Can the weekly technology fee for an Alloy franchise be increased?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Technology Fee. The weekly technology fee is $220.00, which can be increased as set forth in subparagraph 9.D of the Franchise Agreement.
You must pay to us each week a technology fee (the "Technology Fee") in an amount set forth in the Data Sheet.
We will use these fees to fund new and ongoing technology initiatives, as well as technical support and database administration, internet marketing and various corporate technology services.
We reserve the right to increase the Technology Fee by an amount of no more than 30% per calendar year in order to recover in part any increase in costs for such services.
The monies will be administered by us.
The fee will begin when the software is set up and initiated to coincide with training.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the weekly technology fee is initially set at $220.00. However, Alloy retains the right to increase this fee.
The FDD specifies that Alloy can increase the Technology Fee to recover increases in costs for technology initiatives, technical support, database administration, internet marketing, and various corporate technology services. This means that as Alloy's expenses for providing these technology-related services rise, they may pass those costs onto franchisees.
However, there is a limit to how much Alloy can increase the fee. The FDD states that Alloy can only increase the Technology Fee by no more than 30% per calendar year. This provides some predictability for franchisees, as they know the maximum potential increase they could face in any given year. The Technology Fee will begin when the software is set up and initiated to coincide with training.