By what date must an Alloy franchisee sign the Franchise Agreement for the first facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Facility Number | Date by Which Franchise Agreement Must be Signed | Date by Which the Facility Must be Opened and Continuously Operating for Business in the Territory | Cumulative number of Facilities Required to be Open and Continuously Operating for Business in the Development Territory as of the Date in Preceding Column |
|---|---|---|---|
| 1 | Effective Date of the Agreement | Within 1 year of the Effective Date of the Agreement | 1 |
| 2 | Within 1 year after the Effective Date of the Agreement. | Within 2 years of the Effective Date of the Agreement | 2 |
| 3 | Within 2 years after the Effective Date of the Agreement | Within 3 years of the Effective Date of this Agreement | 3 |
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the deadline for signing the Franchise Agreement for the first facility is dependent on the effective date of the agreement. Specifically, the franchisee must sign the Franchise Agreement by the effective date of the agreement.
For the second facility, the Franchise Agreement must be signed within one year after the effective date of the agreement. For the third facility, the Franchise Agreement must be signed within two years after the effective date of the agreement.
These deadlines are part of a broader Minimum Performance Schedule that Alloy franchisees must adhere to if they enter into an Area Development Agreement. Failing to meet these deadlines can result in a loss of territorial exclusivity or termination of the Area Development Agreement.