Can Alloy use the Brand Development Fund to solicit the sale of franchises?

According to the 2025 Alloy FDD, the Brand Development Fund cannot be used primarily to solicit the sale of franchises. Alloy will use the fund for regional or national advertising, publicity, and promotion related to its business. Alloy has the discretion to determine how the fund will be spent, including using it for creative concept production, marketing surveys, and test marketing.

Alloy has the right to direct all advertising activities, including creative concepts, materials, and media used, as well as their placement and allocation. Alloy also determines the composition of geographic and market areas for these activities and is not required to spend a specific amount in a franchisee's designated area. The fund aims to maximize general public recognition of Alloy's Proprietary Marks and patronage of Alloy Facilities.

Alloy is not obligated to ensure that fund expenditures in any geographic area are proportionate or equivalent to Brand Development Fee payments by franchisees in that area, or that any Facility will benefit directly or in proportion to the fees paid. Franchisees cannot reduce or eliminate their obligation to contribute to the fund if they do not derive a benefit. Alloy does not have a fiduciary obligation to franchisees regarding the fund's establishment, collection, control, or administration of Brand Development Fees.