What is the weekly technology fee for an Alloy franchise, and can this fee be increased?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
om 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 term of the Franchise Agreement is $300,000.
| 7. | Initial Franchise Fee. Franchise Fee is $ | As stated in subparagraph 9.A of the Franchise Agreement, the Initial |
|---|---|---|
| 8. | ||
| Technology Fee. The weekly technology |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must pay a weekly technology fee of $220.00. This fee can be increased as outlined in subparagraph 9.D of the Franchise Agreement.
The Technology Fee is used by Alloy to fund new and ongoing technology initiatives, technical support, database administration, internet marketing, and various corporate technology services. Alloy retains the right to increase the Technology Fee, but the increase is capped at no more than 30% per calendar year. This increase is intended to help Alloy recover any rise in the costs of providing these technology services.
The fee commences once the software is set up and training begins. This ensures that franchisees are only charged once they can utilize the technology provided. It is important for prospective franchisees to review subparagraph 9.D of the Franchise Agreement to fully understand the conditions under which the technology fee may be increased and how these funds are managed by Alloy.