To whom must the Alloy developer assign their right, title, and interest in telephone numbers upon termination?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Except as specifically permitted under any then-effective Franchise Agreement, you must assign to us or our designee all your right, title, and interest in and to your telephone numbers and must notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number in any regular, classified or other telephone directory listing associated with the Trademarks and to authorize transfer of same at our direction.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, the developer must assign all rights, title, and interest in their telephone numbers to Alloy or its designee. The developer is also responsible for notifying the telephone company and all listing agencies about the termination or expiration of their right to use any telephone number associated with Alloy's trademarks in any directory listing. They must also authorize the transfer of the telephone numbers as directed by Alloy.
This requirement ensures that Alloy maintains control over its brand identity and customer communications even after a Development Agreement ends. By assigning the telephone numbers to Alloy, the brand can continue to serve customers in the territory without confusion. This is a fairly standard practice in franchising, as it protects the brand's goodwill and ensures a smooth transition if a developer leaves the system.
For a prospective Alloy developer, this means that any phone numbers used for the business must be transferred back to Alloy upon termination or expiration of the agreement. This includes updating listings and working with the phone company to facilitate the transfer. It is important to factor this into the business's operational wind-down plan should the agreement end, as it could impact customer communication during and after the transition.