What are the consequences if the 'PRINCIPAL ACKNOWLEDGMENT' is not properly executed for Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule E to the Franchise Agreement
ACKNOWLEDGMENT ADDENDUM TO ALLOY FRANCHISE AGREEMENT
THIS ACKNOWLEDGEMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN OR BUSINESSES TO BE LOCATED IN ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
As you know, you and we are entering into a Franchise Agreement for the operation of an ALLOY franchise. Please review each of the following questions carefully and provide honest responses to each question.
**Acknowledgments and Representations
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 FDD, the consequences for not properly executing the 'Acknowledgment Addendum' for Alloy depend on the franchisee's location. Specifically, the addendum does not apply to candidates or businesses located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
For franchisees outside of these specified states, the 'Acknowledgment Addendum' is a required part of the Franchise Agreement. This addendum includes a series of questions that the franchisee must review and answer honestly. While the FDD excerpt does not explicitly state the consequences of failing to properly execute this addendum, it emphasizes the importance of providing honest responses.
Prospective Alloy franchisees should carefully review the 'Acknowledgment Addendum' and ensure they understand the implications of their responses. If there are any uncertainties, they should seek legal counsel to ensure full compliance. For candidates located in the listed states, a separate rider addresses specific state law requirements, superseding any conflicting terms in the standard agreement.