How often must an Alloy franchisee submit a report of their Gross Sales?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- J.
Reports and Audit.
Each week you must submit to us a report of your Gross Sales with respect to the preceding week on the day and in the form and content as we periodically prescribe.
The weekly report or other reports that we may require will include, but not be limited to, the following information for the preceding the applicable reporting period: (i) amount of Gross Sales and gross receipts of the Facility, amount of sales tax and the computation of the Royalty Fee and the Brand Development Fund Fee; (ii) copies of your most recent sales tax return, sales summary and monthly balance sheet and statement of profit and loss, including a summary of your costs for utilities, labor, rent and other material cost items; and (iii) if requested by us to verify your Gross Sales, all such books and records as we may require under our audit policies published from time to time.
You also must, at your expense, submit to us within 90 days after the end of each fiscal year a detailed balance sheet, profit and loss statement and statement of cash flows for such fiscal year.
We may require that the annual financial statements be reviewed by a certified public accountant.
You must certify all reports to be true and correct.
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 submit a report of their Gross Sales to Alloy on a weekly basis. The report must be submitted on a specific day, in a format, and with content that Alloy periodically prescribes.
The weekly report must include the amount of Gross Sales and gross receipts of the Alloy facility, the amount of sales tax, and the computation of the Royalty Fee and the Brand Development Fund Fee. Additionally, franchisees must provide copies of their most recent sales tax return, a sales summary, and a monthly balance sheet and statement of profit and loss, including a summary of costs for utilities, labor, rent, and other material cost items.
Alloy also has the right to request additional books and records to verify the franchisee's Gross Sales under its audit policies. Franchisees are also required to submit detailed annual financial statements within 90 days after the end of each fiscal year, which Alloy may require to be reviewed by a certified public accountant. All reports submitted by the franchisee must be certified as true and correct.
These reporting requirements ensure that Alloy can accurately calculate and collect royalty fees and brand development fund contributions, as well as monitor the financial performance of its franchisees. The detailed information required in these reports allows Alloy to maintain oversight and control over the financial health and operational standards of its franchise network.