What may Alloy do if it establishes strategic alliances or preferred vendor programs?

According to Alloy's 2025 Franchise Disclosure Document, if Alloy establishes strategic alliances or preferred vendor programs, it has several options regarding suppliers. Alloy may limit the number of approved suppliers with whom a franchisee can deal. Alloy can also designate specific sources that franchisees must use for some or all products, equipment, and services. Furthermore, Alloy may refuse to approve proposals from franchisees to add new suppliers if Alloy believes that such approval would not be in the best interests of the Alloy system.

This means that as an Alloy franchisee, your choice of suppliers for various products, equipment, and services could be restricted if Alloy enters into strategic alliances or preferred vendor programs. You might be required to use designated suppliers, even if you find others with better pricing or terms. This could impact your operational costs and potentially limit your ability to negotiate favorable deals with suppliers.

It is important for prospective franchisees to understand that Alloy retains significant control over the supply chain. While these alliances could offer benefits such as consistent supply and potentially negotiated pricing, they also reduce the franchisee's autonomy in sourcing products and services. Franchisees should inquire about the criteria Alloy uses to select preferred vendors and the process for franchisees to suggest or request approval of alternative suppliers.