What is the deadline for an Alloy developer to submit information to Alloy regarding a proposed Facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a developer must submit information to Alloy regarding a proposed Facility at least 60 days prior to the earlier of two dates. The first date is the date set forth in the Development Schedule by which the developer must execute a Franchise Agreement. The second date is the actual date on which the Franchise Agreement would be executed. This submission must include a franchise application for the proposed Facility, financial statements, and other information regarding the developer, the operation of any other Facilities within the Development Territory, and the development and operation of the proposed Facility, including investment and financing plans.
This requirement ensures Alloy has ample time to evaluate the proposed site and the franchisee's financial capabilities before a Franchise Agreement is executed. It allows Alloy to maintain brand standards and ensure that new locations have a higher chance of success. The 60-day window provides a buffer for Alloy to conduct necessary due diligence, request additional information, and provide feedback to the developer.
For a prospective Alloy franchisee, this means careful planning and timely submission of all required documents are crucial. Failure to meet this deadline could delay the opening of the Facility or potentially lead to a breach of the Development Agreement. Franchisees should work closely with Alloy to understand the specific requirements and timelines for each proposed location to avoid any complications.