When is the weekly Royalty Fee due for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ng authority are deducted from Gross Sales.
On Monday of each week, you must provide us with a report of your Alloy Facility's Gross Sales for the previous week ending Sunday. We may electronically access your computer system to obtain this information, but you must still provide us with this report.
If any state imposes a sales or other tax on the Royalty Fees, then we have the right to collect this tax from you.
For any year you fail to achieve the minimum annual Gross Sales, you must pay any shortfall of royalty fees for each failure to achieve the minimum annual Gross Sales. The shortfall amount equals 7% of the difference between your actual Gross Sales for the year and the minimum annual Gross Sales for that year. The required minimum annual Gross Sales for the first year of operation from the first day you open the Facility for business is $240,000. The second year will be the 12 month period beginning with your first anniversary date from the opening of the facility (this 12 month period is referred to as Year 2). The minimum annual Gross Sales for Year 2 and for each following year through the end of the initial
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are required to submit a report of their Alloy Facility's Gross Sales from the previous week each Monday. This report must cover sales ending on the preceding Sunday. While Alloy may electronically access the franchisee's computer system to obtain this information, the franchisee is still responsible for providing the report. The FDD does not explicitly state when the royalty fee is due, but it implies that it is due at the same time as the gross sales report, which is each Monday.
It is important to note that if any state imposes a sales or other tax on the Royalty Fees, Alloy retains the right to collect this tax from the franchisee. Additionally, if a franchisee fails to achieve the minimum annual Gross Sales, they must pay a shortfall of royalty fees. This shortfall is calculated as 7% of the difference between the franchisee's actual Gross Sales for the year and the minimum annual Gross Sales for that year. The required minimum annual Gross Sales for the first year of operation is $240,000, and for the second year and each following year through the end of the initial term of the Franchise Agreement, it is $300,000.
Prospective Alloy franchisees should clarify with the franchisor the exact due date for the weekly royalty fee to ensure timely payments and avoid any potential late fees or penalties. Understanding the reporting requirements and the implications of not meeting the minimum annual Gross Sales is crucial for managing the financial aspects of the franchise.