If Alloy modifies the System to establish prices, will this modification be in writing?
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 set their own prices for training services and related products. Alloy may, from time to time, suggest prices for these services and products. However, Alloy retains the right to modify the System, which would then allow them to establish prices, both minimum and maximum, for the training services and related products offered by franchisees.
Any modification to the System that grants Alloy the right to set prices must be in writing. Until such a modification is made, any price list or schedule provided by Alloy is only a recommendation and not a requirement.
This means that as a prospective Alloy franchisee, you would typically have control over your pricing strategy. However, Alloy reserves the right to change this through a written modification to the System, giving them the authority to set prices. It is important to understand the conditions under which Alloy might exercise this right and how it could impact your business's profitability and pricing flexibility.