Does Alloy have the right to designate local or regional advertising markets?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to designate local or regional advertising markets and if designated, you must participate in and contribute to any group or cooperative advertising and marketing programs in your designated local or regional market.
If established, you must contribute to the amount we designate (or the cooperative designates if a cooperative is established).
Each ALLOY facility, including those operated by us or our affiliates within a designated local or regional advertising market (except Special Sites) is a member of the local advertising group or cooperative.
We will establish any rules or requirements of any local or regional advertising market (whether in the form of a group or cooperative.
Any amounts you
contribute to a local or regional advertising group or cooperative will count toward your local marketing requirement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy retains the right to designate local or regional advertising markets. If Alloy designates such markets, franchisees are required to participate in and contribute to any group or cooperative advertising and marketing programs within their designated market. The amount franchisees must contribute will be determined by Alloy or the cooperative, if one is established.
Each Alloy facility, including those operated by Alloy or its affiliates (excluding Special Sites), will be a member of the local advertising group or cooperative. Alloy will also establish the rules and requirements for any local or regional advertising market, whether in the form of a group or cooperative. Any amounts that a franchisee contributes to a local or regional advertising group or cooperative will count toward their local marketing requirement.
Additionally, Alloy reserves the right to establish a regional advertising cooperative for a region in which two or more facilities are located. In this case, Alloy will collect up to 1% of its franchisees' gross revenues, with the specific amount to be determined by the cooperative members. Any contributions to a Regional Advertising Cooperative will be credited towards a franchisee's local marketing expenditures. As of December 31, 2024, the Regional Advertising Cooperative had not yet been established.