factual

Is it possible to open an Alloy facility without 75 members?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

Pre-Opening Member Sales Assistance: 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, it is possible to open an Alloy facility without having 75 members prior to opening. While the standard requirement is to secure 75 members with signed monthly membership agreements and credit cards on file during the pre-sale marketing campaign, Alloy may allow a franchisee to open without meeting this requirement.

This flexibility offers a potential benefit to franchisees who may struggle to reach the 75-member threshold during the pre-sale period. However, it's important to note that Alloy's approval is required to open the facility, regardless of membership numbers. This suggests that Alloy retains the discretion to assess the franchisee's overall preparedness and potential for success before granting permission to open.

Prospective franchisees should clarify the specific conditions under which Alloy might waive the 75-member requirement. Understanding Alloy's criteria for granting such waivers is crucial for managing expectations and developing a realistic business plan. Factors such as the franchisee's marketing efforts, the location's demographics, and the overall financial projections for the facility could influence Alloy's decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.