How are Alloy technology fees charged and earned?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 8. | | | | Technology Fee. The weekly technology fee is $220.00, which can be increased as set forth in | | | | subparagraph 9.D of the Franchise Agreement. |
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.
D. Alloy App. You must purchase a proprietary software application system that complies with our standards and requirements, including all future updates, supplements and modifications (the "Alloy App") and sign any related agreements that we require. The Alloy App is a tool for you to use in the operation of your Facility and not as a means for us to exercise control over the day-to-day operation of your Facility. The Alloy App and other future software and hardware that you are required to use in the operation of the Facility may include designated software used to manage and communicate with your coaches and clients through the personal profile you build. Through the Alloy App, you will be able to build specific, video driven programs for your clients, send messages to your clients, and track each client's results.
You may be required to license the proprietary software from us, an affiliate or a third party and you also may be required to pay a software licensing or user fee in connection with your use of the proprietary software. All right, title and interest in the software will remain with the licensor of the software. You shall not use or download any software on your computer unless it has been authorized by us in writing. In the event that you use or download any unauthorized software, you shall be liable for all damages and problems caused by the unauthorized software in addition to the other remedies provided under this Agreement. You acknowledge and agree that we will have full and complete access to the information and data entered and produced by the POS System. You must, at all times, have at the Facility Internet access with a form of high speed connection as we require and you must maintain an email account for the Facility.
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. Currently, this weekly technology fee is $220.00. Alloy uses these 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 no more than 30% per calendar year to recover increases in costs for these services.
The technology fee begins when the software is set up and initiated, coinciding with training. The monies collected from the technology fees are administered by Alloy. Franchisees are also required to purchase a proprietary software application system called the "Alloy App" that complies with Alloy's standards, including all future updates and modifications.
Franchisees may be required to license proprietary software from Alloy, its affiliates, or third parties, and may also be required to pay a software licensing or user fee in connection with the use of the proprietary software. Franchisees must also maintain Internet access with a high-speed connection and an email account for the Facility.