What is the Alloy franchisee's responsibility to obtain all supplies, materials, fixtures, furnishings, equipment (including computer hardware and software), and other products used or offered for sale at the Facility solely from suppliers who demonstrate, to Alloy's continuing reasonable satisfaction, the ability to meet Alloy's then-current standards or in accordance with Alloy's standards and specifications?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain all supplies, materials, fixtures, furnishings, equipment (including computer hardware and software), and other products used or offered for sale at the Facility solely from suppliers who demonstrate, to our continuing reasonable satisfaction, the ability to meet our then-current standards or in accordance with our standards and specifications.
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 must source all supplies, materials, fixtures, furnishings, equipment (including computer hardware and software), and other products used or offered for sale at their Alloy facility exclusively from suppliers who demonstrate the ability to meet Alloy's standards. These standards are determined to Alloy's satisfaction and must align with Alloy's current standards and specifications.
Alloy retains the right to designate a primary or single source of supply for certain required items, potentially including themselves or an affiliate. Currently, Alloy has required vendors for equipment, online POS systems, related technology services, and printed marketing and promotional materials. While a list of preferred vendors is available for other items, franchisees can use alternative vendors if their products or services meet Alloy's standards. Franchisees must maintain sufficient supplies of products purchased from designated or approved suppliers and ensure that all items conform to Alloy's standards and specifications.
To use an unapproved supplier, the franchisee must submit a written request for approval, or request the supplier to do so. Alloy may inspect the supplier's facilities and test samples, with the franchisee responsible for reimbursing evaluation costs up to $5,000 per request. Alloy will notify the franchisee of approval or disapproval within six months after completing the inspection and evaluation process. Alloy also reserves the right to collect and retain allowances, rebates, credits, incentives, or benefits from suppliers based on franchisee purchases.
Alloy may establish strategic alliances or preferred vendor programs, potentially limiting the number of approved suppliers or designating mandatory sources for certain products, equipment, and services. Alloy can also refuse to approve new suppliers if it believes doing so would not be in the best interests of the Alloy system. Franchisees are prohibited from entering agreements with health club aggregators, multi-partner membership programs, or discount websites without prior written consent from Alloy.