On whom is the addendum to the Alloy franchise agreement binding?

According to the 2025 FDD, the addendum to the Alloy franchise agreement is binding on both Alloy Personal Training, LLC, as the Franchisor, and the Franchisee. This is explicitly stated in multiple addenda included in the FDD. Specifically, the addenda for Virginia, South Dakota, and Minnesota state that both parties acknowledge having read and understood the addendum and consent to be bound by its terms. This ensures that both Alloy and the franchisee are legally obligated to adhere to the modifications and additions made to the standard franchise agreement as required by the specific state's regulations.

This requirement ensures that both parties are aware of and agree to the specific changes or additions to the franchise agreement mandated by state laws. For example, in Virginia, an addendum addresses the deferral of initial franchise fees until Alloy has met its pre-opening obligations. Similarly, addenda for South Dakota and Minnesota also address financial assurances required due to Alloy's financial condition, ensuring franchisees are protected.

For a prospective Alloy franchisee, this means carefully reviewing any state-specific addenda to fully understand their rights and obligations. It also highlights the importance of understanding the specific regulations in the state where the franchise will operate, as these can significantly impact the terms of the franchise agreement. The acknowledgment confirms that the franchisee is not only aware of these state-specific terms but also agrees to be legally bound by them, providing a layer of protection and clarity for both parties involved.