Will Alloy provide franchisees with a statement of the Brand Development Fund's financial condition?

According to Alloy's 2025 Franchise Disclosure Document, Alloy will provide franchisees with an annual unaudited statement of the financial condition of the Brand Development Fund if requested.

The Brand Development Fund is managed by Alloy, and the fees collected are intended to be used for advertising and related expenses to benefit franchisees. Alloy retains the right to determine how the funds are spent, including the methods of marketing and advertising employed. A portion of the fund may also be used to offset Alloy's administrative costs for managing the fund, which is at the discretion of Alloy.

It is important to note that the Brand Development Fund is not a trust or escrow account, and Alloy does not have a fiduciary obligation to franchisees regarding the fund. However, Alloy states that it will make a good faith effort to spend the fees in a manner that it determines is in the general best interests of the Alloy system. Franchisees should be aware that because of the methods used, Alloy is not required to spend a prorated amount on each facility or in each advertising market.