How does Alloy recognize revenue from technology fees?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay to us each week a technology fee (the "Technology Fee") in an amount set forth in the Data Sheet.
We will use these fees to fund new and ongoing technology initiatives, as well as technical support and database administration, internet marketing and various corporate technology services.
We reserve the right to increase the Technology Fee by an amount of no more than 30% per calendar year in order to recover in part any increase in costs for such services.
The monies will be administered by us.
The fee will begin when the software is set up and initiated to coincide with training.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must pay a weekly technology fee, the amount of which is specified in the Data Sheet. Alloy uses these technology fees to fund new and ongoing technology initiatives, technical support, database administration, internet marketing, and various corporate technology services. Alloy retains the right to increase the Technology Fee by no more than 30% per calendar year to recover increases in costs for these services.
The monies from the technology fees are administered by Alloy. The technology fee begins when the software is set up and initiated to coincide with training.
For a prospective franchisee, this means that a portion of their weekly payments will go towards technology-related expenses, which Alloy manages. Franchisees should be aware that this fee can increase over time, up to a maximum of 30% per year, and should factor this potential increase into their financial planning. The franchisee should confirm the initial weekly technology fee amount in the Data Sheet.