What is the maximum insufficient funds/late report fee that Alloy can charge?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| travel, lodging, meals, and wages | |||
| Insufficient Funds/Late Report Fee | $100 fee for late report/late payment, with fee increasing by $50 for each subsequent late report/late payment (up to a maximum of $250 for the fourth and any subsequent late report/late payment | On demand, if incurred | You must pay us this fee if there are not sufficient funds in your bank account to process payments owed to us and/or our affiliates or you are late in submitting reports. If you incur this fee three times in any 12 month period, we may terminate your Franchise Agreement withou |
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the insufficient funds/late report fee starts at $100 for the initial late report or payment. However, this fee can increase by $50 for each subsequent late report or payment.
The maximum insufficient funds/late report fee that Alloy can charge is $250. This maximum fee applies beginning with the fourth late report or late payment and remains at $250 for any subsequent occurrences.
It's important to note that incurring this fee three times within a 12-month period can lead to the termination of the Franchise Agreement, without the opportunity to correct the default. This highlights the importance of ensuring timely payments and report submissions to avoid these fees and potential consequences.