What happens if Alloy revokes approval of a particular product or supplier?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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 If we notify you in writing that our approval has been revoked, you must stop purchasi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, Alloy reserves the right to re-inspect the facilities and products of any approved supplier and to revoke its approval if the supplier fails to continue to meet Alloy's standards. If Alloy notifies a franchisee in writing that approval has been revoked for a particular product or supplier, the franchisee must stop purchasing that product and/or stop purchasing from that supplier. This is to ensure a uniform image and consistent quality of services and products throughout the Alloy system.
Alloy maintains a list of approved products and suppliers, which is included in the Manual and subject to change. Franchisees will receive notice of any changes to these lists in the Manual or via written communication, such as email. Franchisees are required to purchase products only from suppliers designated or approved by Alloy and must adhere to Alloy's standards and specifications.
This policy is fairly standard in franchising, as franchisors need to maintain quality control and consistency across all locations. However, it's important for prospective Alloy franchisees to understand that they may be required to switch suppliers if Alloy revokes approval, which could potentially impact their costs and operations. Franchisees should also be aware that Alloy may designate a single source of supply for certain required items, which could limit their options.