Is the money spent on the Alloy grand opening marketing campaign refundable?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
al franchise fee is not refundable.
Grand Opening Marketing Campaign: You must spend $30,000-$40,000 ($30,000 is the minimum requirement) for a pre-sale and grand opening marketing campaign to promote the opening of your Alloy Facility. You must pay these amounts for your grand opening marketing campaign for a period of 8 - 12 weeks prior to the opening of your Alloy Facility and these amounts are not refundable under any circumstances. You must follow the pre-sale marketing plan as described in the Pre-sale Marketing Playbook in the Operations Manual. At our request, you must give us the $30,000-$40,000 for your grand opening marketing campaign and we will conduct the campaign for you. If we collect this money from you, it is not refundable, and we will spend the entire amount on
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the money spent on the grand opening marketing campaign is generally not refundable. Franchisees are required to spend between $30,000 and $40,000, with a minimum of $30,000, on a pre-sale and grand opening marketing campaign. This campaign is intended to promote the opening of the Alloy facility and must occur during the 8 to 12 weeks leading up to the opening.
The FDD explicitly states that these amounts are not refundable under any circumstances. Furthermore, if Alloy conducts the campaign on behalf of the franchisee, after receiving the funds, the money is still not refundable, and Alloy will spend the entire amount on the grand opening marketing campaign.
This non-refundable requirement means that prospective Alloy franchisees need to carefully plan and budget for their grand opening marketing. Franchisees should also ensure they understand the pre-sale marketing plan outlined in the Pre-sale Marketing Playbook, as they are required to follow it. The franchisee bears the risk that the marketing campaign may not yield the desired results, as the funds will not be returned regardless of the campaign's success.