What was the total amount of royalties collected by Alloy in 2024?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor, fully superseding any and all prior agreements or understandings between the parties pertaining to the subject matter of this Addendum. This Addendum may only be amended by written agreement duly executed by each party.
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues: | ||||
| Franchise fees | $1,384,305 | $853,791 | $239,379 | |
| Technology fees | 769,849 | 305,129 | 127,112 | |
| Royalties | 1,207,992 | 443,042 | 196,002 | |
| Brand development fund fees | 368,345 | 143,385 | 65,334 | |
| Retail sales | 48,815 | 27,851 | 20,717 | |
| Vendor rebate sales | 221,538 | 92,353 | 45,199 | |
| Sales assistant income | 12,000 | 75,545 | 6,750 | |
| Other revenues | 20,594 | 6,042 | 415 | |
| Total revenues | 4,033,438 | 1,947,138 | 700,908 | |
| Cost of goods sold | 32,196 | 18,220 | 14,944 | |
| Gross profit | 4,001,242 | 1,928,918 | 685,964 | |
| Selling, general and administrative expenses | 4,064,777 | 2,623,444 | 1,258,484 | |
| Net loss | (63,535) | (694,526) | (572,520) | |
| Members' deficit - beginning | (2,027,100) | (958,691) | (328,199) | |
| Members' contributions | - | 8,921 | 465,992 | |
| Members' distribu |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the total royalties collected by Alloy in 2024 amounted to $1,207,992. This figure is part of the revenues that Alloy earns from its franchisees. Royalties are typically a percentage of gross sales, paid regularly by franchisees to the franchisor. This revenue stream is a critical component of Alloy's financial health, as it reflects the ongoing performance and sales volume of its franchise locations.
For a prospective Alloy franchisee, understanding the royalty structure is crucial. The royalty payments contribute to Alloy's ability to support the franchise system through ongoing services, brand development, and operational improvements. The amount of royalties collected can be an indicator of the overall success and growth of the Alloy franchise system. A higher royalty income for the franchisor often correlates with higher sales volumes across the franchise network.
It's important to note that while this figure represents the total royalties collected by Alloy, it does not specify the royalty rate or how it is calculated. Franchisees should refer to the franchise agreement for detailed information on royalty rates, payment schedules, and any conditions that may affect royalty obligations. Additionally, prospective franchisees should inquire about how royalty fees are utilized to support the franchise system and benefit individual franchisees.