What is the Alloy franchisee's responsibility to submit a written request for approval, or must request the supplier to do so, if they wish to purchase, lease or use any products or other items, or they wish to purchase from an unapproved supplier?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
or if the sample fails to conform to our specifications.
Except for those items where we have approved a sole supplier, if you wish to purchase, lease or use any products or other items, or you wish to purchase from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered either to us or to an independent laboratory for testing. We reserve the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current
standards. Our supplier approval procedure does not obligate us to approve any particular supplier, and in certain circumstances we may designated a supplier as a sole supplier or one of two or three approved suppliers. We will notify you within six months after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier. We are not required to make available to you or to any supplier the criteria for product or supplier approval that we deem confidential. You must reimburse all costs we incur related to evaluating a product or supplier that you propose, up to a maximum of $5,000 per request. We may also revoke approval of a particular product or supplier. If we notify you in writing that our approval has been revoked, you must stop purchasi
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, if a franchisee wishes to purchase, lease, or use any products or other items from an unapproved supplier, they must take specific steps to seek approval. The franchisee is required to submit a written request for approval to Alloy. Alternatively, the franchisee can request that the supplier submit the written request for approval on their behalf.
Alloy requires written approval of any product or supplier before a franchisee can make purchases. Alloy may also require that its representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered either to Alloy or to an independent laboratory for testing. Alloy retains the right to re-inspect the facilities and products of any approved supplier and to revoke approval if the supplier fails to continue to meet Alloy's standards.
Alloy will notify the franchisee of the approval or disapproval of any proposed supplier within six months after completing the inspection and evaluation process. Alloy is not required to disclose the criteria for product or supplier approval that it deems confidential. The franchisee must reimburse Alloy for all costs related to evaluating a proposed product or supplier, up to a maximum of $5,000 per request. If Alloy revokes approval of a particular product or supplier, the franchisee must stop purchasing that product or from that supplier upon written notification.
This process ensures that Alloy franchisees maintain a consistent standard of quality and uniformity across all locations. It also gives Alloy control over its supply chain and the ability to protect its brand reputation. Franchisees should be aware of these requirements and factor in the time and potential costs associated with seeking approval for new products or suppliers.