What happens if an Alloy franchisee does not maintain a sufficient balance for electronic transfers?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
holiday, I understand that the payment may be executed on the next business day. I understand that because this is an electronic transaction, these funds may be withdrawn from my account as soon as the above noted periodic transaction dates. In the case of an ACH Transaction being rejected for Non Sufficient Funds (NSF) I understand that Alloy Personal Tr
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if an ACH transaction is rejected due to Non-Sufficient Funds (NSF), Alloy has the discretion to attempt to process the charge again within 30 days.
In the event that Alloy reattempts the charge and it is again returned for NSF, the franchisee will be charged an additional $25 for each failed attempt. This $25 charge will be initiated as a separate transaction from the authorized recurring payment.
It is important for the franchisee to maintain sufficient funds to cover electronic transactions with Alloy, as repeated NSF charges can add up and create additional financial strain. Franchisees should also notify Alloy in writing of any changes to their account information or termination of the authorization at least 15 days prior to the next billing date to avoid any issues with electronic transfers.