If developing two Alloy Franchised Businesses, what is the development fee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
lity until Alloy approves your opening.
Area Development Agreement: If we award you the right to develop two or more Franchised Businesses within a given Development Area, you must pay us a one-time development fee upon execution of your Development Agreement. The development fee is not refundable. Your development fee will depend on the number of Franchised Businesses we grant you the right to develop within the Development Area, and is calculated as follows: (i) $110,000 for the right to develop two Franchised Businesses; (ii) $45,000 per Franchised Business if you agree to develop between three and five Franchised Business; (iii) $40,000 per Franchised Business if you agree to develop between six and nine Franchised Businesses; and (iv) $35,000 per Franchised Business if you agree to develop 10 or more Franchised Businesses. You will be required to enter into our then-current form of franchise agreement for each Franchised Business you wish to develop under your Development Agreement, but you will not be required to pay any additional initial franchise fee at the time you e
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if you are granted the right to develop two franchised businesses within a Development Area, you must pay a one-time development fee of $110,000. This fee is payable upon the execution of the Development Agreement and is non-refundable.
This development fee grants you the right to develop multiple Alloy locations within a specific area, and you will not be required to pay any additional initial franchise fees when you execute the franchise agreements for each location. This is a common practice in franchising, where developers pay an upfront fee for the rights to expand the brand in a given territory.
It is important to note that while the development fee covers the right to develop multiple locations, you will still need to meet Alloy's requirements for site selection, financial capabilities, and operational standards for each facility. Failing to meet these standards or comply with the development schedule could result in the termination of the Development Agreement.