What does the Alloy leasehold improvements estimate include in terms of labor costs?

According to Alloy's 2025 Franchise Disclosure Document, the leasehold improvements estimate includes labor costs for specific installations. The estimate covers labor costs related to the installation of flooring and lighting. Additionally, the leasehold improvements estimate includes costs for some materials such as paint, trim, plumbing, and electrical components.

It's important to note that this estimate assumes the franchisee is renting a second-generation space, which typically requires less extensive build-out than a raw space. The FDD also emphasizes the importance of negotiating a tenant improvement allowance or credit with the landlord to offset some of these costs. During 2024, franchisees received tenant improvement credits ranging from $0 to $188,000, highlighting the variability in these negotiations.

The document also specifies that the estimate assumes the landlord provides adequate cooling, water, and heating infrastructure. The actual costs for leasehold improvements can vary significantly based on factors such as the location, size, and condition of the facility. Therefore, franchisees should carefully evaluate these factors and consult with their business advisors to develop a realistic budget for leasehold improvements.