By what date must an Alloy franchisee sign the Franchise Agreement for the second 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, if a franchisee enters into an Area Development Agreement, the date by which they must sign the Franchise Agreement for their second facility is within one year after the effective date of the agreement. They must also have the facility opened and continuously operating for business within two years of the effective date of the agreement.
This requirement is part of a broader Minimum Performance Schedule that Alloy sets for franchisees with Area Development Agreements. This schedule outlines the dates by which franchisees must sign franchise agreements and open facilities to maintain their rights under the Area Development Agreement. Failure to meet these deadlines can result in a loss of territorial exclusivity or even termination of the Area Development Agreement.
For prospective Alloy franchisees, this means careful planning and execution are crucial. Securing suitable locations, negotiating leases, and completing build-outs all need to happen within the specified timeframes. Franchisees should work closely with Alloy to ensure they are on track to meet these deadlines and avoid potential penalties. The effective date of the agreement is a critical starting point for these timelines, so understanding this date is essential for managing the development schedule.