What is the deadline for opening and operating the Alloy Facility after signing the lease?
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 Alloy facility open and operating within six months of signing the lease or twelve months of signing the Franchise Agreement, whichever comes first. However, Alloy may authorize a written extension of this timeframe.
This requirement ensures that franchisees promptly establish their businesses and begin operations. It also aligns with Alloy's interest in maintaining brand consistency and market presence. The franchisee is responsible for meeting all pre-opening obligations, and Alloy is not liable for any losses or expenses incurred if the franchisee fails to meet these obligations or open by the specified date.
In addition to the deadline, the FDD specifies several conditions that must be met before the Alloy facility can open for business. These include compliance with site selection and construction requirements, ensuring the facility is properly equipped and stocked, completing the initial training program, paying all due fees, providing required insurance certificates, obtaining necessary governmental permits and licenses, and securing a minimum of 75 members during the pre-sale marketing campaign. Meeting these requirements is essential for a successful launch and adherence to Alloy's standards.