What specific financial statements must Alloy franchisees submit annually?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
site). We may conduct on-site evaluations, as we deem advisable, as part of our evaluation of the site for the Facility. We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct. - 3. Your Submission of Information. You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.
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- Your Compliance with Our Then-Current Standards for Franchisees. You must receive written confirmation from us that you meet our then-current standards for franchisees, including financial capability criteria for the development of a new Facility.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 FDD, Alloy requires prospective franchisees to submit financial statements as part of their franchise application. Specifically, at least 60 days before the earlier of the date in the Development Schedule for executing a Franchise Agreement or the actual execution date, the applicant must provide financial statements and other information. This information pertains to the applicant, any existing facilities they operate within the Development Territory, and the development and operation plans for the proposed Alloy facility. Alloy requires this to ensure the applicant meets their financial standards for developing a new facility.
This requirement is in place to ensure the proper development and operation of Alloy facilities, and to maintain the brand's reputation and goodwill. However, Alloy explicitly states that their confirmation of meeting these standards does not guarantee the franchisee's success.
The FDD does not specify exactly which financial statements (e.g. balance sheets, income statements, etc.) Alloy requires franchisees to submit annually. A prospective franchisee should ask Alloy's franchise representatives for a detailed list of the required financial documents and the specific format in which they should be submitted.