For an Alloy franchise, what is the minimum annual gross sales required for the first year of operation?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
e minimum annual Gross Sales for that year. The required minimum annual Gross Sales for the first year of operation from the first day you open the Facility for business is $240,000. The second year will be the 12 month period beginning with your first anniversary date from the opening of the facility (this 12 month period is referred to as Year 2). The minimum annual Gross Sales for Year 2 and for each following year through the end of the initial
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the minimum annual gross sales required for the first year of operation is $240,000. This benchmark applies from the first day the Alloy facility opens for business. For the second year, the minimum annual gross sales increases to $300,000, and this higher target remains in effect for each subsequent year throughout the initial term of the Franchise Agreement.
Failure to meet the minimum annual gross sales target has consequences for Alloy franchisees. The first time a franchisee fails to achieve the minimum, they will receive additional on-site training and assistance from Alloy representatives, but at the franchisee's expense, including per diem fees and reimbursement of the representative's expenses. If the franchisee fails to meet the minimum a second time, Alloy may again require additional on-site training and assistance. A third failure can result in the termination of the Franchise Agreement without an opportunity to correct the default.
In addition to potential training expenses or termination, Alloy franchisees who fail to meet the minimum annual gross sales must also compensate Alloy for any shortfall in royalty fees. This shortfall is calculated as 7% of the difference between the franchisee's actual gross sales for the year and the required minimum annual gross sales. This financial penalty adds further pressure to meet the sales targets.
Alloy retains the right to reduce the minimum annual gross sales requirement for a franchisee based on individual circumstances, but is not obligated to offer similar modifications to other franchisees. This discretionary power means that some franchisees might face less stringent targets, while others must adhere to the standard $240,000 and $300,000 thresholds. Prospective franchisees should carefully consider these minimum sales requirements and the associated penalties and support costs when evaluating the Alloy franchise opportunity.