What action must an Alloy developer take regarding assumed names containing 'Alloy' or Alloy trademarks upon termination, unless permitted by a Franchise Agreement?

According to Alloy's 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, a developer must take specific actions regarding assumed names. Unless specifically permitted under a then-effective Franchise Agreement, the developer must take necessary steps to cancel or assign to Alloy (or its designee) any assumed name or equivalent registration that includes the name "Alloy" or any of its trademarks.

Furthermore, the developer is required to provide Alloy with satisfactory evidence of compliance with this obligation within 30 days after the termination or expiration of the Development Agreement. This ensures that the developer ceases using Alloy's brand identity and trademarks after the agreement ends, preventing potential confusion or misuse of the brand.

This requirement is standard practice in franchising to protect the brand's integrity and prevent unauthorized use of trademarks by former franchisees or developers. It is crucial for prospective Alloy developers to understand this obligation, as failure to comply could result in legal consequences or disputes with Alloy. Developers should carefully review the terms of the Franchise Agreement to understand any specific permissions or exceptions related to the use of Alloy's trademarks after termination.