factual

How long does Alloy have to notify a franchisee of the approval or disapproval of a proposed supplier?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

or if the sample fails to conform to our specifications.

Except for those items where we have approved a sole supplier, if you wish to purchase, lease or use any products or other items, or you wish to purchase from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered either to us or to an independent laboratory for testing. We reserve the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current

standards. Our supplier approval procedure does not obligate us to approve any particular supplier, and in certain circumstances we may designated a supplier as a sole supplier or one of two or three approved suppliers. We will notify you within six months after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier. We are not required to make available to you or to any supplier the criteria for product or supplier approval that we deem confidential. You must reimburse all costs we incur related to evaluating a product or supplier that you propose, up to a maximum of $5,000 per request. We may also revoke approval of a particular product or supplier. If we notify you in writing that our approval has been revoked, you must stop purchasi

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, if a franchisee wishes to purchase from an unapproved supplier, they must submit a written request for approval. Alloy will then notify the franchisee of the approval or disapproval of any proposed supplier within six months after completing the inspection and evaluation process. Alloy is not obligated to approve any particular supplier and may designate a supplier as the sole supplier.

Alloy can require its representatives to inspect the supplier's facilities and test samples. Alloy also reserves the right to re-inspect the facilities and products of any approved supplier and to revoke approval if the supplier fails to meet Alloy's standards. The approval procedure does not obligate Alloy to approve any particular supplier.

The franchisee must reimburse Alloy for all costs related to evaluating a product or supplier, up to a maximum of $5,000 per request. If Alloy revokes approval of a product or supplier in writing, the franchisee must stop purchasing from them. This process ensures that all suppliers meet Alloy's standards, but it also places the financial burden of supplier evaluation on the franchisee and limits their choice of suppliers.

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.