What must an Alloy developer comply with regarding the opening date for each facility?
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.
Time is of the essence for the development of each Facility in accordance with the Development Schedule.
You may not open your Facility for business until we have notified you in writing that you have satisfied your pre-opening obligations as set forth in subparagraphs 5.A and 5.B and we have consented to your opening date. We are not responsible or liable for any of your pre-opening obligations, losses or expenses you might incur for your failure to comply with these obligations or your failure to open by a particular date.
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 developer must comply with the Development Schedule requirements regarding the opening date for each Alloy facility. The developer is bound by and must strictly follow the Development Schedule. If the developer fails to open a facility according to the dates set forth in the agreement or otherwise fails to comply with the Development Schedule, Alloy has the right to immediately terminate the agreement. Time is of the essence for the development of each facility in accordance with the Development Schedule.
Furthermore, the Alloy franchisee may not open their facility for business until Alloy has notified them in writing that they have satisfied their pre-opening obligations and Alloy has consented to the opening date. Alloy is not responsible or liable for any of the franchisee's pre-opening obligations, losses, or expenses incurred for failure to comply with these obligations or failure to open by a particular date.
In addition to the Development Schedule, the franchisee must comply with requirements regarding site selection and construction, ensure the facility is constructed and equipped according to Alloy's approved specifications, complete the initial training program, pay all required fees, furnish certificates of insurance, obtain necessary governmental permits, and have at least 75 members who have joined during the pre-sale marketing campaign. The Alloy franchisee must also be in full compliance with all the terms of the Franchise Agreement.