What actions can Alloy take if a franchisee fails to comply with the Development Schedule?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to either execute a Franchise Agreement or to open an Facility according to the dates set forth in this Agreement or otherwise fail to comply with the Development Schedule, we have the right to immediately terminate this Agreement pursuant to Section 7.B.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy has the right to immediately terminate the Area Development Agreement if a franchisee fails to either execute a Franchise Agreement or to open a facility according to the dates set forth in the agreement, or if they otherwise fail to comply with the Development Schedule.
This means that franchisees must strictly adhere to the Development Schedule outlined in their agreement. This schedule includes specific dates for executing Franchise Agreements and opening facilities. Failure to meet these deadlines can result in the termination of the Area Development Agreement.
This provision underscores the importance of careful planning and execution for Alloy franchisees. Franchisees should ensure they have the resources and capabilities to meet the Development Schedule to avoid potential termination of their agreement. The franchisee is obligated to open all facilities on the dates set forth in the Development Schedule, regardless of any greater investment that may be required.