Is an Alloy franchisee required to purchase the computer system from an approved supplier designated by the franchisor?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
s Disclosure Document as Exhibit F. The Manual includes approximately 400 pages.
Computer System
You must purchase or lease the computer system, including the online software bundle that we designate, for your Facility. Our specific requirements for your computer system will be included in the Manual. We expect that the initial cost of your computer system will be between $ 4700-6900. Your computer system will provide you with the following functions: membership database, scheduling, sales tracking, reporting, credit card processing, payroll management, inventory management, and on-line appointment booking, lead management, the Alloy app and accounting/bookkeeping. We may require you to purchase the computer system from the approved supplier we designate. Your computer system will include a 2 Apple laptop computers, 2 Apple iPad tablets, Dell Micro 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 estimate that the current cost to subscribe to the required software bundle will be $220.00 per week.
We may, during the term of your Franchise Agreement, require you to update and/or upgrade your computer system.
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 purchase or lease a designated computer system, including an online software bundle, for their facility. The FDD indicates that Alloy may require franchisees to purchase the computer system from an approved supplier that Alloy designates.
The computer system's initial cost is estimated to be between $4,700 and $6,900. The computer system Alloy requires will provide functions such as membership database, scheduling, sales tracking, reporting, credit card processing, payroll management, inventory management, on-line appointment booking, lead management, the Alloy app and accounting/bookkeeping. The minimum requirements for the computer system include 2 Apple laptop computers, 2 Apple iPad tablets, Dell Micro Core for streaming, mouse, wireless keyboard, cables and mounting hardware.
Alloy recommends, but does not require, that franchisees have a maintenance contract for their computer system. Franchisees must have a high-speed internet connection for their computer system, and Alloy may designate the type of high-speed connection required. Alloy estimates that the current cost to subscribe to the required software bundle will be $220.00 per week. The estimated annual cost of maintenance, updating, upgrading or support contracts for the computer system can range from $600 to $1,200 per year.
Alloy may require franchisees to update and/or upgrade their computer system during the Franchise Agreement term. There are no contractual limitations on Alloy's access to a franchisee's data or on Alloy's right to request that franchisees obtain these updates and/or upgrades, nor are there any limitations on the cost of these updates and/or upgrades. Alloy or its affiliate will provide updates to the Alloy App, but neither Alloy nor its affiliates will provide franchisees with any maintenance, updates or upgrades for their computer system.