To whom are the training expenses paid when opening an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
NT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $60,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Rent – 3 Months (2) | $14,400- $31,800 | As arranged | As arranged | Landlord |
| Lease and Utility Security Deposits (3) | $4,000-$7,500 | As arranged | As arranged | Landlord and Utility Companies |
| Architect/Project | $10,000- | As arranged | As arranged | Preferred |
| Management (4) | $32,500 | Vendor | ||
| Leasehold | $95,240- | As arranged | As arranged | Contractor |
| Improvements (5) | $180,270 | |||
| Furniture, Fixtures and Equipment (6) | $38,000- $81,000 | As arranged | As arranged | Approved Suppliers |
| Signage (7) | $17,000- $24,000 | As arranged | As arranged | Approved Suppliers |
| Initial Inventory (8) | $250-$500 | As arranged | As arranged | Approved Suppliers |
| Permits and Licenses (9) | $1,000-$3,000 | As arranged | As arranged | Government Agencies |
| Insurance – 3 Months of Annual Premium (10) | $600-$1,800 | As arranged | As arranged | Insurance Companies |
| Grand Opening Marketing (11) | $30,000- $40,000 | As arranged | As arranged | Approved Suppliers or Us |
| Training Expenses | $1,660-$3,350 | As arranged | As arranged | Airline, Hotel, Restaurants, Employees, etc. |
| Computer System (13) | $4700-$6900 | As arranged | As arranged | Approved Suppliers |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| ---------------------------------- | ------------------------- | ---------------------- | ------------- | ------------------------------- |
| Professional Fees | $5,000-$10,000 | As arranged | As arranged | Attorney, Accountant |
| Office Supplies (14) | $300-$1,000 | As arranged | As arranged | Approved Suppliers |
| Miscellaneous (15) | $1,500-$2,500 | As arranged | As arranged | Approved Suppliers |
| Additional Funds – 3 Months (16) | $15,000- $55,000 | As arranged | As arranged | Va |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–25)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the training expenses, which range from $1,660 to $3,350, are paid to various entities. These include airlines, hotels, restaurants, and employees. This cost covers travel, lodging, meals, and wages for one trainee. The initial franchise fee covers the cost of initial training for up to three trainees.
For each additional trainee beyond the initial three, the franchisee must pay Alloy's then-current training fee. The estimate provided in the FDD helps prospective franchisees understand the potential costs associated with training staff, but it's important to note that actual costs may vary based on travel distance and accommodation choices.
Additionally, franchisees may need to obtain third-party training for CPR and AED use, which is not included in the estimated training expenses. Therefore, franchisees should budget accordingly and inquire about the current training fees for additional personnel and the costs associated with required third-party training to accurately assess their initial investment.