Does Alloy require the General Manager to have an ownership interest in the franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Operating Partner may also act as your General Manager. Your General Manager (if the General Manager is a separate individual from the Operating Partner) must participate fulltime in the Franchised Business if the Operating Partner does not. We do not require that your General Manager have an ownership interest in you or the Franchised Business. Your General Manager will act as the Director of Training for your Facility.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 49–50)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy does not require the General Manager to have an ownership interest in the franchise. The FDD specifies that while the Operating Partner, who is the primary contact for the Franchised Business, may also act as the General Manager, it is not mandatory.
If the Operating Partner does not fulfill the General Manager role, the appointed General Manager must participate full-time in the Franchised Business. However, Alloy explicitly states that it does not require the General Manager to possess an ownership stake in the franchise.
This provides flexibility for franchisees in structuring their management team. They can either have an owner serve as the General Manager or hire a separate individual for that role without needing to offer them equity in the business. This can be beneficial for franchisees who want to retain full ownership control or who prefer to incentivize their General Manager through salary and performance-based bonuses rather than equity.