How can the addendum to the Alloy franchise agreement be amended?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This Rider to State Addendum to ALLOY® Franchise Disclosure Document ("FDD"), Franchise Agreement and/or Area Development Agreement (if applicable) is entered into by and between Alloy Personal Training, LLC, 2500 Old Alabama Road, Suite 24, Roswell, Georgia 30076 ("we" or "us") and ("you"). A. This Rider is being signed because you are a resident of one of the states listed in the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of one or more ALLOY® businesses in the Applicable Franchise Registration State. B. We and you have contemporaneously herewith entered into a Franchise Agreement (the "Agreement") and/or an Area Development Agreement (if applicable) and wish to amend the Agreement as provided herein. NOW, THEREFORE, for and in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the FDD and Agreement and Area Development Agreement (if applicable) are hereby amended as follows: 1. The following language is hereby added to the end of the FDD, Agreement and Area Development Agreement (if applicable): "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." 2. Except as provided in this Rider, the Agreement and Area Development Agreement remains in full force and effect in accordance with its terms. This Rider shall be effective only to the extent that the jurisdictional requirements of the franchise law of the Applicable Franchise Registration State are met independently without reference to this Rider. YOU: WE: ALLOY PERSONAL TRAINING, LLC
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
The 2025 Alloy Franchise Disclosure Document (FDD) includes addenda that pertain to specific states and are designed to comply with those states' franchise regulations. These addenda modify the franchise agreement as necessary to align with state laws.
For instance, the Virginia addendum addresses the deferral of initial franchise fees until Alloy has met its pre-opening obligations, as mandated by the Virginia State Corporation Commission. Similarly, the Minnesota addendum ensures Alloy covers the defense of trademark infringement claims and provides franchisees with specific termination and nonrenewal rights as per Minnesota law. The Illinois addendum modifies the venue for legal actions and clarifies the governing law, while the South Dakota addendum also addresses the deferral of fees due to Alloy's financial condition.
These addenda explicitly state that except as amended within the addendum itself, the original franchise agreement remains in full effect. This indicates that the terms of the addendum take precedence over conflicting terms in the original agreement but only to the extent necessary to comply with state law. The Alloy FDD also includes a rider applicable to multiple states, clarifying that no statement signed by the franchisee can waive claims under state franchise law or disclaim reliance on franchisor statements. This rider further reinforces the protection of franchisees' rights under applicable state laws, superseding any conflicting terms in other documents related to the franchise agreement.
In practical terms, these addenda ensure that Alloy's franchise agreements comply with specific state regulations, providing franchisees with additional rights and protections as required by law. Prospective franchisees should carefully review the addendum specific to their state to understand how the standard franchise agreement is modified to comply with local laws. This review is crucial for understanding the full scope of their rights and obligations under the franchise agreement.