What was the range of TI credits received by Alloy franchisees during 2024?

According to Alloy's 2025 Franchise Disclosure Document, during 2024, franchisees received tenant improvement (TI) credits ranging from $0 to $188,000. These credits are negotiated with the landlord to offset the costs of buildout and improvements to the facility. The FDD notes that securing a TI allowance or credit is consistent with industry statistics. However, the availability and amount of TI credits can vary significantly based on market conditions, the franchisee's financial condition, and the lease term.

Construction costs and TI allowances/credits can vary significantly from market to market and among local vendors. The condition of the premises also plays a significant role, as spaces requiring more extensive work may justify a larger TI allowance. The financial strength of the tenant (the franchisee) can influence the landlord's willingness to offer a credit, as a more secure tenant represents less risk. Longer lease terms may also incentivize landlords to provide more substantial TI packages, as they can recoup the investment over a longer period.

Prospective Alloy franchisees should carefully consider these factors when evaluating potential locations and negotiating lease terms. It is crucial to consult with business advisors and general contractors to understand the typical TI allowances in their target market. A well-negotiated TI credit can substantially reduce the initial investment required to open an Alloy franchise, but franchisees should be prepared to finance the full buildout cost if a sufficient credit cannot be secured.