Can Alloy change the site selection criteria over the years?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The Site Selection information included in this section apply to a site for your Franchised Business under a Franchise Agreement and each of the locations that you develop under your Development Agreement (as we will approve the location for future outlets using our then-current criteria, which may change over the years (the current criteria and process are noted below). Within 180 days after you sign the Franchise Agreement, you must locate a site for your Franchised Business, obtain our acceptance of the proposed site, and enter into a lease, sublease or purchase agreement for the approved site. You may engage with our preferred real estate vendors to assist you in the search of your Alloy site. You must submit to us the information and materials we may reasonably require to allow us to review the proposed site. We generally do not own the premises and lease it to you. The factors which we consider in accepting your location include the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, competition from similar businesses and other similar factors.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy can change the site selection criteria over the years. The FDD specifies that Alloy will approve the location for future outlets using their then-current criteria, which may change over the years.
This means that the criteria Alloy uses to assess a potential site for a new franchise location at the time of the agreement may not be the same criteria used later on for additional locations under a Development Agreement. As a prospective franchisee, it's important to understand that the factors Alloy considers important in a location can evolve.
For a franchisee, this indicates a degree of uncertainty. While a location might initially meet Alloy's requirements, future locations may need to meet different standards. Therefore, it is important for prospective franchisees to maintain open communication with Alloy regarding any changes to site selection criteria and to understand the factors that drive these changes. This will help ensure that future site selections align with Alloy's evolving strategic direction.