Does Alloy specify the content of the weekly gross sales report?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- J.
Reports and Audit.
Each week you must submit to us a report of your Gross Sales with respect to the preceding week on the day and in the form and content as we periodically prescribe.
The weekly report or other reports that we may require will include, but not be limited to, the following information for the preceding the applicable reporting period: (i) amount of Gross Sales and gross receipts of the Facility, amount of sales tax and the computation of the Royalty Fee and the Brand Development Fund Fee; (ii) copies of your most recent sales tax return, sales summary and monthly balance sheet and statement of profit and loss, including a summary of your costs for utilities, labor, rent and other material cost items; and (iii) if requested by us to verify your Gross Sales, all such books and records as we may require under our audit policies published from time to time.
You also must, at your expense, submit to us within 90 days after the end of each fiscal year a detailed balance sheet, profit and loss statement and statement of cash flows for such fiscal year.
We may require that the annual financial statements be reviewed by a certified public accountant.
You must certify all reports to be true and correct.
We or our authorized representative have the right at all times during the business day to enter the premises where your books and records relative to the Facility are kept and to evaluate, copy and audit such books and records. We also have the right to request information from your suppliers and vendors. In the event that any such evaluation or audit reveals any understatement of 3% or more of your Gross Sales, you must pay for the audit, and in addition to any other rights we may have, we have the right to conduct further periodic audits and evaluations of your books and records as we reasonably deem necessary for up to 3 years thereafter and any further audits and evaluations will be at your sole expense, including, without limitation, professional fees, travel, and room and board expenses directly
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must submit a weekly gross sales report. The report's format and content will be as Alloy prescribes periodically. The weekly report must include the amount of gross sales and gross receipts, the amount of sales tax, and the computation of the Royalty Fee and the Brand Development Fund Fee.
In addition to the weekly sales report, Alloy may also require franchisees to submit copies of their most recent sales tax return, sales summary, and monthly balance sheet and statement of profit and loss. This includes a summary of costs for utilities, labor, rent, and other material cost items. To verify gross sales, Alloy may request books and records under its audit policies.
Furthermore, franchisees must submit detailed annual financial statements within 90 days after the end of each fiscal year. Alloy may require these annual statements to be reviewed by a certified public accountant. All reports submitted must be certified as true and correct. Alloy retains the right to audit the franchisee's books and records at any time during business hours and can request information from suppliers and vendors.