How much is the Daily Noncompliance Fee for an Alloy franchisee, and how is it payable?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
the date of this Disclosure Document.
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- The Daily Noncompliance Fee is currently $100 per day that you remain out of compliance with the Franchise Agreement or any mandatory standard or procedure. The Daily Noncompliance Fee is payable via ACH immediately upon 24 hours' notice, and we reserve the right to continue charging it until you cure any applicable default. The Daily Fee is in addition to, and not in lieu of, any rights we have under the Franchise Agreement (including termination as set forth in the Franchise Agre
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Daily Noncompliance Fee is currently $100 per day for each day a franchisee is not in compliance with the Franchise Agreement or any mandatory standard or procedure. However, Alloy retains the right to modify this amount at any time.
This fee is payable via ACH (Automated Clearing House) and is due immediately upon 24 hours' notice. Alloy can continue to charge this fee until the franchisee corrects the noncompliance issue. It's important to note that this daily fee is in addition to any other rights Alloy has under the Franchise Agreement, including the right to terminate the agreement.
For a prospective Alloy franchisee, this means maintaining strict adherence to the Franchise Agreement and all operational standards is crucial to avoid incurring this daily fee. The fact that the fee can be changed at any time also introduces a degree of financial uncertainty, as the cost of noncompliance could increase during the franchise term. Franchisees should ensure they have systems in place to monitor and maintain compliance to avoid these charges.