What is the Alloy franchisee's responsibility to construct and equip their Franchised Business?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES*
In order to ensure a uniform image and uniform quality of services and products throughout the Alloy system, you must maintain and comply with our quality standards. Although you are not required to purchase or lease real estate from us or our affiliates, we must accept the location of your Alloy Facility (see Item 11). You must construct and equip your Franchised Business in accordance with our then current approved design, specifications and standards. In addition, it is your responsibility to ensure that your building plans comply with the Americans with Disabilities Act and all other federal, state and local laws.
We reserve the right to designate a primary or single source of supply for certain required items, and we or an affiliate may be that single source. We have required vendors for equipment, our online POS and related technology services and printed marketing and promotional materials. We also reserve the right to require you to use a designated accountant or bookkeeping service if you do not provide required financial reports and statements when they are due, or your financial reports and statements are not accurate. For other items, we have a list of preferred vendors for your consideration, although you may use another vendor provided the vendor's product or service meets our specifications or standards.
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 responsible for the construction and equipping of their franchised business. Alloy requires franchisees to construct and equip their facilities according to the brand's approved design, specifications, and standards. Alloy must also approve the location of the Alloy facility.
Furthermore, franchisees must ensure that their building plans adhere to the Americans with Disabilities Act, as well as all other applicable federal, state, and local laws. This means franchisees need to be proactive in understanding and complying with legal requirements during the construction phase.
Alloy also has specific requirements regarding suppliers. Franchisees must source supplies, materials, fixtures, furnishings, and equipment from suppliers that meet Alloy's standards. For certain items, Alloy may designate a single source of supply, potentially including Alloy or its affiliates. While franchisees can propose alternative vendors, Alloy reserves the right to inspect the supplier's facilities and test their products, with the franchisee bearing the evaluation costs up to $5,000 per request. Alloy estimates that purchases from approved suppliers or those conforming to their specifications will constitute 50%-60% of the initial investment and 20%-30% of ongoing operational purchases.