Under what circumstances would an Alloy franchisee need to pay for additional or refresher in-person training or assistance?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Refurbishment of Franchised Business | Will vary under the circumstances | As incurred | Payable to approved suppliers. You must regularly clean and maintain your Facility and its equipment. We may require you to remodel or redecorate your Facility to meet our then current image for all Alloy Facilities. We will not require you to remodel or redecorate your Facility more frequently than every five years. General refurbishment of your Facility is in addition to technology and equipment upgrades that we may require you to make |
| Mystery Shopper Service | $150 per mystery shop | As incurred | We may require you to participate in our mystery shopper program. Payable to the mystery shopper service |
| Prohibited Product or Service Fee | $250 per day | On demand, if incurred | Payable if you offer any product or service at or from your Facility that we have not approved |
| Search Area/Territory Change for Franchise Agreement or Development Agreement | $2000 | Upon demand, via ACH or wire transfer. | Payable if you wish to change your initial search area/territory as described in your Franchise Agreement or Development Agreement, requiring a written amendment to one or both agreements. |
| Daily Noncompliance Fee | Currently $100 per day that you are out of compliance, but we reserve the right to change this amount at any time. | Upon demand, via ACH. | See Note 4 |
| Product or Supplier Evaluation | Reimbursement of our expenses, up to $5,000 per request | As incurred | If you request that we evaluate a new product or supplier for the System |
| Management Fee | 10% of Gross Sales, plus expenses | As incurred | We have the right to step in and manage your Franchised Business for you in certain circumstances, including your prolonged absence, death or disability. We will charge a management fee if we manage your Facility, and you must reimburse our expenses |
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
Based on the 2025 Alloy Franchise Disclosure Document, there are several circumstances under which a franchisee may incur additional fees, though none are explicitly labeled as fees for "additional or refresher in-person training or assistance." However, several fees could potentially cover costs associated with additional support or training. For example, if a franchisee fails to meet required standards or procedures, they may be subject to a Daily Noncompliance Fee of $100 per day until the issue is resolved. This noncompliance could stem from a lack of proper training or adherence to Alloy's operational guidelines, indirectly necessitating further training or assistance.
Additionally, if Alloy steps in to manage a franchised business due to the franchisee's prolonged absence, death, or disability, a Management Fee of 10% of Gross Sales plus expenses will be charged. While not a training fee, this management oversight might include retraining staff or implementing new procedures, the costs of which would be borne by the franchisee. Furthermore, if a franchisee requests Alloy to evaluate a new product or supplier, they must reimburse Alloy's expenses, up to $5,000 per request. This evaluation process could involve training related to the new product or supplier, adding to the overall cost.
While the FDD does not explicitly detail fees for refresher training, franchisees should be aware of these potential costs related to non-compliance, management intervention, and product/supplier evaluations, as they may indirectly cover aspects of additional training or support. Prospective franchisees should clarify with Alloy under what specific circumstances additional training fees may be applied and how they can avoid incurring such costs through proactive management and adherence to brand standards.