What background documents or evidence may Alloy require from an Alloy franchisee when submitting a written request to approve a proposed supplier for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
site). We may conduct on-site evaluations, as we deem advisable, as part of our evaluation of the site for the Facility. We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct. - 3. Your Submission of Information. You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.
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- Your Compliance with Our Then-Current Standards for Franchisees. You must receive written confirmation from us that you meet our then-current standards for franchisees, including financial capability criteria for the development of a new Facility. You acknowledge and agree that this requirement is necessary to ensure the proper development and operation of your Facilities, and to preserve and enhance the reputation and goodwill of all ALLOY facilities and the goodwill of the Trademarks. Our confirmation that you meet our then-current standards for the development of a new Facility, however, does not in any way constitute a guaranty by us as to your success.
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- Good Standing.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Alloy requires a franchisee to furnish various documents when seeking approval for a proposed facility. Specifically, at least 60 days before the earlier of the date in the Development Schedule for executing a Franchise Agreement or the actual execution date, the franchisee must submit a franchise application, financial statements, and other information. This information pertains to the franchisee, the operation of any existing facilities within the Development Territory, and the development and operation of the proposed facility, including investment and financing plans.
Alloy also requires written confirmation that the franchisee meets their then-current standards, including financial capability criteria for developing a new facility. This requirement ensures the proper development and operation of facilities and preserves the reputation and goodwill of all Alloy facilities and trademarks. However, Alloy clarifies that their confirmation does not guarantee the franchisee's success.
Additionally, the franchisee must not be in default of any agreements with Alloy or its affiliates and must have satisfied all monetary and material obligations under existing Franchise Agreements. Finally, both the franchisee and Alloy must enter into the then-current form of Franchise Agreement for the proposed facility, which may include different and higher fees and obligations than previous agreements.