What is Alloy's right if a franchisee fails to make the required local advertising expenditure?

According to Alloy's 2025 Franchise Disclosure Document, if a franchisee fails to make the required local advertising expenditure, Alloy has the right to collect the deficiency and contribute it to the Brand Development Fund. This means that Alloy can take the amount that the franchisee was supposed to spend on local advertising and use it for the Brand Development Fund, which is used for system-wide marketing efforts.

This provision ensures that all Alloy franchisees contribute to local advertising as required. By allowing Alloy to collect and reallocate deficient funds, the brand aims to maintain consistent marketing efforts across all locations. This can help ensure brand awareness and attract customers to individual franchise locations.

It is important for prospective franchisees to understand the local advertising requirements and budget accordingly to avoid any deficiencies. Failure to meet these requirements could result in Alloy taking control of the advertising funds and using them for the Brand Development Fund, potentially impacting the franchisee's local marketing strategy.