When is the initial franchise fee for an Alloy franchise due?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
is Item.
ITEM 5 INITIAL FEES
Franchise Agreement: You must pay us an initial franchise fee of $60,000 for the right to establish a single Alloy Facility under a Franchise Agreement. We provide a $5,000 discount on the first license for active-duty reserves or honorably discharged veterans of the U.S. Armed Forces and part of the Veterans Transition Franchise Initiative (commonly referred to as "Vet Fran"), which seeks to provide an opportunity for veterans who want to be in business.
You must pay the initial franchise fee in full when you sign the Franchise Agreement. The init
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the initial franchise fee is due when the Franchise Agreement is signed. The standard initial franchise fee is $60,000, but Alloy offers a $5,000 discount to active-duty reserves or honorably discharged veterans of the U.S. Armed Forces who are part of the Veterans Transition Franchise Initiative. This fee grants the franchisee the right to establish a single Alloy Facility. The initial franchise fee is non-refundable.
It's important to note that for franchisees in South Dakota and Minnesota, there are addenda to the Franchise Agreement that affect the payment of the initial franchise fee. Due to Alloy's financial condition, the South Dakota Securities Regulation Office and the Minnesota Department of Commerce require a financial assurance. Therefore, for franchisees in these states, all initial fees and payments are deferred until Alloy completes its pre-opening obligations under the franchise agreement.
Prospective franchisees should carefully review Item 5 of the FDD and any state-specific addenda to fully understand the initial fees and payment terms. They should also confirm with Alloy whether they qualify for any discounts, such as the veteran's discount. Understanding the timing and conditions for payment of the initial franchise fee is a crucial part of evaluating the overall investment required to start an Alloy franchise.