If a trainee fails to complete the Alloy training program, what options are available to the franchisee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If any trainee fails to complete the training program to our satisfaction, we will give that trainee the opportunity to re-take the training program, or you may designate a new Operating Partner, General Manager/Head Trainer or Trainer to re-take the training program. We reserve the right to require you to pay our then-current training fee for any trainee re-taking our training program. If any trainee fails to complete the training program a second time, we may choose to terminate the Franchise Agreement without providing you a refund of any portion of the initial franchise fee.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a trainee does not complete the training program to Alloy's satisfaction, Alloy will allow the trainee to retake the training program. Alternatively, the franchisee can designate a new Operating Partner, General Manager/Head Trainer, or Trainer to retake the training program. Alloy retains the right to require the franchisee to pay the then-current training fee for any trainee who is retaking the training program.
However, if a trainee fails to complete the Alloy training program a second time, Alloy has the option to terminate the Franchise Agreement. If Alloy chooses to terminate the agreement, the franchisee will not receive a refund of any portion of the initial franchise fee.
This policy highlights the importance Alloy places on proper training and the potential financial consequences for franchisees if their designated personnel do not meet the required standards. Franchisees should carefully consider the capabilities and commitment of their trainees to avoid these penalties.