Is the 'ACKNOWLEDGEMENT OF PRINCIPAL' section mandatory for all Alloy franchisees?

Based on the 2025 Alloy Franchise Disclosure Document, the requirement for an 'Acknowledgement Addendum' varies by state. Specifically, for franchisees in Illinois, the FDD states that 'The Acknowledgment Addendum attached to the Area Development Agreement (and specifically stating that it is not for use in the State of Illinois) is unenforceable under Illinois law because it may have the effect of forcing a franchisee to waive or release certain rights that you as a franchisee have under the Illinois Franchise Disclosure Act, 815 IL § 705.'

This indicates that while an acknowledgement addendum might be standard in Alloy's agreements, it is not applicable in Illinois due to state-specific franchise laws designed to protect franchisees. The Illinois addendum ensures that franchisees are not inadvertently waiving their rights under the Illinois Franchise Disclosure Act.

Prospective Alloy franchisees should carefully review any addenda or acknowledgements with legal counsel to ensure they understand their rights and obligations, particularly concerning waivers or releases of liability. The enforceability of such clauses can differ significantly depending on the franchisee's location.