What is the cure period for an Alloy franchisee's default related to failure to pay amounts due?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in this subparagraph 13.B or elsewhere in the Agreement: (i) you will have 30 days from the date of our issuance of a written notice of default to cure any default under this Agreement, other than a failure to pay amounts due or submit required reports, in which case you will have 10 days to cure those defaults; (ii) your failure to cure a default within the 30-day or 10-day period will provide us with good cause to terminate this Agreement; (iii) the termination will be accomplished by mailing or delivering to you written notice of termination that will identify the grounds for the termination; and (iv) the termination will be effective immediately upon our issuance of the written notice of termination.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee fails to pay amounts due or submit required reports, they have 10 days from the date of written notice to cure the default. If the franchisee does not cure the default within this 10-day period, Alloy has grounds to terminate the Franchise Agreement. The termination is enacted through a written notice identifying the grounds for termination and becomes effective immediately upon issuance.
This short cure period for payment defaults underscores the importance of maintaining sound financial management as an Alloy franchisee. Failing to remit payments on time can quickly lead to termination of the franchise agreement. This is a stricter timeline than the standard 30-day cure period for other types of defaults, highlighting the critical nature of financial obligations in the franchise relationship.
Prospective franchisees should be aware of this relatively short cure period and ensure they have systems in place to manage payments effectively. It is also important to understand what constitutes a 'required report' and ensure timely submission to avoid triggering a default. Franchisees should clarify with Alloy what specific documentation or procedures are required to demonstrate that a payment default has been cured within the 10-day window.