Does the Alloy Area Development Agreement include a Development Schedule as an appendix?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
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- Area Development Agreement (including Appendices A (Data Sheet), B (Development Schedule), C (Development Territory) and D (Acknowledgment Addendum)
APPENDIX B
DEVELOPMENT SCHEDULE
You acknowledge and agree that a material provision of the Area Development Agreement is that the following number of ALLOY Facilities must be opened and continuously operating in the Development Territory in accordance with the following Development Schedule:
| Facility Number | Date by Which Franchise Agreement Must be Signed | Date by Which the Facility Must be Opened and Continuously Operating for Business in the Territory | Cumulative number of Facilities Required to be Open and Continuously Operating for Business in the Development Territory as of the Date in Preceding Column |
|---|---|---|---|
| 1 | Date of this Agreement | Within 1 year of Effective Date | 1 |
| 2 | Within 1 year of signing this Agreement | Within 2 years of signing this Agreement | 2 |
| 3 | Within 2 years of signing this Agreement | Within 3 years of signing this Agreement | 3 |
For purposes of determining compliance with the above Development Schedule, only the Facilities actually open and continuously operating for business in the Development Territory as of a given date will be counted toward the number of Facilities required to be open and continuously operating for business.
Source: Item 22 — CONTRACTS (FDD page 69)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Area Development Agreement does include a Development Schedule as Appendix B. The Area Development Agreement also includes Appendices A (Data Sheet), C (Development Territory) and D (Acknowledgment Addendum).
The Development Schedule outlines the required number of Alloy facilities that must be opened and continuously operating within the Development Territory. The schedule specifies deadlines for signing the Franchise Agreement and for opening each facility. For example, the first facility's Franchise Agreement must be signed by the date of the Area Development Agreement, and it must be open within one year of the effective date. The second facility's Franchise Agreement must be signed within one year of signing the Area Development Agreement, and it must be open within two years of signing the agreement. The third facility's Franchise Agreement must be signed within two years, and it must be open within three years of signing the agreement.
Alloy emphasizes that compliance with the Development Schedule is determined by the number of facilities actually open and continuously operating for business in the Development Territory as of a given date. This means that merely signing a lease or beginning construction does not count towards meeting the development obligations; only fully operational facilities are considered.