factual

For what items has Alloy required vendors?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

We reserve the right to designate a primary or single source of supply for certain required items, and we or an affiliate may be that single source. We have required vendors for equipment, our online POS and related technology services and printed marketing and promotional materials. We also reserve the right to require you to use a designated accountant or bookkeeping service if you do not provide required financial reports and statements when they are due, or your financial reports and statements are not accurate. For other items, we have a list of preferred vendors for your consideration, although you may use another vendor provided the vendor's product or service meets our specifications or standards.

You must maintain in sufficient supply (as we may prescribe in the Manual or otherwise in writing), and use at all times, only the products purchased from suppliers designated or approved by us, and any other products, materials, supplies, fixtures, furnishings, equipment, computer systems, signs, and other items as conform with our standards and specifications, and not deviate from those standards and specifications by the use of non-conforming items without our prior written consent. A complete list of our approved products and suppliers will be included in the Manual and is subject to change over time. We will provide you notice in the Manual or otherwise in writing (such as via e-mail) of any changes to the lists of approved products and approved suppliers. You may not enter into any agreement with any health club aggregator, multi-partner membership program or utilize any type of discount, deal, or coupon-type website, without our prior written consent.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)

What This Means (2025 FDD)

According to Alloy's 2025 Franchise Disclosure Document, Alloy reserves the right to designate single-source suppliers for certain required items. Specifically, Alloy has required vendors for equipment, its online POS (Point of Sale) and related technology services, and printed marketing and promotional materials. Alloy also reserves the right to require franchisees to use a designated accountant or bookkeeping service if they fail to provide accurate and timely financial reports.

For other items, Alloy maintains a list of preferred vendors, but franchisees can use alternative vendors if their products or services meet Alloy's specifications and standards. Franchisees must use products purchased from suppliers designated or approved by Alloy and ensure that all items conform to Alloy's standards and specifications. A complete list of approved products and suppliers is included in the Manual and is subject to change, with notice provided to franchisees in writing.

Alloy estimates that purchases from approved suppliers or those conforming to their specifications will constitute approximately 50% to 60% of a franchisee's total purchases when establishing their franchised business. For the ongoing operation of the business, these purchases are estimated to be approximately 20% to 30% of total purchases. Alloy also has the right to collect allowances, rebates, credits, incentives, or benefits from manufacturers, suppliers, and distributors based on franchisee purchases.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.