If Alloy furnishes a list of prices, is the Alloy franchisee obligated to follow it?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You generally have the right to establish prices for the training services and related services and products you offer and sell at your Franchised Business. We may, from time to time, suggest prices for the training services and related services and products you offer and sell. We do, however, have the right to modify the System to give us the right to establish prices for such training services and related services and products, both minimum and maximum. Any such modification will be in writing. Unless we so modify the System, any list or schedule of prices we furnish to you is a recommendation only.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 50–51)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees generally have the right to establish their own prices for training services, related services, and products. Alloy may suggest prices from time to time. However, unless Alloy modifies the system in writing to establish mandatory minimum and maximum prices, any price list or schedule they provide is only a recommendation.
This means that as a prospective Alloy franchisee, you typically have the flexibility to set your own prices based on your local market conditions and business strategy. However, Alloy retains the right to change this policy and mandate price ranges in the future through a written modification to the franchise system.
It is important for potential franchisees to understand that Alloy could implement a pricing structure that dictates minimum or maximum prices. Franchisees should inquire about Alloy's long-term pricing strategies and how often they anticipate making changes to the pricing system. Understanding these potential changes is crucial for assessing the potential profitability and control you will have over your Alloy franchise.