Under what conditions can Alloy charge a Daily Noncompliance Fee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
liance with the Franchise Agreement or any mandatory standard or procedure. The Daily Noncompliance Fee is payable via ACH immediately upon 24 hours' notice, and may be charged until you cure any applicable default. The Daily Noncompliance Fee is in addition to, and not in lieu of, any rights we
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy FDD, Alloy can charge a Daily Noncompliance Fee, which as of the date of the agreement, is $100. However, the FDD states that this amount is subject to change at any time.
The Daily Noncompliance Fee is in addition to any other rights Alloy has under the agreement, including termination for defaults. This means that Alloy can pursue other remedies for noncompliance in addition to charging the fee.
This fee serves as a financial penalty for failing to meet certain requirements or standards set forth in the franchise agreement. It incentivizes franchisees to adhere to Alloy's operational guidelines and maintain brand standards. Franchisees should be aware that noncompliance can result in daily accumulating fees, potentially leading to significant financial burdens if the issues are not promptly addressed. It is important to note that the franchisor reserves the right to modify the amount of the Daily Noncompliance Fee at any time, so franchisees need to stay informed of any changes.