factual

Does Alloy have limits on its right to make changes to authorized goods and services?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

You must sell or offer for sale only those products and services that we have approved for sale in writing; you must sell or offer for sale all types of products and services specified by us; you should not change our standards and specifications without our prior written consent; and you must stop selling and offering for sale any products or services which we may, in our discretion, disapprove in writing at any time. We have the right to change the types of authorized goods and services and there are no limits on our right to make changes.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 50–51)

What This Means (2025 FDD)

According to the 2025 FDD, Alloy has the right to change the types of authorized goods and services franchisees can offer, and there are no limits on this right. Alloy franchisees must sell or offer only those products and services that Alloy has approved in writing, and they must sell or offer all types of products and services specified by Alloy. Franchisees must not change Alloy's standards and specifications without prior written consent, and they must stop selling any products or services that Alloy disapproves in writing.

This means that Alloy has significant control over the products and services offered at its franchise locations. A prospective franchisee should be aware that Alloy can change the approved products and services at any time, and the franchisee must comply with these changes. This could require franchisees to invest in new equipment or training, or it could make existing inventory obsolete.

While franchisees generally have the right to establish prices for their services and products, Alloy retains the right to modify the system to establish prices, both minimum and maximum, for training and related services and products. Any such modification will be in writing. The Alloy system may be supplemented, improved, or modified periodically by Alloy, and franchisees must comply with all reasonable requirements, including offering and selling new or different products or services as specified by Alloy.

This level of control is common in franchising, as it helps to ensure consistency and quality across all locations. However, it also means that franchisees have limited autonomy in terms of the products and services they can offer. Prospective franchisees should carefully consider whether they are comfortable with this level of control before investing in an Alloy franchise.

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.