What were the total franchise fees Alloy collected in 2023?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Franchises sold | 51 | 70 | 30 |
| Franchises purchased | - | - | - |
| Franchised outlets in operation | 76 | 30 | 12 |
| Affiliate-owned outlets in operation | 1 | 1 | 1 |
You must pay the fees described below and comply with the following provisions:
- A.
Initial Franchise Fee.
You must pay us an Initial Franchise Fee in the amount of set forth on the Data Sheet.
Pursuant to the structured form of the franchising arrangement, the Company collects brand fund fees of 2% of franchisees' reported sales. These funds are spent solely on advertising and related expenses for the benefit of the franchisees with a portion designated to offset the Company's administrative costs to administer the funds, all at the discretion of the Company. Funds collected and not yet expended on the franchisees' behalf totaled $403,344 and $185,052 as of December 31, 2024 and 2023, respectively.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Alloy does not explicitly state the total amount of franchise fees collected in 2023. However, it does provide some related information.
According to the FDD, Alloy sold 70 franchises in 2023. The document also mentions that franchisees must pay an initial franchise fee, with the specific amount set forth on the Data Sheet. Without knowing the exact initial franchise fee outlined on the Data Sheet, it is impossible to calculate the total initial franchise fees collected.
Additionally, Alloy collects brand fund fees of 2% of franchisees' reported sales. The funds collected and not yet expended on the franchisees' behalf totaled $185,052 as of December 31, 2023. This figure represents unspent brand fund fees, not total franchise fees.
To determine the total franchise fees collected by Alloy in 2023, a prospective franchisee should ask the franchisor for clarification on the initial franchise fee amount and the total amount of initial franchise fees and other fees collected during that year.