Does Alloy guarantee that a new franchisee will achieve the same sales figures as some existing outlets?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
"Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much."
Our management prepared this financial performance representation based on information provided by our affiliate and franchisee CRM system that we believe to be reliable. None of the revenue or gross sales information for our Affiliate Operating Facilities or Franchisee Facilities has been audited. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request.
Other than the preceding financial performance representation, we do not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Suzanne Robb at 2500 Old Alabama Road, Suite 24, Roswell, Georgia 30076 or 678-430-8610 or at suzanne@teamalloy.com, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 57–62)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy does not guarantee that a new franchisee will achieve the same sales figures as existing outlets. The FDD states, "Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much." This statement is a standard disclaimer in franchise agreements, highlighting that past performance is not indicative of future results. Alloy emphasizes that they do not make any other financial performance representations beyond what is included in Item 19 of the FDD, and they do not authorize employees or representatives to make such guarantees, either orally or in writing.
This lack of guarantee means that prospective Alloy franchisees must carefully consider the financial performance representations provided, conduct their own market research, and develop a comprehensive business plan. Factors such as location, local market conditions, and the franchisee's management skills can significantly impact financial outcomes. While Alloy provides historical financial data for existing locations, these figures are not audited and may not be representative of what a new franchisee can expect to achieve.
Alloy does, however, offer some recourse if a potential franchisee receives unauthorized financial performance information. The FDD instructs franchisees to report any unauthorized financial performance information or income projections to Alloy's management, the Federal Trade Commission, and appropriate state regulatory agencies. This measure aims to ensure transparency and prevent misleading claims during the franchise sales process.
In the event that a prospective franchisee is considering purchasing an existing Alloy outlet, Alloy may provide the actual records of that specific outlet. This provides a more detailed look at the location's financial history, but it's still not a guarantee of future performance. Ultimately, the success of an Alloy franchise depends on various factors, and franchisees should conduct thorough due diligence before investing.