, the Alloy App, that complies with Alloy's standards and requirements, including all future updates, supplements, and modifications. The required software and hardware may include a designated credit card processing system and/or gift card processing system.
These requirements ensure uniformity and consistency across all Alloy franchise locations, which helps maintain brand standards and customer expectations. However, franchisees should be aware that they must adhere to Alloy's specifications when purchasing equipment and technology, which may limit their choices and potentially increase costs. Franchisees are responsible for complying with all laws applicable to the POS system or other technology used, including data protection, security laws, and PCI compliance.
Alloy retains the right to modify and change the System, Trademarks, and trade dress, meaning that franchisees must stay updated with any changes to required equipment, software, or operational procedures. Additionally, Alloy will have full access to the information and data entered and produced by the POS System. Franchisees must also maintain internet access with a high-speed connection at the Facility.