What does the Technology Fee for an Alloy franchise cover?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay to us each week a technology fee (the "Technology Fee") in an amount set forth in the Data Sheet.
We will use these fees to fund new and ongoing technology initiatives, as well as technical support and database administration, internet marketing and various corporate technology services.
We reserve the right to increase the Technology Fee by an amount of no more than 30% per calendar year in order to recover in part any increase in costs for such services.
The monies will be administered by us.
The fee will begin when the software is set up and initiated to coincide with training.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must pay a weekly Technology Fee, the amount of which is specified in the Data Sheet. Alloy uses these Technology Fees to fund new and ongoing technology initiatives, technical support, database administration, internet marketing, and various corporate technology services.
Alloy retains the right to increase the Technology Fee by up to 30% per calendar year to cover increased costs for these services. The Technology Fee is administered by Alloy, and the fee commences when the software is set up and initiated to coincide with training.
This means that as an Alloy franchisee, you can expect to contribute to the brand's technology infrastructure and support through this weekly fee. While this ensures access to necessary technology and support, franchisees should be aware of potential fee increases and factor them into their financial planning. It is common in franchising for brands to charge technology fees to maintain and improve their systems, but the specifics of what the fee covers and the potential for increases can vary significantly.