Does Alloy have to consent to a transfer if all conditions are met?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not unreasonably withhold our consent to transfer, provided we determine that all of the conditions described in this Paragraph 11 have been satisfied.
Application for our consent to a transfer and tender of the right of first refusal provided for in subparagraph 11.F must be made by submission of our form of application for consent to transfer, which must be accompanied by the documents we request and other required information.
The application must indicate whether you or an Owner proposes to retain a security interest in the property to be transferred.
No security interest may be retained or created, however, without our prior written consent and except upon conditions acceptable to us.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy will not unreasonably withhold consent to a transfer if all the conditions described in Paragraph 11 of the agreement have been satisfied.
To initiate a transfer, a franchisee must submit Alloy's form of application for consent to transfer, accompanied by requested documents and information. This application must specify whether the franchisee or an owner intends to retain a security interest in the property being transferred. Alloy's prior written consent is required for any security interest to be retained or created, and it must be under conditions acceptable to Alloy.
This clause protects the franchisee by preventing Alloy from arbitrarily denying a transfer request when the franchisee has met all requirements. However, it also protects Alloy by ensuring that the new franchisee meets their standards and that any outstanding financial or legal issues are resolved before the transfer is completed. Franchisees should carefully review Paragraph 11 to understand all conditions required for a transfer and ensure they are met to avoid any potential delays or denial of the transfer.