What conditions must be satisfied for a transfer of the Alloy Franchise Agreement to be approved?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Conditions of Transfer.
We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
Assignee Requirements.
The assignee must meet all of our then-current requirements for our ALLOY franchise program we are offering at the time of the proposed transfer and sign our then-current form of franchise agreement modified to reflect the term remaining under this Agreement.
Payment of Amounts Owed.
All amounts owed by you to us, or any of our affiliates, your suppliers or any landlord for the Facility premises and Facility, or upon which we or any of our affiliates have any contingent liability must be paid in full.
Reports.
You must have provided all required reports to us in accordance with subparagraphs 9.H and I.
Modernization.
You must have complied with the provisions of subparagraph 5.E.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise agreement must meet several conditions to gain Alloy's consent. Alloy emphasizes that the original agreement was based on the franchisee's specific qualifications, so any transfer requires careful consideration.
First, the proposed assignee must meet all of Alloy's then-current requirements for new franchisees, and they must sign the current franchise agreement, adjusted for the remaining term. Second, all outstanding payments owed by the franchisee to Alloy, its affiliates, suppliers, or the landlord must be paid in full. This includes any contingent liabilities that Alloy or its affiliates might have. The franchisee must also have submitted all required reports to Alloy as outlined in the agreement.
Additionally, the franchisee must have complied with modernization requirements as specified in the agreement. While the specific details of these modernization requirements are not detailed in this section, it implies that Alloy requires franchisees to keep their facilities updated. Overall, Alloy retains significant control over who can become a franchisee and ensures that any new franchisee meets their standards and that all financial obligations are settled before a transfer is approved.