Can an Alloy franchisee keep a copy of the customer database after the Franchise Agreement expires or is terminated?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ction for your computer system, and we may designate the type of high-speed connection you must have. We will have independent access to the data stored through your CRM account, and we will have the ability to download information relating to the Franchised Business, including your client database and sales information through the CRM software. We may, in our discretion, have separate independent access to your computer system. Because we own the relationship with the CRM software and provide you access to the software, your customer database will be our property and you may not keep a copy of the customer database after your Franchise Agreement expires or is terminated. We
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the customer database is the property of Alloy, not the franchisee. Alloy maintains independent access to the data stored in the CRM account, including the client database and sales information. This access allows Alloy to download information related to the franchised business.
Because Alloy owns the relationship with the CRM software and provides access to it, franchisees are explicitly prohibited from retaining a copy of the customer database once the Franchise Agreement expires or is terminated. This means that upon termination or expiration, the franchisee loses access to all customer data accumulated during the franchise term.
This policy is important for prospective franchisees to understand, as the customer database is often a valuable asset for a business. The inability to retain this data after the agreement ends could significantly impact the franchisee's ability to continue operating a similar business independently. The FDD also mentions that the current cost to subscribe to the required software bundle is estimated to be $220.00 per week, which franchisees must factor into their operating expenses.