Is Alloy required to approve the Facility before it opens for business?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not open your Facility for business until we have approved it as being ready to open.
You may not open your Facility for business until: (1) you have complied with all requirements regarding site selection and construction of the Facility; (2) we determine that your Facility has been constructed, decorated, furnished, equipped and stocked with equipment, materials and supplies in accordance with plans and specifications we have approved; (3) the initial training program we provided has been completed to our satisfaction by all required persons; (4) the initial franchise fee and all other amounts due to us have been paid; (5) you have furnished us with all certificates of insurance required by the Franchise Agreement; (6) you have obtained all required governmental permits, licenses and authorizations necessary for the operation of your Franchised Business; (7) you are in full compliance with all the terms of the Franchise Agreement; and (8) you have permission to open from us. We reserve the right to require you to have 75 members who have joined during the pre-sale marketing campaign, including a signed monthly membership agreement and a credit card on file.
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's approval is required before a franchisee can open their facility for business. The FDD states that a franchisee "may not open your Facility for business until we have approved it as being ready to open." This requirement is further detailed with a list of conditions that must be met before Alloy's approval is granted. These conditions cover various aspects of the business setup, including site selection, construction, training, and compliance with the franchise agreement.
Specifically, Alloy must determine that the facility has been constructed, decorated, furnished, and equipped according to the approved plans and specifications. All required personnel must complete the initial training program to Alloy's satisfaction. The franchisee must have paid the initial franchise fee and all other due amounts, and they must furnish all required insurance certificates. Additionally, the franchisee needs to obtain all necessary governmental permits, licenses, and authorizations.
Furthermore, the franchisee must be in full compliance with all terms of the Franchise Agreement to receive Alloy's permission to open. Alloy also reserves the right to require the franchisee to have at least 75 members who have joined during the pre-sale marketing campaign, with signed monthly membership agreements and credit cards on file.
This comprehensive approval process ensures that each Alloy franchise meets the brand's standards and is fully prepared to operate successfully. For a prospective franchisee, this means that opening the facility involves a structured process with multiple checkpoints and requirements that must be satisfied to gain Alloy's final approval.