What specific financial metrics are included in Part A of the Alloy financial performance representation?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This financial performance representation discloses historical information regarding the 2024 Measurement Period (January 2024-December 2024) for (i) Part A - the average monthly revenue, monthly membership, revenue per member and actual monthly retention percentage for one Affiliate Operating Facility and 28 Franchisee Facilities open for the entire 2024 Measurement Period, (ii) Part B – monthly membership pricing and member attendance for one Affiliate Operating Facility and 28 Franchisee Facilities open for the entire 2024 Measurement Period and (iii) Part C – monthly revenue for 41 Franchisee Facilities that opened in 2024 but were not open for the entire 2024 Measurement Period. None of those Franchisee Facilities that opened in 2024 also closed in 2024. We have not included 6 Franchisee Facilities that opened during December 2024 since they did not have a full month's revenue. We also have not included 1 Franchisee Facility that opened prior to January 2024 but was closed for part of 2024 and subsequently transferred.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 57–62)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Part A of the financial performance representation includes specific historical financial metrics from January 2024 to December 2024. This data encompasses the average monthly revenue, monthly membership numbers, revenue per member, and the actual monthly retention percentage. The data is based on one Affiliate Operating Facility and 28 Franchisee Facilities that were open for the entire 2024 measurement period.
For a prospective Alloy franchisee, this information offers a glimpse into the potential financial performance of an established Alloy location. By examining the average monthly revenue, franchisees can estimate potential income. The monthly membership data indicates the average customer base, while revenue per member helps understand how effectively each member contributes financially. The monthly retention percentage is crucial, as it reflects the ability to retain members over time, which is vital for sustainable revenue.
It is important to note that Alloy did not include data from six Franchisee Facilities that opened in December 2024, as they did not have a full month's revenue. Additionally, one Franchisee Facility that opened before January 2024 but was closed for part of the year and subsequently transferred was also excluded. This suggests that the financial performance representation focuses on facilities with a consistent operating history during the measurement period, providing a more reliable snapshot for potential franchisees. Prospective franchisees should also remember that these numbers are averages and individual results may vary.