From whom must an Alloy franchisee purchase proprietary products?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to develop proprietary products that are manufactured according to our specifications. Because of the importance of quality and uniformity of production and the significance of those products in the System, it is to your and our benefit that we closely control the production and distribution of those products. Therefore, you will use only our proprietary products and will purchase those items only from us, our affiliate or from the supplier we designate.
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 are required to purchase proprietary products exclusively from Alloy, its affiliates, or a designated supplier. This requirement ensures quality control and uniformity within the Alloy system, as the franchisor believes that closely controlling the production and distribution of these products benefits both the franchisee and the franchisor.
This mandate means that franchisees cannot source these specific products from alternative suppliers, even if they find similar items at a lower cost. While this restriction might limit a franchisee's flexibility in purchasing decisions, it aims to maintain consistent standards across all Alloy locations.
It is important for prospective franchisees to understand which products are considered proprietary and to factor in the potential costs associated with purchasing these items directly from Alloy or its designated suppliers. This information would typically be found in the Alloy manual, which also contains a list of approved products and suppliers that is subject to change.