When are renewal and transfer fees payable to Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
n subparagraph 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 period; (vi) you comply with our then-current training requirements; (vii) you pay us a renewal fee of $5,000: and (viii) you and your owner(s) and guarantors execute a general release of claims in a form we prescribe.
- C. Interim Period. If you do not exercise your option to enter into a renewal agreement prior to the expiration of this Agreement and continue to accept the benefits of this Agreement after the expiration of this Agreement, then at our option, this Agreement may be treated either as (i) expired as of the date of expiration with you then operating a franchise without the right to do so and in violation of our rights; or (ii) continued on a month-to-month basis ("Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate thirty (30) days after receipt of the notice to terminate the Interim Period. In the latter case, all of your obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on you upon expiration of this Agreement will be deemed to take effect upon termination of the Interim Period.
FACILITY STANDARDS AND MAINTENANCE
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the renewal fee of $5,000 is payable when a franchisee exercises their option to renew the franchise agreement. To renew with Alloy, the franchisee must provide written notice of their intent to renew between 6 and 12 months before the end of the current term, sign the then-current franchise agreement, modernize the facility to meet current standards, not be in default of any agreements, renew the facility lease, comply with training requirements, pay the $5,000 renewal fee, and execute a general release of claims. Meeting all these conditions is required before the renewal is granted and the fee is due.
The transfer fee of $10,000 is payable to Alloy when a franchisee seeks to transfer their franchise to a new owner. The transfer cannot occur without Alloy's prior written consent. If a franchisee attempts to transfer the franchise without Alloy's consent or compliance with the agreement terms, Alloy has the right to either terminate the agreement or collect a transfer fee equal to two times the standard transfer fee.
In the event of a transfer, the transfer fee is nonrefundable, regardless of whether the transfer is completed. Alloy will only consent to the transfer if the assignee meets all the current requirements for new Alloy franchisees and signs the current franchise agreement. Additionally, all outstanding amounts owed to Alloy, its affiliates, suppliers, or the landlord must be paid in full before the transfer can proceed. The franchisee must also have provided all required reports and complied with modernization requirements.