What must an Alloy franchisee do if they want to purchase from an unapproved supplier?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
or if the sample fails to conform to our specifications.
Except for those items where we have approved a sole supplier, if you wish to purchase, lease or use any products or other items, or you wish to purchase from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered either to us or to an independent laboratory for testing. We reserve the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current
standards. Our supplier approval procedure does not obligate us to approve any particular supplier, and in certain circumstances we may designated a supplier as a sole supplier or one of two or three approved suppliers. We will notify you within six months after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier. We are not required to make available to you or to any supplier the criteria for product or supplier approval that we deem confidential. You must reimburse all costs we incur related to evaluating a product or supplier that you propose, up to a maximum of $5,000 per request. We may also revoke approval of a particular product or supplier. If we notify you in writing that our approval has been revoked, you must stop purchasi
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must adhere to specific procedures when seeking to purchase from suppliers not already approved by Alloy. Except for items where Alloy has designated a sole supplier, a franchisee must submit a written request for approval, or ensure the unapproved supplier does so. Alloy mandates written approval before any purchases are made from the new supplier.
Alloy has the right to inspect the supplier's facilities and demand samples for testing, either by Alloy or an independent laboratory. Alloy also retains the right to re-inspect approved suppliers and revoke approval if they fail to meet current standards. Alloy will notify the franchisee of approval or disapproval within six months of completing the inspection and evaluation process. However, Alloy is not obligated to disclose the criteria for product or supplier approval if deemed confidential.
It's important to note that the franchisee is responsible for reimbursing Alloy's costs for evaluating the proposed supplier or product, up to a maximum of $5,000 per request. Alloy also reserves the right to revoke approval of a supplier or product, and franchisees must cease purchasing from that supplier or using that product upon written notification. This process ensures that Alloy maintains quality control and uniformity across its franchise system, but it also places the onus on the franchisee to manage supplier relationships and bear the costs of seeking approval for new suppliers.