If an Alloy franchisee is approved for a successor agreement, what potential changes might they see?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. "System" means the ALLOY System, which consists of specific equipment, fixtures, furnishings, materials and supplies; methods, uniform standards, specifications and procedures for operations; procedures for management; training and assistance; and merchandising, advertising and promotional programs and other proprietary information, all of which we may change, improve and further develop. The System is identified by the Trademarks. The System includes a proprietary software application (the "Alloy App"). The Alloy App will provide a franchisee with tools to manage and communicate with coaches and clients through a personal profile.
- F. "Trademarks" means the ALLOY Trademark that has been registered in the United States and elsewhere and the trademarks, service marks and trade names set forth in the Manual, as we may modify and change from time to time, and the trade dress and other commercial symbols used in the Facility. Trade dress includes the designs, color schemes and image we authorize you to use in the operation of the Facility from time to time.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 51–56)
What This Means (2025 FDD)
Based on the 2025 Alloy Franchise Disclosure Document, several aspects of the Alloy system are subject to change, potentially impacting franchisees entering into successor agreements. The Alloy System itself, encompassing equipment, fixtures, operational methods, management procedures, training, and marketing programs, can be modified, improved, and further developed by Alloy. This means that franchisees renewing their agreements may need to adapt to new standards, technologies, or operational practices implemented by the franchisor.
Furthermore, Alloy reserves the right to modify and change the trademarks, service marks, and trade names associated with the franchise, as detailed in the manual. This includes alterations to the trade dress, designs, color schemes, and overall image authorized for use in the Alloy facility. Franchisees need to stay updated with these changes to ensure their facility aligns with the current brand standards. The Alloy App, a proprietary software application used for managing and communicating with coaches and clients, is also subject to modifications and updates, which could affect how franchisees interact with their clients and manage their business operations.
Additionally, Alloy retains the authority to change the types of authorized goods and services offered at the franchise. Franchisees must remain compliant with these changes, offering new or different products or services as specified by Alloy. While franchisees generally have the right to set their own prices, Alloy can modify the system to establish both minimum and maximum prices for training services and related products. These potential changes underscore the importance of franchisees staying informed and adaptable to the evolving requirements and standards set by Alloy to maintain a successful and compliant franchise operation.