Bottom line
- Total investment $299K – $541K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $387K/year (median $410K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- System growing at 533.3% CAGR over 3 years with 77 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Alloy unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Alloy units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$542K
on $2.7M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
Overview
About
Alloy franchisees typically operate fitness, wellness, or specialized training facilities serving local communities through class-based or membership models. Daily operations involve managing member relations, scheduling instructors, maintaining facilities, marketing services, and ensuring service quality across recurring weekly schedules.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Alloy presents elevated risk due to undisclosed profitability, Going Concern warning, and unsustainable hypergrowth masking potential franchisor financial distress.
Score breakdown · what drove the 54 / 100 rating
- 01HIGHGoing Concern warning indicates potential financial instability at franchisor level despite unit growth
- 02MEDNet Income not disclosed in Item 19 prevents accurate ROI analysis; franchisees cannot validate profitability claims
- 03MINORAggressive 153.3% YoY unit growth is unsustainable and suggests possible recruitment-driven model rather than organic expansion
- 04MINORAverage revenue of $386,914 against $298,650-$541,120 investment creates tight margin for profitability after 7% royalties and operating costs
- 05HIGHNo litigation disclosed but Going Concern flag suggests potential undisclosed disputes or financial distress
- 06MINORHigh franchise fee ($60,000) combined with non-disclosure of net income creates earnings visibility gap
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
84 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Alloy · FDD (2025) PDF