Is an Alloy franchisee required to have a high-speed internet connection for the computer system?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Core for streaming, mouse, wireless keyboard, cables and mounting hardware, as a minimum requirement.
We recommend, but do not require, that you have a maintenance contract for your computer system. You must at all times have a high-speed internet connection 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, franchisees must maintain a high-speed internet connection for their computer systems. Alloy retains the right to designate the specific type of high-speed connection required. This connectivity is essential for accessing and utilizing the CRM (Customer Relationship Management) software, which Alloy uses to manage franchisee data. Alloy has independent access to the data stored in the CRM, including the franchisee's client database and sales information, and can download this information.
This requirement ensures that Alloy franchisees can effectively use the designated computer system and software, which includes functions such as membership database management, scheduling, sales tracking, and online appointment booking. The initial cost of the computer system is estimated to be between $4,700 and $6,900. Additionally, franchisees can expect to pay approximately $220 per week for the required software bundle. The franchisor may also require updates or upgrades to the computer system during the franchise term, and the costs for these updates are not limited.
Alloy's ownership of the CRM relationship and access to franchisee data has important implications. Because Alloy owns the relationship with the CRM software and provides access to the software, the customer database is Alloy's property, and franchisees cannot retain a copy of the database after the Franchise Agreement expires or is terminated. This is a common practice in franchising, where the franchisor seeks to maintain control over customer data and brand consistency. The estimated annual cost of maintenance, updating, upgrading, or support contracts for the computer system can range from $600 to $1,200 per year.