How long does Alloy have to notify an Alloy franchisee of its approval or disapproval of a proposed supplier after receiving the evaluation request?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for any products, supplies or materials for which we designate a single approved supplier, if you wish to purchase products, supplies, materials or equipment from suppliers not approved by us, you must submit to us a written request to approve the proposed supplier, together with any background documents or evidence we may require. We will have the right to require you to obtain permission from the supplier to allow our representatives to inspect the supplier's facilities and that you deliver samples from the supplier for evaluation and testing to us or to an independent testing facility that we designate. We may charge you an evaluation fee to conduct our evaluation and testing. We will, within 30 days after our receipt of your evaluation request, notify you in writing of our approval or disapproval of your proposed supplier. We may revoke our approval of particular products, equipment or suppliers when we determine that such products, equipment or suppliers no longer meet our standards. Upon receipt of our revocation of approval, you must cease to use or sell any disapproved products and cease to purchase form any disapproved supplier.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase products, supplies, materials, or equipment from suppliers not already approved by Alloy, they must submit a written request for approval. This request should include any background documents or evidence Alloy may require. Alloy has the right to ask the franchisee to obtain permission from the supplier for Alloy's representatives to inspect the supplier's facilities and to provide samples for evaluation and testing, either by Alloy or an independent testing facility designated by Alloy. Alloy may also charge an evaluation fee for conducting these evaluations and tests.
Following the receipt of the franchisee's evaluation request, Alloy will notify the franchisee in writing of its approval or disapproval of the proposed supplier within 30 days. Alloy retains the right to revoke approval of particular products, equipment, or suppliers if they no longer meet Alloy's standards. Upon receiving notice of revocation, the franchisee must immediately stop using or selling any disapproved products and cease purchasing from any disapproved supplier.
This process ensures that Alloy maintains control over the quality and standards of products and services associated with its brand. For a prospective franchisee, this means they may face restrictions on where they can source products and supplies, but it also provides assurance that all approved suppliers meet Alloy's quality requirements. The 30-day notification period offers a defined timeframe for the approval process, allowing franchisees to plan their purchasing accordingly. However, the potential for evaluation fees and the possibility of supplier disapproval should be considered as potential costs and limitations.