Does the Alloy franchise agreement state that the Alloy App is proprietary?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Owner(s) are identified on the Data Sheet. Every time there is a change in the persons who are your Owners, you must, within 10 days from the date of each change, update the Data Sheet. As used in this Agreement, any reference to Owner includes all Owners.
- D. "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.
- E.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Alloy App is indeed considered proprietary. The franchise agreement defines the "System" as encompassing various elements, including specific equipment, methods, standards, procedures, training, and promotional programs, along with other proprietary information. This System is identified by Alloy's trademarks and includes the Alloy App. The Alloy App provides franchisees with tools to manage and communicate with coaches and clients through personal profiles.
Furthermore, the FDD states that franchisees must purchase a proprietary software application system that complies with Alloy's standards, including all future updates and modifications, referred to as the "Alloy App." Franchisees are required to sign any related agreements. The Alloy App serves as a tool for franchisees in operating their facilities, enabling them to build video-driven programs, send messages, and track client results.
While franchisees are required to use the Alloy App, the franchise agreement clarifies that all rights, title, and interest in the software remain with the licensor. Franchisees are prohibited from using or downloading any unauthorized software and are liable for damages caused by such unauthorized software. Alloy retains full access to the information and data entered and produced by the POS System. This highlights the importance of adhering to Alloy's technology standards and using only authorized software to avoid potential liabilities and maintain system integrity.