What are the conditions that must be met for an Alloy developer to develop a facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You are bound by the development schedule set forth in Appendix B (the “Development Schedule”).
Time is of the essence for the development of each Facility in accordance with the Development Schedule.
Each Facility must be developed and operated pursuant to a separate Franchise Agreement that you enter into with us pursuant to Section 4.B below.
- C.
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.
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.
Good Standing.
You must not be in default of this Agreement, any Franchise Agreement entered into pursuant to this Agreement or any other agreement between you or any of your affiliates and us or any of our affiliates.
You also must have satisfied, on a timely basis, all monetary and other material obligations under the Franchise Agreements for all of your existing Facilities.
Execution of Franchise Agreement.
You and we must enter into our thencurrent form of Franchise Agreement for the proposed Facility.
You understand that we may modify the then-current form of Franchise Agreement from time to time and that it may be different from the current form of Franchise Agreement, including imposing different and higher fees and obligations.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, several conditions must be met for a developer to develop a facility. The developer must adhere to the Development Schedule outlined in Appendix B. They are required to enter into Franchise Agreements by the dates specified in the Development Schedule and must also meet the schedule's requirements for the opening date of each facility and the cumulative number of facilities operating in the Development Territory. Failure to comply with the Development Schedule gives Alloy the right to terminate the agreement immediately.
Prior to executing a Franchise Agreement, at least 60 days beforehand, the developer must submit a franchise application, financial statements, and other information regarding their operations and the proposed facility. This includes investment and financing plans. The developer must also receive written confirmation from Alloy that they meet the current standards for franchisees, including financial capability criteria. This requirement is in place to ensure the proper development and operation of facilities and to maintain the reputation and goodwill of the Alloy brand.
The developer must not be in default of the Development Agreement, any Franchise Agreement, or any other agreement with Alloy or its affiliates. They must also have satisfied all monetary and other material obligations under the Franchise Agreements for their existing facilities. Finally, both the developer and Alloy must enter into the then-current form of Franchise Agreement for the proposed facility. Alloy may modify the Franchise Agreement from time to time, potentially imposing different and higher fees and obligations.