What is the minimum annual gross sales required for an Alloy franchise during its first year of operation?

According to Alloy's 2025 Franchise Disclosure Document, a franchisee must achieve a minimum annual gross sales of $240,000 during the first year of operation. This benchmark begins when the franchise opens for business.

For a prospective Alloy franchisee, this minimum sales target is a critical performance indicator. Failing to meet this target can trigger consequences, including mandatory additional on-site training at the franchisee's expense. If the franchisee fails to achieve the minimum annual gross sales a second time, Alloy may again require additional on-site training and assistance. A third failure could result in the termination of the Franchise Agreement without an opportunity to correct the issue. Additionally, the franchisee is responsible for covering any royalty fee shortfalls resulting from not meeting the minimum sales.

In subsequent years (Year 2 onwards), the minimum annual gross sales increases to $300,000. Alloy retains the right to adjust the minimum annual gross sales requirement based on individual franchisee circumstances, potentially reducing the target but not increasing it without the franchisee's consent. This flexibility could be beneficial if a franchisee faces unforeseen challenges during their initial years of operation.

It is important for potential Alloy franchisees to carefully consider their market and business plan to ensure they can realistically achieve these minimum sales figures. The consequences of failing to meet these targets can be significant, impacting both the franchisee's financial stability and their relationship with Alloy.