Does Alloy's supplier approval procedure obligate Alloy to approve any particular supplier?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ls to continue to meet any of our then-current
standards. Our supplier approval procedure does not obligate us to approve any particular supplier, and in certain circumstances we may designated a supplier as a sole supplier or one of two or three approved suppliers. We will notify you within six months after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier. We are not required to make available to you or to any supplier the criteria for product or supplier approval that we deem confidential. You must reimburse all costs we incur related to evaluating a product or supplier that you propose, up to a maximum of $5,000 per request. We may also revoke approval of a particular product or supplier. If we notify you in writing that our approval has been revoked, you must stop purchasi
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's supplier approval procedure does not obligate them to approve any particular supplier. However, Alloy can designate a supplier as a sole supplier, or one of two or three approved suppliers. Alloy will notify a franchisee within six months after completing the inspection and evaluation process of their approval or disapproval of any proposed supplier. Alloy is not required to share the criteria for product or supplier approval that they deem confidential.
If a franchisee wishes to purchase from an unapproved supplier, they must submit a written request for approval. Alloy can require that their representatives inspect the supplier's facilities and that samples from the supplier be delivered either to them or to an independent laboratory for testing. Alloy also reserves the right to re-inspect the facilities and products of any approved supplier and to revoke their approval if the supplier fails to continue to meet any of their then-current standards.
A prospective Alloy franchisee should understand that they must reimburse Alloy for all costs related to evaluating a product or supplier that they propose, up to a maximum of $5,000 per request. Alloy may also revoke approval of a particular product or supplier. If Alloy notifies a franchisee in writing that their approval has been revoked, the franchisee must stop purchasing that product and/or stop purchasing from that supplier.