What must an Alloy developer comply with regarding the cumulative number of facilities to be open?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You also must comply with the Development Schedule requirements regarding (i) the opening date for each Facility and (ii) the cumulative number of Facilities to be open and continuously operating for business in the Development Territory.
If you fail to either execute a Franchise Agreement or to open an Facility according to the dates set forth in this Agreement or otherwise fail to comply with the Development Schedule, we have the right to immediately terminate this Agreement pursuant to Section 7.B.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a developer must comply with the Development Schedule requirements regarding the cumulative number of Alloy facilities to be open and continuously operating for business in the Development Territory. The Development Schedule outlines the dates by which the developer must enter into Franchise Agreements and open facilities. Failure to comply with the Development Schedule, including meeting the required opening dates or the cumulative number of open facilities, gives Alloy the right to immediately terminate the Development Agreement.
This requirement ensures that the developer is actively expanding the Alloy brand within the designated territory according to the agreed-upon timeline. It holds the developer accountable for meeting specific milestones for opening and operating facilities. This obligation exists regardless of a greater investment requirement, the financial condition or performance of prior facilities, or any other circumstances, financial or otherwise.
For a prospective Alloy developer, this means carefully reviewing and understanding the Development Schedule before signing the Development Agreement. The developer needs to assess their financial and operational capabilities to ensure they can meet the required timelines for opening multiple facilities. Failing to meet these requirements can result in the termination of the Development Agreement and the loss of development rights for the territory.