What is the transfer fee for an Alloy franchise as referenced in subparagraph 11.C?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
val will not be withheld unreasonably. You immediately must notify us of any proposed transfer and must submit promptly to us the application for consent to transfer and any other required documents and information. Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void, your interest in this Agreement will be voluntarily abandoned, and it will provide us with the right to elect either to deem you in default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfe
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee of $10,000 to Alloy if they want to transfer their franchise. This fee is referenced in subparagraph 11.C of the franchise agreement.
The transfer fee is nonrefundable, regardless of whether the transfer is completed. This means that if a franchisee attempts to transfer their Alloy franchise but the transfer falls through for any reason, the $10,000 fee will not be returned.
If a franchisee attempts to transfer their franchise without Alloy's prior written consent, or if they do not comply with the terms of the franchise agreement, the attempted transfer will be void. In this case, Alloy has the right to either terminate the agreement or collect a transfer fee equal to two times the standard transfer fee, which would be $20,000.