What is the consequence if the Alloy franchisee fails to complete construction in compliance with Alloy's requirements?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must construct and equip each Facility in strict accordance with our thencurrent approved specifications and standards pertaining to equipment, inventory, signage, fixtures, design and layout of the building.
You may not commence construction on any Facility until you have received our written consent to your building plans.
Without limiting the generality of the prior paragraph, you must promptly after obtaining possession of the site for the Facility: (i) contact and retain our designated construction manager or an architect that meets our approval and have prepared and submitted for our approval a site survey and basic architectural plans and specifications consistent with our general buildout, image, color scheme and décor requirements as set forth in the Manuals for an ALLOY Facility (including requirements for dimensions, exterior design, materials, interior design and layout, equipment, fixtures, furniture and signage); (ii) purchase or lease and then, in the construction of the Facility, use only the approved building materials, equipment, fixtures, audio visual equipment, furniture and signage; (iii) complete the construction and/or remodeling, equipment, fixtures, furniture and sign installation and decorating of the Facility in full and strict compliance with plans and specifications we approve and all applicable ordinances, building codes and permit requirements without any unauthorized alterations; (iv) obtain all customary contractors' sworn statements and partial and final waivers, obtain all necessary permits, licenses and architectural seals and comply with applicable legal requirements relating to the building, signs, equipment and premises, including, but not limited to, the Americans With Disabilities Act; and (v) obtain and maintain all required zoning changes, building, utility, health, sanitation, and sign permits and licenses and any other required permits and licenses. It is your responsibility to comply with the foregoing conditions.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must construct and equip each facility in strict accordance with Alloy's approved specifications and standards for equipment, inventory, signage, fixtures, design, and layout. Franchisees cannot commence construction until Alloy provides written consent to the building plans.
Alloy requires franchisees to promptly contact and retain their designated construction manager or an architect that meets their approval to prepare and submit a site survey and basic architectural plans and specifications consistent with Alloy's buildout, image, color scheme, and décor requirements. Franchisees must use only approved building materials, equipment, fixtures, audio-visual equipment, furniture, and signage during construction. They must complete construction and/or remodeling in full compliance with approved plans, specifications, ordinances, building codes, and permit requirements without unauthorized alterations.
While the FDD excerpts outline the construction requirements and the need for Alloy's approval, they do not explicitly state the consequences of failing to complete construction in compliance with Alloy's requirements. It is important for prospective franchisees to discuss with Alloy what specific actions or penalties may result from non-compliance during the construction phase. This could include construction delays, additional costs, or potential termination of the franchise agreement.