What is the deadline for opening and operating the Alloy Facility after signing the Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Opening. You agree that the Facility will be open and operating in accordance with the requirements of subparagraph 5.A within not later than six months after you sign a lease or 12 months after you sign this Agreement, whichever occurs first, unless we authorize in writing an extension of time.
You may not open your Facility for business until: (1) you have complied with all requirements regarding site selection and construction of the Facility; (2) we determine that your Facility has been constructed, decorated, furnished, equipped and stocked with equipment, materials and supplies in accordance with plans and specifications we have approved; (3) the initial training program we provided has been completed to our satisfaction by all required persons; (4) the initial franchise fee and all other amounts due to us have been paid; (5) you have furnished us
with all certificates of insurance required by this Agreement; (6) you have obtained all required governmental permits, licenses and authorizations necessary for the operation of your Business; (7) you are in full compliance with all the terms of this Agreement; and (8) you have 75 members who have joined during the pre-sale marketing campaign, including a signed membership agreement and a verified credit card on file.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee must have their facility open and operating within six months of signing a lease or twelve months of signing the Franchise Agreement, whichever comes first. This timeline is subject to written authorization for an extension of time from Alloy.
However, the franchisee cannot open for business until they have met several requirements. These include complying with site selection and construction requirements, ensuring the facility meets Alloy's approved plans, completing the initial training program, paying all due fees, providing required insurance certificates, obtaining necessary governmental permits, and being in full compliance with the Franchise Agreement terms. Additionally, the franchisee must have secured 75 members during the pre-sale marketing campaign, with signed membership agreements and verified credit cards on file.
These pre-opening obligations and the potential for delays in meeting them represent a significant risk for prospective Alloy franchisees. Failure to meet these obligations or open by the specified date could lead to financial losses and potential legal action from Alloy. Franchisees should carefully consider these factors and ensure they have a solid plan and adequate resources to meet all requirements within the given timeframe.