To whom is the rent paid for an Alloy franchise location?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
NT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $60,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Rent – 3 Months (2) | $14,400- $31,800 | As arranged | As arranged | Landlord |
| Lease and Utility Security Deposits (3) | $4,000-$7,500 | As arranged | As |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–25)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, rent and security deposits are paid to the landlord and utility companies. The FDD outlines the estimated initial investment for an Alloy franchise, including rent for the facility. The document specifies that a new franchisee will lease the premises, typically 1,500-2,000 square feet, located in a strip shopping center or free-standing location.
The FDD indicates that the estimated initial investment includes $14,400 to $31,800 for three months of rent, and $4,000 to $7,500 for lease and utility security deposits. These amounts are estimates and can vary depending on the location and size of the facility, as well as the franchisee's negotiation skills with landlords. The document also notes that landlords may charge rent based on a percentage of gross sales, in addition to base rent, and may require payment of common area maintenance charges.
Prospective Alloy franchisees should carefully consider these rental costs and security deposit requirements when evaluating the financial feasibility of the franchise. It is important to negotiate favorable lease terms with the landlord, including a tenant improvement allowance or credit, to offset some of the build-out costs. Additionally, franchisees should verify the costs for all required licenses and permits in their jurisdiction before signing the Franchise Agreement.