What is required of the 75 members who have joined during the pre-sale marketing campaign for Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Designated Area (unless otherwise authorized by us in writing as part of our guidelines). We may establish written guidelines regarding membership solicitation, and you agree to comply with any required guidelines.
Prior to opening your Business, you must have 75 members who have joined your Facility during your pre-sale marketing campaign, with the member having a signed membership agreement and a verified credit card on file, although in certain circumstances we may permit you to open your Business with less than 75 members. You can appoint your marketing representative to conduct this direct sales activity.
D. Alloy App. You must purchase a proprietary software application system that complies with our standards and requirements, including all future updates, supplements and modifications (the "Alloy App") and sign any related agreements that we require. The Alloy App is a tool for you to use in the operation of your Facility and not as a means for us to exercise control over the day-to-day operation of your Facility. The Alloy App and other future software and hardware that you are required to use in the operation of the Facility may include designated software used to manage and communicate with your coaches and clients through the personal profile you build. Through the Alloy App, you will be able to build specific, video driven programs for your clients, send messages to your clients, and track each client's results.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a prospective franchisee must secure 75 members who have joined the Alloy facility during the pre-sale marketing campaign before opening their business. Each of these 75 members must have a signed membership agreement and a verified credit card on file.
This pre-opening requirement ensures that the franchisee has a foundational customer base from the outset. While Alloy mandates 75 members, it also retains some flexibility, noting that in certain circumstances, they may permit a franchisee to open with fewer than 75 members.
To achieve this pre-sale membership target, Alloy allows franchisees to appoint a marketing representative to conduct direct sales activities. Furthermore, franchisees are required to use Alloy's then-current standard form of Membership Agreement, although modifications may be necessary to comply with state and local laws. Any changes to the standard form must receive written approval from Alloy. The Membership Agreement must include a reciprocity provision, a waiver and release of Alloy and its affiliates, and a statement identifying the Facility as an independently-owned franchised location.