Where must the Authorized Location for an Alloy franchise be located?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
designs, color schemes and image we authorize you to use in the operation of the Facility from time to time.
GRANT OF LICENSE
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- The following provisions control with respect to the license granted hereunder:
- A. Facility. We grant to you the right and license to establish and operate a Facility identified by the ALLOY Trademarks or such other marks as we may direct, at the location identified on the Data Sheet, which location must be designated within 90 days from the date of this Agreement (the "Authorized Location"). The Authorized Location must be located within the area defined in the Data Sheet as the "Designated Area." When a location has been designated by you and approved by us, it will become part of this subparagraph 2.A as if originally stated. If a Facility is not "under control" within 180 days from the date of this Agreement (as defined in subparagraph 5.A), we may grant you an extension of time to locate a Facility or terminate this Agreement. You accept the license and undertake the obligation to operate the Facility using the Trademarks and the System in compliance with the terms and conditions of this Agreement.
- B. Opening. You agree that the Facility will be open and operating in accordance with the requirements of subparagraph 5.A within not later than six months after you sign a lease or 12 months after you sign this Agreement, whichever occurs first, unless we authorize in writing an extension of time.
You may not open your Facility for business until: (1) you have complied with all requirements regarding site selection and construction of the Facility; (2) we determine that your Facility has been constructed, decorated, furnished, equipped and stocked with equipment, materials and supplies in accordance with plans and specifications we have approved; (3) the initial training program we provided has been completed to our satisfaction by all required persons; (4) the initial franchise fee and all other amounts due to us have been paid; (5) you have furnished us
with all certificates of insurance required by this Agreement; (6) you have obtained all required governmental permits, licenses and authorizations necessary for the operation of your Business; (7) you are in full compliance with all the terms of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Authorized Location for an Alloy facility must be at the location identified on the Data Sheet, which must be designated within 90 days from the date of the Franchise Agreement. This location must also be within the area defined as the "Designated Area" on the Data Sheet. Once Alloy approves the location, it becomes part of the agreement as if it were originally stated.
If the franchisee does not have the location "under control" within 180 days from the date of the Franchise Agreement, Alloy may grant an extension or terminate the agreement. The franchisee must open and operate the Alloy facility within six months after signing a lease or 12 months after signing the Franchise Agreement, whichever comes first, unless Alloy provides a written extension.
It is important to note that the franchise granted is specifically for operating a facility at the Authorized Location only. The franchisee does not receive a protected territory or exclusive area. Alloy and its affiliates retain the right to issue franchises or operate competing businesses at any other location and through alternative channels of distribution. Certain locations, termed "Special Sites," such as military bases, airports, college campuses, and malls, are excluded from the Development Territory and Alloy reserves the right to develop or franchise these locations.