What happens if an Alloy franchisee fails to make the required local advertising expenditure?

According to Alloy's 2025 Franchise Disclosure Document, if a franchisee fails to make the required local advertising expenditure, Alloy has the right to collect the deficiency and contribute it to the Brand Development Fund. This means that Alloy can take the amount that the franchisee was supposed to spend on local advertising and use it for the Brand Development Fund, which is used for broader marketing initiatives.

This policy ensures that all franchisees contribute to local advertising efforts as required by Alloy. By collecting the deficiency and allocating it to the Brand Development Fund, Alloy aims to maintain consistent marketing efforts across the franchise system. This can help ensure brand awareness and attract customers to all Alloy locations, even if some franchisees are not fulfilling their local advertising obligations.

It is important for prospective Alloy franchisees to understand their local advertising obligations and the consequences of not meeting them. Franchisees should budget accordingly and ensure they have a plan in place to meet their advertising requirements to avoid Alloy collecting the deficiency. Franchisees should also be aware of how the Brand Development Fund is used and how it benefits the entire franchise system.