What is the Alloy franchisee's obligation regarding the delivery of samples from the supplier for evaluation and testing?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for any products, supplies or materials for which we designate a single approved supplier, if you wish to purchase products, supplies, materials or equipment from suppliers not approved by us, you must submit to us a written request to approve the proposed supplier, together with any background documents or evidence we may require. We will have the right to require you to obtain permission from the supplier to allow our representatives to inspect the supplier's facilities and that you deliver samples from the supplier for evaluation and testing to us or to an independent testing facility that we designate. We may charge you an evaluation fee to conduct our evaluation and testing. We will, within 30 days after our receipt of your evaluation request, notify you in writing of our approval or disapproval of your proposed supplier. We may revoke our approval of particular products, equipment or suppliers when we determine that such products, equipment or suppliers no longer meet our standards. Upon receipt of our revocation of approval, you must cease to use or sell any disapproved products and cease to purchase form any disapproved supplier.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase products, supplies, materials, or equipment from suppliers not already approved by Alloy, they must first submit a written request for approval. As part of this process, Alloy has the right to require the franchisee to obtain permission from the proposed supplier for Alloy's representatives to inspect the supplier's facilities.
Furthermore, Alloy can mandate that the franchisee provide samples from the unapproved supplier. These samples are for evaluation and testing, which Alloy may conduct themselves or through an independent testing facility that they designate. The franchisee is responsible for delivering these samples as directed by Alloy.
Alloy may also charge the franchisee an evaluation fee to cover the costs of conducting the evaluation and testing of the proposed supplier's products. Alloy will then notify the franchisee in writing of their approval or disapproval of the proposed supplier within 30 days of receiving the evaluation request. Alloy retains the right to revoke approval of particular products, equipment, or suppliers if they no longer meet Alloy's standards. If approval is revoked, the franchisee must immediately stop using or selling any disapproved products and cease purchasing from any disapproved supplier.