How does Alloy define an 'Owner' in the context of the franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
C. "Owner" means any person or entity who, now or hereafter, directly or indirectly owns an interest in the developer when the developer is a corporation, limited liability company, or a similar entity other than a partnership entity. If the developer is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the developer is one or more individuals, each individual is an Owner of the developer. Your Owner(s) are identified on the Data Sheet. Every time there is a change in the persons who are your Owners, you must, within 10 days from the date of each change, update the Data Sheet. As used in this Agreement, any reference to Owner includes all Owners.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the term 'Owner' is specifically defined within the context of the franchise agreement. For developers structured as corporations, limited liability companies, or similar entities (excluding partnerships), an Owner is any person or entity that directly or indirectly owns an interest in the developer, whether now or in the future.
For developers structured as partnerships, each general partner is considered an Owner, irrespective of their percentage of ownership. If the developer consists of one or more individuals, each individual is considered an Owner. The specific Owners are identified on the Data Sheet associated with the franchise agreement, and any changes to the Owners must be updated on the Data Sheet within 10 days of the change.
This definition is important because the franchise agreement may impose obligations and responsibilities on Owners, such as confidentiality agreements and guarantees. Prospective franchisees should carefully review the definition of 'Owner' and understand the implications for all individuals or entities involved in the ownership structure of the franchise.