What are considered 'Special Sites' for Alloy facilities, where Alloy might develop or franchise within my territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that certain locations within the Development Territory are by their nature unique and separate in character from sites generally developed as facilities. As a result, you agree that the following captive market locations ("Special Sites") are excluded from the Development Territory and we have the right to develop or franchise such locations: (1) military bases; (2) public transportation facilities (including airports); (3) business or industry locations (e.g. manufacturing site, office building), or sports facilities; (4) student unions or other similar buildings on college or university campuses; (5) malls or enclosed shopping centers; and (6) community and special events.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, certain locations are designated as "Special Sites" and are excluded from the franchisee's development territory. Alloy retains the right to develop or franchise these locations, even if they fall within the franchisee's designated area. This means that while a franchisee may have exclusive rights to a specific geographic territory, Alloy can still establish facilities at these Special Sites within that territory.
The Special Sites include: military bases; public transportation facilities such as airports; business or industry locations like manufacturing sites or office buildings, or sports facilities; student unions or similar buildings on college or university campuses; malls or enclosed shopping centers; and community and special events. These locations are considered unique and separate from typical Alloy facilities.
This provision allows Alloy to tap into captive markets and high-traffic areas that may not be suitable for a standard franchise location. For a prospective franchisee, this means that even with a protected territory, Alloy could still establish a presence in these specific locations, potentially impacting the franchisee's business. It is important for potential franchisees to understand this exception and consider its potential impact on their investment.