What materials are included in the leasehold improvements estimate for an Alloy franchise?

According to Alloy's 2025 Franchise Disclosure Document, the leasehold improvements estimate includes certain materials, assuming the landlord provides adequate cooling, water, and heating infrastructure. The estimate covers some materials such as paint, trim, plumbing, electrical, and flooring. It also accounts for labor costs and the installation of certain features, including flooring and lighting.

It is important to note that the leasehold improvements estimate provided by Alloy is based on renting a second-generation space. The FDD also expects franchisees to negotiate a tenant improvement allowance or credit with the landlord, which can significantly affect the final 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 construction costs and tenant improvement allowances can vary significantly depending on the market, local vendors, the condition of the premises, the financial condition of the tenant, and the lease term. The actual costs for leasehold improvements may differ from Alloy's estimate due to factors such as the location, size, and condition of the facility.

Prospective franchisees should carefully consider these factors and conduct thorough due diligence to obtain accurate estimates for their specific location and circumstances. It is advisable to consult with business advisors and negotiate effectively with landlords to secure favorable tenant improvement allowances.