What are some reasons why an Alloy franchisee might not meet the 75-member threshold prior to opening?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Note: All new franchisees are required to run a 8-12 week membership pre-sale campaign prior to grand opening. Franchisees are required to have 75 members prior to being authorized to open, however, some members cancel their memberships prior to billing or their credit card is declined. We may authorize you to open even if you do not have 75 members.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 57–62)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are required to run a membership pre-sale campaign lasting 8-12 weeks before their grand opening. A condition for opening is to acquire at least 75 members. However, the FDD notes that achieving this target is not always guaranteed.
Specifically, the document states that some members may cancel their memberships before billing occurs. Additionally, credit card declines can prevent potential members from fully signing up. These factors can lead to a franchisee falling short of the 75-member goal despite their pre-sale efforts.
It's important to note that Alloy may still authorize a franchisee to open even if they haven't reached the 75-member threshold. This suggests that while the target is preferred, it is not an absolute requirement, and Alloy retains some discretion in allowing franchisees to commence operations. Prospective franchisees should discuss with Alloy the specific conditions under which they might be allowed to open with fewer than 75 members and what support Alloy provides to help reach the target.