How often is the Brand Development Fund Fee paid to Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Brand Development Fund Fee.
You must pay to us a weekly Brand Development Fund Fee in an amount equal to 2% of Gross Sales.
The Brand Development Fund Fee is separate from any local marketing requirements.
The Brand Development Fund Fees are not held by us in trust and will be spent in accordance with subparagraph 8.A of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are required to pay the Brand Development Fund Fee on a weekly basis. This fee is calculated as 2% of the franchisee's Gross Sales. The Brand Development Fund Fee is separate from any local marketing requirements that Alloy may impose.
This weekly payment schedule means that franchisees must consistently allocate a portion of their revenue to this fund, which is used for advertising and marketing efforts managed by Alloy. Unlike some franchise systems, these fees are not held in a trust or escrow account, giving Alloy discretion in how the funds are spent, provided they make a good faith effort to act in the best interest of the overall Alloy system.
Prospective franchisees should be aware of this recurring weekly obligation and factor it into their financial planning. Additionally, franchisees should stay informed about how Alloy manages and spends the Brand Development Fund by reviewing the annual unaudited statement of the fund's financial condition, which Alloy will provide if requested.