For Alloy franchises, what is the requirement for a general manager or replacement manager regarding training?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions and conditions control with respect to personnel, training and supervision:
- A. Supervision. During the term of this Agreement, you (if Franchisee is an individual), or your Operating Partner (if Franchisee is a legal entity), or your Facility's general manager must devote full time and best efforts to the management and operation of your Facility and provide direct, on-site supervision of the Facility. Any general manager or replacement manager(s) you hire must complete our training as described in subparagraphs 7.B – 7.E. Any general manager(s) or replacement manager(s) you hire must meet the applicable training requirements. The use of a general manager in no way relieves you of your obligations to comply with this Agreement and to ensure that the Facility is properly operated.
- B. Training. You must comply with all of the training requirements we prescribe for the Facility to be developed under this Agreement. You (or if Franchisee is a legal entity, one of your Operating Partner) must complete our initial training program to our satisfaction prior to opening your Facility. It then is solely your responsibility to ensure that your employees are properly trained.
We will provide the initial training program to a maximum of three people without charging you a fee. You, however, are responsible for paying all costs and expenses, including salaries, hotel
and transportation costs, for all persons to attend our training program. You may send more than three people to our initial training program, but we reserve the right to charge you our then-current additional training fee each additional person who attends our initial training program. You will be responsible for paying all costs and other daily expenses for any additional person who attends our initial training program.
In the event you are given notice of default as set forth in subparagraphs 13.A and B, and the default relates, in whole or in part, to your failure to meet any operational standards, we have the right to require as a condition of curing the default that you and your manager, at your expense, comply with the additional training requirements we prescribe. Any new manager you hire must comply with our training requirements within a reasonable time as we specify. Under no circumstances may you permit the management of the Facility's operation on a regular basis by a person who has not successfully completed to our reasonable satisfaction all applicable training we require.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee hires a general manager or replacement manager for their Alloy facility, that manager must complete Alloy's training program. The specific details of this training are described in subparagraphs 7.B through 7.E of the franchise agreement, although those subparagraphs are not included in the provided documentation.
The FDD states that the franchisee, or their Operating Partner if the franchisee is a legal entity, must complete Alloy's initial training program to Alloy's satisfaction before opening the facility. After that, it is the franchisee's responsibility to ensure all employees are properly trained. Alloy provides initial training to a maximum of three people without charging a fee; however, the franchisee is responsible for all costs and expenses, including salaries, hotel, and transportation costs, for all attendees. Alloy reserves the right to charge a training fee for each additional person beyond the initial three.
Furthermore, if a franchisee receives a notice of default for failing to meet operational standards, Alloy can require the franchisee and their manager to comply with additional training requirements at the franchisee's expense as a condition of curing the default. Any new manager hired must comply with Alloy's training requirements within a reasonable time frame specified by Alloy. Under no circumstances can a franchisee allow the facility to be managed regularly by someone who has not successfully completed all applicable training to Alloy's satisfaction. Prospective franchisees should inquire about the full scope and costs of the training program.