In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Alloy Personal Training franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Alloy Personal Training franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Alloy Personal Training outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Alloy Personal Training franchise opportunity

Section V – Presentation and analysis of Alloy Personal Training’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 annual revenue, average monthly membership, average monthly revenue per member, and average monthly membership retention percentage for the 1 Alloy Personal Training affiliate operating facility and 9 Alloy Personal Training franchisee facilities that were open for the entire 2023 calendar year

• 2023 pricing tiers and membership percentage in each times per week attendance category for the 1 Alloy Personal Training affiliate operating facility and 9 Alloy Personal Training franchisee facilities that were open for the entire 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the Alloy Personal Training franchise opportunity (exclusive content for Platinum subscribers)

Section I – Alloy Personal Training Franchise Costs

• Alloy Personal Training franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Rent – 3 Months:  $14,400 to $31,800
• Lease and Utility Security Deposits:  $4,000 to $7,500
• Architect/Project Management:  $10,000 to $27,500
• Leasehold Improvements:  $37,500 to $146,200
• Furniture, Fixtures, and Equipment:  $18,000 to $92,000
• Signage:  $12,000 to $43,200
• Initial Inventory:  $250 to $500
• Permits and Licenses:  $1,000 to $3,000
• Insurance – 3 Months of Annual Premium:  $600 to $1,500
• Grand Opening Marketing:  $30,000 to $40,000
• Training Expenses:  $1,660 to $3,350
• Computer System:  $2,150 to $3,000
• Professional Fees:  $5,000 to $10,000
• Office Supplies:  $300 to $1,000
• Miscellaneous:  $1,500 to $2,500
• Additional Funds – 3 Months:  $15,000 to $55,000
• Total Estimated Alloy Personal Training Franchise Costs:  $213,360 to $528,050

Section II – Alloy Personal Training’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Alloy Personal Training’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Royalty Fee:  7% of Gross Sales
• Brand Development Fund Fee:  2% of Gross Sales
• Local Marketing:  2-8% of Gross Sales
• Advertising Groups/Cooperatives:  1% of Gross Sales, unless Alloy or the cooperative members (if a cooperative is formed) approve a higher amount

Section III – Number of Franchised and Company-Owned Alloy Personal Training Outlets

Franchised

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  2
• Net Change:  +1

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  12
• Net Change:  +10

2023

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  30
• Net Change:  +18

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Alloy Personal Training Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Alloy Personal Training Franchise (Item 19, 2024 FDD)

• This financial performance representation discloses historical information regarding the 2023 Measurement Period (January 2023 to December 2023) for (i) Part 1 – the average monthly revenue, monthly membership, revenue per member and actual monthly retention percentage for one Affiliate Operating Facility and nine Franchisee Facilities open for the entire 2023 Measurement Period, (ii) Part 2 – monthly membership pricing and member attendance for one Affiliate Operating Facility and nine Franchisee Facilities open for the entire 2023 Measurement Period and (iii) Part 3 – memberships tier pricing for one Affiliate Operating Facility and 30 Franchisee Facilities open as of December 31, 2023 (even if the Facilities were not open for the full 2023 Measurement Period, and pre-opening membership numbers for facilities that opened in 2023 but were not open for the full 2023 Reporting Period.

• Alloy has presented the information in Part 1 by showing the information for one Affiliate Operating Facility and nine Franchisee Facilities that were open for 12 months of 2023. As of the end of the 2023 Measurement Period, Alloy had 30 Franchisee Facilities open and operating, but other than the nine Franchisee Facilities included in this Item 19, none of the other Franchisee Facilities of the size/type being offered as part of this Disclosure Document has been open for longer than 12 months.

• The Affiliate Operating Facility, Alloy Haynes Bridge Village, GA (HBV) relocated to a new location in October 2022 and was open for all 12 months of 2023. HBV has been in operation since September 1992.

• The nine Franchisee Facilities are located in (i) Summerfield, North Carolina, (ii) Charlotte Blakeney/Charlotte, NC, (iii) Holladay/Salt Lake City, Utah, (iv) Billings, Montana, (v) Colony/Charlotte, NC, (vi) Dunwoody, GA, (vii) West Las Vegas, NV, (viii) Casselberry, FL, and (iv) Fairlawn, OH.

