Under what circumstances might Alloy require the franchisee to pay a training fee for a trainee re-taking the training program?

According to Alloy's 2025 Franchise Disclosure Document, if a trainee does not complete the initial training program to Alloy's satisfaction, they will be given the opportunity to re-take the training program. Alternatively, the franchisee can designate a new Operating Partner, General Manager/Head Trainer, or Trainer to re-take the training program. However, Alloy reserves the right to require the franchisee to pay the then-current training fee for any trainee who is re-taking the training program.

This means that if the initial trainee fails to meet Alloy's standards during the training, the franchisee might incur additional costs to have the same trainee or a replacement trainee re-attend the program. This could impact the franchisee's budget and profitability, especially if multiple trainees require re-training.

Furthermore, if a trainee fails to complete the training program a second time, Alloy has the right to terminate the Franchise Agreement. In this case, the franchisee will not receive a refund of any portion of the initial franchise fee. This highlights the importance of ensuring that trainees are well-prepared and capable of completing the training program successfully to avoid potential financial losses and termination of the franchise agreement.