Who has all right, title, and interest in and to any and all Allowances related to an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliates based upon your purchases of products and services from manufacturers, suppliers, and distributors. We or our affiliates will have all of your right, title, and interest in and to any and all of these Allowances. We or our affiliates may collect and retain any or all of these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). We may also choose to contribute these Allowances to the Brand Development Fund, but if we do so it does not reduce or eliminate your requirement to pay the
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy or its affiliates retain all rights, title, and interest in any allowances, rebates, credits, incentives, or benefits offered by manufacturers, suppliers, and distributors based on a franchisee's purchases of products and services. These allowances are referred to as "Allowances". Alloy or its affiliates can collect and retain these Allowances without any restrictions, unless the manufacturer, supplier, or distributor specifies otherwise.
This means that while Alloy franchisees are responsible for purchasing supplies and services needed to operate their business, any financial incentives or benefits associated with those purchases ultimately belong to Alloy. Alloy has the discretion to manage these allowances as they see fit.
Alloy may also choose to contribute these Allowances to the Brand Development Fund. However, this contribution does not reduce or eliminate the franchisee's obligation to pay into the Brand Development Fund. This arrangement allows Alloy to potentially benefit financially from franchisee purchases, either by retaining the allowances directly or by using them to support the Brand Development Fund, while franchisees do not directly benefit from these allowances.