What is the insufficient funds/late report fee for Alloy, and how does it increase with subsequent occurrences?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| travel, lodging, meals, and wages | |||
| Insufficient Funds/Late Report Fee | $100 fee for late report/late payment, with fee increasing by $50 for each subsequent late report/late payment (up to a maximum of $250 for the fourth and any subsequent late report/late payment | On demand, if incurred | You must pay us this fee if there are not sufficient funds in your bank account to process payments owed to us and/or our affiliates or you are late in submitting reports. If you incur this fee three times in any 12 month period, we may terminate your Franchise Agreement withou |
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees may incur an insufficient funds/late report fee. The initial fee is $100 for either a late report/late payment or for having insufficient funds in the bank account to cover payments owed to Alloy or its affiliates.
The fee structure increases with subsequent late reports or late payments. Specifically, the fee increases by $50 for each subsequent occurrence. This means the second instance would cost $150, and the third would be $200.
This escalating fee structure continues until it reaches a maximum of $250 for the fourth and any subsequent late report/late payment. The FDD also states that if a franchisee incurs this fee three times within a 12-month period, Alloy has the right to terminate the Franchise Agreement without providing an opportunity to correct the default. This policy underscores the importance of maintaining sufficient funds and submitting reports on time to avoid penalties and potential termination of the franchise agreement.