factual

What quality standards must an Alloy franchisee maintain to ensure uniformity?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES*

In order to ensure a uniform image and uniform quality of services and products throughout the Alloy system, you must maintain and comply with our quality standards. Although you are not required to purchase or lease real estate from us or our affiliates, we must accept the location of your Alloy Facility (see Item 11). You must construct and equip your Franchised Business in accordance with our then current approved design, specifications and standards. In addition, it is your responsibility to ensure that your building plans comply with the Americans with Disabilities Act and all other federal, state and local laws.

We reserve the right to designate a primary or single source of supply for certain required items, and we or an affiliate may be that single source. We have required vendors for equipment, our online POS and related technology services and printed marketing and promotional materials. We also reserve the right to require you to use a designated accountant or bookkeeping service if you do not provide required financial reports and statements when they are due, or your financial reports and statements are not accurate. For other items, we have a list of preferred vendors for your consideration, although you may use another vendor provided the vendor's product or service meets our specifications or standards.

You must maintain in sufficient supply (as we may prescribe in the Manual or otherwise in writing), and use at all times, only the products purchased from suppliers designated or approved by us, and any other products, materials, supplies, fixtures, furnishings, equipment, computer systems, signs, and other items as conform with our standards and specifications, and not deviate from those standards and specifications by the use of non-conforming items without our prior written consent. A complete list of our approved products and suppliers will be included in the Manual and is subject to change over time. We will provide you notice in the Manual or otherwise in writing (such as via e-mail) of any changes to the lists of approved products and approved suppliers. You may not enter into any agreement with any health club aggregator, multi-partner membership program or utilize any type of discount, deal, or coupon-type website, without our prior written consent.

You must permit us or our agents, during normal business hours, to remove a reasonable number of samples of products from your inventory or from the Franchised Business free of charge for testing by us or by an independent laboratory to determine whether the samples meet our thencurrent standards and specifications. In addition to any other remedies we may have, we may require you to pay for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications.

Except for those items where we have approved a sole supplier, if you wish to purchase, lease or use any products or other items, or you wish to purchase from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)

What This Means (2025 FDD)

According to Alloy's 2025 Franchise Disclosure Document, franchisees must adhere to specific quality standards to maintain uniformity throughout the Alloy system. This includes constructing and equipping the franchised business according to Alloy's approved designs, specifications, and standards, as well as complying with the Americans with Disabilities Act and all other applicable laws. Franchisees are responsible for ensuring their Alloy facility location is accepted by Alloy.

To maintain consistent quality, Alloy franchisees must purchase products from designated or approved suppliers and use only products, materials, supplies, fixtures, furnishings, equipment, computer systems, and signs that conform to Alloy's standards and specifications. Deviation from these standards requires prior written consent from Alloy. Alloy reserves the right to designate a primary or single source of supply for certain required items and may also require franchisees to use a designated accountant or bookkeeping service under specific circumstances. Alloy may also inspect a franchisee's facility and inventory to ensure compliance with their standards.

Alloy also has a process for franchisees to request approval for new products or suppliers. Franchisees must submit a written request for approval, and Alloy may inspect the supplier's facilities and test samples. Alloy will notify the franchisee of its decision within six months of completing the inspection and evaluation process. Alloy can also revoke approval of a product or supplier. The franchisee is responsible for reimbursing Alloy's costs for evaluating a proposed product or supplier, up to a maximum of $5,000 per request. Alloy also reserves the right to develop proprietary products that franchisees must purchase exclusively from Alloy or its designated suppliers.

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.