Can Alloy require a franchisee to have a certain number of members before opening?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to opening, we reserve the right to require you to have 75 members who have joined your facility during the pre-sale marketing campaign, although we may allow you to open without 75 members. You can appoint your Director of Training or Manager to conduct this direct sales activity. You will be required to attend weekly coaching and accountability meetings during the pre-sale period. You must have Alloy HQ permission to open your facility. After opening you must attend monthly meetings with your Alloy franchise business coach. Failure to attend these required meetings will put you out of compliance with your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy retains the right to mandate that a franchisee secure a minimum of 75 members who have enrolled at the facility through pre-sale marketing efforts before commencing operations. However, Alloy also maintains the discretion to permit a franchisee to open even if this membership threshold has not been reached.
To fulfill the pre-sale activities, the franchisee can assign the responsibility of direct sales to their Director of Training or Manager. During this pre-sale phase, the franchisee is obligated to participate in weekly coaching and accountability meetings. Opening the facility is contingent upon securing permission from Alloy HQ.
Following the facility's opening, the franchisee must engage in monthly meetings with an Alloy franchise business coach. Non-compliance with these mandatory meetings constitutes a breach of the franchise agreement. This requirement ensures franchisees are actively working to build their membership base and adhere to Alloy's standards.