Under what conditions can Alloy terminate the Brand Development Fund?

According to Alloy's 2025 Franchise Disclosure Document, Alloy reserves the right to terminate the Brand Development Fund at any time by providing notice to franchisees. If Alloy terminates the fund, any remaining money will be used for advertising and promotion or returned to the contributors on a pro rata basis. Alloy also has the right to reinstate the fund at any time and any reinstated fund will be maintained as previously described.

This means that Alloy franchisees are subject to the risk that the Brand Development Fund, which they are required to contribute to via a percentage of gross sales, could be terminated at any time. While the remaining funds must be used for advertising or returned to franchisees, there is no guarantee that the fund will continue to exist or benefit franchisees in the long term.

This clause gives Alloy significant flexibility and control over the Brand Development Fund. While the FDD states that Alloy may reinstate the fund at any time, franchisees should be aware that there is no obligation for Alloy to do so. Prospective franchisees should consider the potential impact of the fund's termination on their business and marketing strategies.