How often is the Royalty Fee paid to Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
On August 1, 2019, the Company entered into a perpetual, non-cancelable, royalty-free and non-exclusive license agreement with the Licensor for the use of the registered name "Alloy Personal Training" (the "license agreement"). Pursuant to the license agreement, the Company has acquired the right to sell Alloy Personal Training franchises and collect franchise fees, royalties and other fees from franchisees.
Pursuant to the structured form of the franchising arrangement, the Company collects brand fund fees of 2% of franchisees' reported sales.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 FDD, the frequency of royalty fee payments for an Alloy franchise is not explicitly detailed in the provided excerpts. While the documents mention the existence of royalty fees and other fees, the specific payment schedule is not outlined. The FDD does mention that the company has acquired the right to collect franchise fees, royalties, and other fees from franchisees. Also, the brand fund fee is collected as 2% of franchisees' reported sales.
To fully understand the payment schedule for royalty fees, a prospective Alloy franchisee should consult the specific Franchise Agreement. This agreement typically contains detailed information regarding the amount, frequency, and method of royalty fee payments.
It is important for potential franchisees to clarify these payment terms to accurately forecast their ongoing expenses and ensure they can meet the financial obligations of the franchise.