Is an Alloy franchisee required to use only Alloy's 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 use Alloy's proprietary products, which must be purchased from Alloy, its affiliates, or designated suppliers. Alloy reserves the right to develop proprietary products manufactured to their specifications, emphasizing the importance of quality and uniformity within the Alloy system.
For other items that are not considered proprietary, Alloy franchisees must obtain supplies, materials, fixtures, furnishings, equipment, and other products from suppliers who meet Alloy's standards and specifications. If a franchisee wishes to use a product or supplier not already approved, they must submit a written request for approval. Alloy may inspect the supplier's facilities and test product samples, with the franchisee potentially reimbursing costs up to $5,000 per request. Alloy will notify the franchisee of the approval or disapproval within six months.
Alloy also has the right to collect and retain any allowances, rebates, credits, incentives, or benefits from suppliers based on the franchisee's purchases. Alloy may also establish strategic alliances or preferred vendor programs, potentially limiting the number of approved suppliers. This system ensures that Alloy maintains control over the quality and uniformity of products used within its franchise network, while also allowing for some flexibility in sourcing non-proprietary items, subject to Alloy's approval.