What is the Alloy franchisee's responsibility to permit Alloy or its agents, during normal business hours, to remove a reasonable number of samples of products from their inventory or from the Franchised Business free of charge for testing?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must permit us or our agents, during normal business hours, to remove a reasonable number of samples of products from your inventory or from the Franchised Business free of charge for testing by us or by an independent laboratory to determine whether the samples meet our thencurrent standards and specifications. In addition to any other remedies we may have, we may require you to pay for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our 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 allow Alloy or its agents to take product samples from their inventory or franchised business during normal business hours without charge. These samples are used for testing to ensure they meet Alloy's standards.
If Alloy hasn't previously approved the supplier of the product or if the sample fails to meet Alloy's specifications, the franchisee may be required to cover the costs of the testing. This provision ensures that Alloy maintains control over the quality and consistency of products used and sold within its franchise system.
If a franchisee wishes to use a new supplier, they must seek approval from Alloy. Alloy can inspect the supplier's facilities and request samples for testing, with the franchisee potentially reimbursing Alloy for evaluation costs up to $5,000 per request. Alloy also reserves the right to implement proprietary products that franchisees must purchase exclusively from Alloy or its designated suppliers.