Under what circumstances might Alloy require a franchisee to use a designated accountant or bookkeeping service?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We also reserve the right to require you to use a designated accountant or bookkeeping service if you do not provide required financial reports and statements when they are due, or your financial reports and statements are not accurate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy reserves the right to mandate that a franchisee use a designated accountant or bookkeeping service under specific circumstances. This measure is contingent upon the franchisee's compliance with financial reporting requirements.
Specifically, Alloy may require a franchisee to use a designated accountant or bookkeeping service if the franchisee fails to provide the necessary financial reports and statements when they are due. Additionally, Alloy may impose this requirement if the financial reports and statements submitted by the franchisee are found to be inaccurate.
This provision ensures that Alloy can maintain accurate and timely financial oversight of its franchise network. For a prospective franchisee, this highlights the importance of maintaining meticulous financial records and adhering to Alloy's reporting deadlines. Failure to do so could result in the added expense and potential disruption of being required to use a designated service provider.