In Virginia, what must Alloy complete before receiving the initial franchise fee and other initial payments from a franchisee?

According to Alloy's 2025 Franchise Disclosure Document, franchisees in Virginia do not have to pay the initial franchise fee until Alloy has completed its pre-opening obligations under the franchise agreement. The Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates this deferral of payment. This requirement is reflected in an addendum to the franchise agreement specifically for Virginia franchisees.

This means that a prospective Alloy franchisee in Virginia will not be required to pay the initial franchise fee upfront. Instead, the payment is deferred until Alloy fulfills its responsibilities related to opening the franchise location. These pre-opening obligations would likely include site selection assistance, training, and providing initial equipment or inventory.

This arrangement protects the franchisee by ensuring that Alloy is committed to providing the necessary support before receiving the initial franchise fee. It also reduces the franchisee's initial financial burden, allowing them to allocate funds to other startup costs. This type of deferral is not standard across all franchises, as many franchisors require the initial fee upon signing the franchise agreement.