What is the deadline for an Alloy franchisee to notify the franchisor of their intent to renew the franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
15.P below and the Data Sheet and ends 10 years from the date of this Agreement, subject to any modifications in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee must provide written notice of their intent to renew their franchise agreement at least 6 months, but no more than 12 months, prior to the end of the current term. The initial franchise agreement with Alloy typically lasts for 10 years, and the renewal term is also for 10 years. Therefore, a franchisee needs to make this decision and notify Alloy between 9 and 9.5 years into their initial agreement.
Missing this notification window could mean losing the opportunity to renew the franchise under the terms outlined in the franchise agreement. Alloy may grant the renewal if the franchisee meets several other conditions, including signing the then-current form of the franchise agreement (which may have different terms and higher fees), completing any required modernizations, remaining in good standing, renewing the facility lease, meeting training requirements, paying a $5,000 renewal fee, and executing a general release of claims.
It is important for prospective Alloy franchisees to understand all the conditions for renewal and to mark the notification deadline on their calendars to ensure they do not miss the opportunity to renew their franchise if they wish to continue operating their Alloy location. Franchise agreements often have specific notification windows, and missing these deadlines can have significant consequences for the franchisee's business.