What does Alloy recommend regarding membership pricing tiers in high rent districts?

According to Alloy's 2025 Franchise Disclosure Document, when calculating rent factors, Alloy recommends franchisees use different membership pricing tiers to account for high rent districts in certain parts of the country.

This recommendation suggests that Alloy recognizes the impact of location on profitability. In areas where rent is significantly higher, franchisees may need to adjust their membership pricing to maintain viable profit margins. This could involve offering premium membership tiers with higher prices or adjusting the pricing of existing tiers to reflect the increased overhead costs associated with a high-rent location.

For a prospective Alloy franchisee, this means carefully evaluating the rental costs in their desired location and considering how those costs will impact their pricing strategy. It would be prudent to conduct thorough market research to determine the optimal membership pricing tiers that balance profitability with attracting and retaining members. Franchisees should discuss specific pricing strategies and benchmarks with Alloy during their due diligence to ensure they are well-prepared to address the challenges of operating in a high-rent environment.