What does the Technology Fee for Alloy fund?
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, the Technology Fee is used to fund new and ongoing technology initiatives. These initiatives include technical support, database administration, internet marketing, and various corporate technology services. The Technology Fee is a weekly fee, the amount of which is set forth in the Data Sheet. According to the table in Item 23, the weekly technology fee is $220.00.
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 will begin when the software is set up and initiated to coincide with training. The monies from the technology fee will be administered by Alloy.
For a prospective franchisee, this means that a portion of their weekly payments will go towards maintaining and improving the technology infrastructure of the Alloy franchise system. It is important to note that Alloy has the right to increase this fee, although capped at 30% per year, which could impact the franchisee's operating costs. Franchisees should budget for potential increases in this fee when forecasting their expenses.