Is the Alloy transfer fee refundable if the transfer does not occur?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the transfer fee is nonrefundable. Specifically, a franchisee must pay Alloy a transfer fee of $10,000. This fee is nonrefundable, regardless of whether the transfer is completed.
This means that if an Alloy franchisee attempts to sell or transfer their franchise to another party, but the transfer falls through for any reason (e.g., the buyer doesn't meet Alloy's requirements, financing issues, or a change of heart), the franchisee will not receive a refund of the $10,000 transfer fee.
Franchise agreements often include non-refundable fees to cover the franchisor's administrative costs and efforts in processing applications, even if those applications are ultimately unsuccessful. Prospective Alloy franchisees should factor this non-refundable fee into their financial planning when considering a potential transfer of their franchise.