What is the service charge Alloy assesses for each delinquent report or payment?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
nts that you owe to us or to our affiliates will bear interest at the rate of 12% per annum or the maximum contract rate of interest permitted by governing law, whichever is less, from and after the date of accrual. In addition to interest charges on late Royalty Fee and Brand Development Fund Fee payments, you must pay to us a service charge of $100 for each delinquent report or payment that you owe to us under this Agreement. A payment is delinquent for any of the following reasons: (i) we do not receive the payment on or before the date due; or (ii) there are insufficient funds in your bank account to collec
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee submits a late report or payment, Alloy assesses a $100 service charge for each instance. A payment is considered delinquent if Alloy does not receive it by the due date or if there are insufficient funds in the franchisee's bank account when Alloy attempts to collect the payment.
This service charge is in addition to any interest charges that may apply to late Royalty Fee and Brand Development Fund Fee payments. However, Alloy clarifies that this $100 service charge is not a penalty or interest. Instead, it is intended to compensate Alloy for the increased administrative and management costs associated with handling late payments and reports.
For a prospective Alloy franchisee, this means it is crucial to ensure all reports and payments are submitted on time and with sufficient funds to avoid incurring these additional charges. This policy highlights the importance of maintaining diligent financial management and adhering to Alloy's reporting deadlines to minimize unnecessary expenses.