What happens to the remaining money in the Alloy Brand Development Fund if it is terminated?

According to Alloy's 2025 Franchise Disclosure Document, Alloy reserves the right to terminate the Brand Development Fund at any time by providing notice to franchisees. If the fund is terminated, any money remaining in it will be used for advertising and promotion or returned to the contributors on a pro rata basis. Alloy also retains the right to reinstate the fund at any time after termination, and any reinstated fund will be maintained as previously described.

This means that if Alloy decides to discontinue the Brand Development Fund, franchisees could potentially receive a portion of their contributions back, proportional to their payments into the fund. However, Alloy has the option to use the remaining funds for advertising and promotion purposes instead of returning them to franchisees. This provides Alloy with flexibility in how to manage the remaining assets of the fund upon termination.

It is important for prospective Alloy franchisees to understand that the Brand Development Fund can be terminated and reinstated at Alloy's discretion. While there is a possibility of receiving a pro rata share of the remaining funds if terminated, Alloy is not obligated to do so and may instead use the funds for advertising and promotion. Franchisees should consider this when evaluating the terms and conditions related to the Brand Development Fund.