Does Alloy need to approve the opening of the Alloy facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to opening, you must have 75 members who have joined your Facility during your pre-sale marketing campaign, with the member having a signed monthly membership agreement and a credit card on file. We may allow you to open without 75 members. You can appoint your marketing director to conduct this direct sales activity. You or your director must attend weekly pre-sale coaching and accountability meetings during the pre-sale period. You cannot open your Alloy facility until Alloy approves your opening.
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy's approval is required before a franchisee can open their facility. Specifically, the FDD states, "You cannot open your Alloy facility until Alloy approves your opening." This requirement is in place to ensure that franchisees meet certain standards and comply with the franchise agreement before commencing operations.
In addition to Alloy's explicit approval, several other conditions must be met before opening the facility. These include compliance with site selection and construction requirements, ensuring the facility is properly equipped according to Alloy's approved plans, completion of the initial training program to Alloy's satisfaction, payment of all due fees, provision of required insurance certificates, and obtaining all necessary governmental permits and licenses. Furthermore, the franchisee must have a minimum of 75 members who have joined during the pre-sale marketing campaign, each with a signed membership agreement and a verified credit card on file.
The franchisor also reserves the right to require the franchisee to have 75 members joined during the pre-sale marketing campaign before opening, although they may allow the franchisee to open without meeting this requirement. Franchisees are also required to attend weekly coaching and accountability meetings during the pre-sale period and monthly meetings with an Alloy franchise business coach after opening. Failure to attend these meetings can result in non-compliance with the franchise agreement.
These stipulations are typical in franchising, as they allow Alloy to maintain brand consistency and quality control across all franchise locations. Prospective franchisees should carefully review all opening requirements and ensure they can meet these conditions before signing the franchise agreement. It is also advisable to maintain open communication with Alloy throughout the pre-opening phase to address any potential issues and ensure a smooth opening process.