Under what conditions does Alloy charge a Daily Noncompliance Fee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
the date of this Disclosure Document.
-
- The Daily Noncompliance Fee is currently $100 per day that you remain out of compliance with the Franchise Agreement or any mandatory standard or procedure. The Daily Noncompliance Fee is payable via ACH immediately upon 24 hours' notice, and we reserve the right to continue charging it until you cure any applicable default. The Daily Fee is in addition to, and not in lieu of, any rights we have under the Franchise Agreement (including termination as set forth in the Franchise Agre
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a Daily Noncompliance Fee is charged when a franchisee is out of compliance with the Franchise Agreement or any mandatory standard or procedure. The fee is currently $100 per day of noncompliance, but Alloy reserves the right to change this amount at any time.
The Daily Noncompliance Fee is payable via ACH immediately upon 24 hours' notice. Alloy can continue charging the fee until the franchisee cures the default. This fee is in addition to any other rights Alloy has under the Franchise Agreement, including termination.
This means that if an Alloy franchisee fails to meet certain requirements outlined in the Franchise Agreement or doesn't adhere to mandatory standards, they will be charged $100 for each day they remain noncompliant. This fee serves as a penalty and an incentive for franchisees to promptly correct any issues and adhere to Alloy's standards. The fact that Alloy can change the fee amount adds an element of uncertainty for franchisees, as the cost of noncompliance could increase during the term of their agreement.