What is the weighted-average remaining lease term in years for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Less: current portion | (67,060) | ||||||
|---|---|---|---|---|---|---|---|
| Lease liabilities, net of current portion | $595,429 | ||||||
| Cash paid for amounts included in measuring operating | |||||||
| --- | --- | --- | |||||
| lease liabilities: | |||||||
| Operating cash flows from operating leases | $87,096 | $87,096 | |||||
| Average operating lease terms and discount rates were | |||||||
| --- | --- | --- | |||||
| as follows: | |||||||
| Weighted-average remaining lease term (in years) | 8 | 9 | |||||
| Weighted-average discount rate (%) | 3.79 | 3.79 | |||||
| This Rider to State Addendum to ALLOY® Franchise Disclosure Document (“FDD”), Franchise Agreement | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| and/or Area Development Agreement (if applicable) is entered into by and between Alloy Personal | |||||||
| Training, LLC, | 2500 | Old Alabama | Road, Suite | 24, Roswell, Georgia | 30076 | (“we” or “us”) | and |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the weighted-average remaining lease term is between 8 and 9 years. This figure represents the average time left on the leases for all Alloy franchise locations, considering the length of each lease and its relative contribution to the overall portfolio.
For a prospective Alloy franchisee, this information is crucial for understanding the typical lease commitments associated with operating a franchise. A longer remaining lease term could provide stability and predictability in terms of location and rental costs. However, it also represents a longer-term financial obligation. Conversely, a shorter remaining lease term might offer more flexibility but could also entail the risk of needing to renegotiate or relocate sooner.
It's important to note that the 8-9 year figure is a weighted average, meaning that some individual franchise locations may have lease terms significantly longer or shorter than this range. A prospective franchisee should inquire about the specific lease terms available at their desired location and factor this into their financial projections and business plan. Understanding the lease obligations is a critical part of assessing the overall financial viability and risk associated with an Alloy franchise.