Can Alloy reinstate the Brand Development Fund after it has been terminated?

According to Alloy's 2025 Franchise Disclosure Document, Alloy reserves the right to terminate the Brand Development Fund at any time by providing notice to franchisees. If the fund is terminated, any remaining money will be used for advertising and promotion or returned to the contributors on a pro rata basis, meaning it will be divided and returned based on each franchisee's contribution. Importantly, Alloy retains the right to reinstate the Brand Development Fund at any time after it has been terminated. If reinstated, the fund will be maintained as previously described in the FDD.

This policy provides Alloy with flexibility in managing its marketing and brand development strategies. For a franchisee, this means that the Brand Development Fund, which they contribute to via a percentage of gross sales (as mentioned elsewhere in the FDD), is not guaranteed to be a permanent fixture. Alloy can discontinue it and then bring it back as they see fit.

While the FDD stipulates that any remaining funds must be used for advertising/promotion or returned to franchisees, it does not specify the timeline or method for doing so. A prospective franchisee should seek clarification from Alloy regarding the procedures and timing for distributing remaining funds if the Brand Development Fund is terminated. Understanding these details can help a franchisee better anticipate and manage potential changes in marketing contributions and strategies.