If an Alloy franchisee is charged an evaluation fee for a proposed supplier, what is this fee for?

Based on the 2025 Alloy Franchise Disclosure Document, Alloy reserves the right to charge franchisees a site evaluation fee for each on-site evaluation they conduct. This implies that if a franchisee proposes a new supplier, Alloy may conduct an on-site evaluation of that supplier's facilities or operations to ensure they meet Alloy's standards.

This evaluation fee covers the costs Alloy incurs while assessing the proposed supplier. This could include travel expenses, personnel time, and other resources used during the evaluation process. The fee ensures that Alloy can thoroughly vet potential suppliers to maintain quality and consistency across all Alloy franchises.

For a prospective Alloy franchisee, this means that introducing a new supplier not already approved by Alloy could lead to additional costs. It is important to factor in this potential evaluation fee when considering alternative suppliers. Franchisees should discuss the criteria and process for supplier approval with Alloy to understand the circumstances under which an evaluation fee might be charged.