• The Summerfield location opened in July 2020, operates out of approximately 2,800 square feet and was open the entire 2023 Measurement Period. The Charlotte Blakeney/Charlotte, NC location opened in July 2021 and operates out of an approximately 2,800 sq ft facility and was opened the entire 2023 Measurement period. The remainder of the Franchisee Facilities are approximately 1,600 square feet and were open the full 12-month 2023 Reporting Period. Members sign monthly membership agreements for 5 sessions/up to 9 sessions/or up to 13 sessions per month.

Part 1 – Revenue, Memberships, and Membership Retention

A. 2023 Total Revenue

• HBV (Opened 2019):  $467,806
• Summerfield (Opened 2020):  $381,823
• Charlotte Blakeney (Opened 2021):  $682,070
• Holladay (Opened 2022):  $430,792
• Billings (Opened 2022):  $487,610
• Charlotte Colony (Opened 2022):  $520,335
• Dunwoody (Opened 2022):  $413,515
• West Las Vegas (Opened 2022):  $247,385
• Casselberry (Opened 2022):  $150,806
• Fairlawn (Opened 2022):  $294,602

B. Average Membership by Month

• HBV:  122
• Summerfield:  127
• Charlotte Blakeney:  208
• Holladay:  116
• Billings:  140
• Charlotte Colony:  145
• Dunwoody:  121
• West Las Vegas:  82
• Casselberry:  44
• Fairlawn:  83

C. Average Revenue per Member

• HBV:  $319.62
• Summerfield:  $250.12
• Charlotte Blakeney:  $272.82
• Holladay:  $308.50
• Billings:  $289.68
• Charlotte Colony:  $298.84
• Dunwoody:  $283.87
• West Las Vegas:  $252.94
• Casselberry:  $282.62
• Fairlawn:  $295.63

D. Average Membership Retention

• HBV:  96%
• Summerfield:  92%
• Charlotte Blakeney:  90%
• Holladay:  92%
• Billings:  89%
• Charlotte Colony:  92%
• Dunwoody:  93%
• West Las Vegas:  87%
• Casselberry:  84%
• Fairlawn:  91%

• The monthly retention percentage is determined each month as follows:

• A + B – C = D
• A = # of members at beginning of month
• B = # of new members
• C = # of terminated members
• D = net # of members at end of month
• (D – B)/A x 100 = monthly retention %

• Example: if you start with 100 members in a club’s first month, and factor in 20 new members and 7 members who canceled their membership agreements, you then are left with 113 members at the end of the month. Using the numbers above, the equation should look like this: (113-20)/100) x 100 = 93% of members are still active. In this regard, the monthly retention percentage is 93%.

Part 2 – Pricing and Member Attendance

Alloy Pricing Tiers

Tier 1

• 1X/Week – Month:  $199 monthly/$50 per session
• 2X/Week:  $249 monthly/$31 per session
• 3X/Week:  $299 monthly/$25 per session

Tier 2

• 1X/Week – Month:  $199 monthly/$50 per session
• 2X/Week:  $319 monthly/$40 per session
• 3X/Week:  $359 monthly/$30 per session

Tier 3

• 1X/Week – Month:  $259 monthly/$60 per session
• 2X/Week:  $399 monthly/$50 per session
• 3X/Week:  $479 monthly/$40 per session

Tier 4

• 1X/Week – Month:  $279 monthly/$70 per session
• 2X/Week:  $479 monthly/$60 per session
• 3X/Week:  $599 monthly/$50 per session

• Pricing tiers that a franchisee selects are often based on market rent and other related factors. Alloy will work with a franchisee to select the appropriate tier.

• Tier 1 is reserved for more rural markets and similar circumstances.

Membership by Tiers (2023)

HBV

• 5X:  9%
• 9X:  46%
• 13X:  46%

Summerfield

• 5X:  6%
• 9X:  53%
• 13X:  42%

Charlotte Blakeney

• 5X:  13%
• 9X:  59%
• 13X:  28%

Holladay

• 5X:  6%
• 9X:  48%
• 13X:  46%

Billings

• 5X:  10%
• 9X:  61%
• 13X:  29%

Charlotte Colony

• 5X:  11%
• 9X:  51%
• 13X:  38%

Dunwoody

• 5X:  11%
• 9X:  52%
• 13X:  37%

West Las Vegas

• 5X:  7%
• 9X:  47%
• 13X:  47%

Casselberry

• 5X:  9%
• 9X:  53%
• 13X:  38%

Fairlawn

• 5X:  11%
• 9X:  60%
• 13X:  29%

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – Alloy Personal Training Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️