Under what circumstances is a payment considered delinquent to Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
nts that you owe to us or to our affiliates will bear interest at the rate of 12% per annum or the maximum contract rate of interest permitted by governing law, whichever is less, from and after the date of accrual. In addition to interest charges on late Royalty Fee and Brand Development Fund Fee payments, you must pay to us a service charge of $100 for each delinquent report or payment that you owe to us under this Agreement. A payment is delinquent for any of the following reasons: (i) we do not receive the payment on or before the date due; or (ii) there are insufficient funds in your bank account to collec
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a payment is considered delinquent under specific circumstances. Alloy franchisees are obligated to pay Royalty Fees and Brand Development Fund Fees, and late payments incur interest charges. Additionally, Alloy charges a $100 service fee for each delinquent report or payment.
Specifically, a payment is considered delinquent if Alloy does not receive it by the due date. It is also considered delinquent if there are insufficient funds in the franchisee's bank account to cover the total payment when Alloy attempts to collect it on or after the due date.
This means that franchisees must ensure payments are both sent and fully collectible by the due date to avoid these charges. The $100 service charge is not considered a penalty or interest but is intended to compensate Alloy for the increased administrative and management costs associated with handling late payments.