When must the Alloy renewal fee be paid?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
15.P below and the Data Sheet and ends 10 years from the date of this Agreement, subject to any modifications in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 51–56)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees have the option to renew their franchise agreement for one additional 10-year term. To do so, the franchisee must provide written notice of their intent to renew at least 6 months, but no more than 12 months, before the current term expires. They must also sign the then-current franchise agreement, which may have different terms and higher fees than the original agreement.
Several other conditions must be met to qualify for renewal. The franchisee must have complied with modernization requirements, not be in default of the agreement, and have satisfied all financial and material obligations on time. If the facility premises are leased, the franchisee must renew the lease for the renewal period. Franchisees must also comply with Alloy's then-current training requirements and execute a general release of claims.
Finally, the franchisee must pay Alloy a renewal fee of $5,000. The FDD does not specify a precise deadline for when this fee must be paid, but it is implied that it must be paid to Alloy before the renewal agreement is finalized and takes effect. Prospective franchisees should confirm the exact payment terms and deadline with Alloy during their due diligence.
It is common practice in the franchise industry for renewal fees to be paid upon signing the renewal agreement. Franchisees should budget for this expense and ensure they meet all other renewal conditions to avoid any disruption in their business operations.