Alloy Personal Training Franchise

Financial Health Notes

Alloy Personal Training has consistently reported net losses over the past three years, with a net loss of $(63,535) in 2024, $(694,526) in 2023, and $(572,520) in 2022. The company also had negative working capital of approximately $(852,829) in 2024 and a growing members' deficit, reaching over $(2.3) million by the end of 2024. Although operating cash flow was positive in 2024, it significantly decreased from 2023. The FDD itself highlights Alloy Personal Training's financial condition as a risk, questioning its ability to provide services and support to franchisees.

Ongoing Support

Alloy provides ongoing support to its franchisees through various channels. This includes regular guidance and assistance on operations, new products or services, administrative procedures, and addressing operational issues, delivered via periodic virtual and in-person meetings, telephone, or written communications. Alloy maintains a Brand Development Fund for system-wide marketing and promotional programs. Franchisees are required to attend monthly meetings with their Alloy franchise business coach. Alloy offers periodic refresher training programs, which may be mandatory, typically annually and not exceeding five days, though franchisees are responsible for all associated expenses like travel and wages. Mandatory annual franchisee meetings or conventions are also held, for which franchisees pay a per-person fee and their own expenses. Alloy may also suggest or set pricing policies for services. Additionally, Alloy manages a system-wide website, intranet, and social media channels, providing franchisees with branded subpages, access to operational and marketing materials, and tools for communication and collaboration within the system. Alloy also provides access to branded social media pages/handles/assets, which franchisees must regularly update, and may conduct collective campaigns via local social media. Additional on-site assistance or training can be provided at the franchisee's request or Alloy's determination, with the franchisee covering the per diem fee and expenses.

Territory Size Requirements

Alloy Personal Training's Designated Area for a single unit franchise is a protected area with a population of at least 30,000 people. In suburban areas, this typically covers an approximate 2-mile radius from the authorized location, accounting for geographic features. For facilities in densely populated areas, the radius might be more limited, but the Designated Area will still maintain a minimum population of 30,000 people. These areas may be described using street boundaries or a map. For Area Development Agreements, the Development Territory size depends on the number of facilities committed and may be defined by contiguous zip codes, street, or county boundaries, or depicted on a map.