What must an Alloy developer do regarding site selection for a new facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
protect the distinction, goodwill and uniformity symbolized by the Trademarks and the System. Accordingly, you agree to maintain and comply with our quality standards and agree to the following terms and conditions:
- A. Facility; Site Under Control. You are responsible for leasing a site that meets our site selection guidelines. We must consent to the site in writing. You may not use the Facility
premises for any purpose other than the operation of an ALLOY Facility during the term of this Agreement or any Interim Period. We make no guarantees concerning the success of the Facility located on any site to which we consent.
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. We also are entitled to injunctive relief or specific performance under subparagraph 12.C for your failure to comply with your obligations.
You and your landlord must sign the Lease Addendum attached as Schedule B. We recommend you submit the Lease Addendum to the landlord at the beginning of your lease review and negotiation, although the terms of the Lease Addendum may not be negotiated without our prior approval. If the landlord requires us to negotiate the Lease Addendum, we reserve the right to charge you a fee, which will not exceed our actual costs associated with the negotiation. You must provide us a copy of the executed lease and Lease Addendum within 5 days of its execution. We have no responsibility for the lease; it is your sole responsibility to evaluate, negotiate and enter into the lease for the Facility premises.
You must execute, and provide us an executed copy of your lease (including an executed copy of the Lease Addendum) or the purchase agreement for the selected and approved site for your Facility within 180 days from the date of execution of this Agreement. If you fail to have your "site under control" (you and we agree on a site and you execute a lease or purchase agreement for the site) within 180 days after the date of execution of this Agreement, we will have the right to terminate this Agreement without opportunity to cure pursuant to subparagraph 13.B.2.
B. Construction; Future Alteration. You must construct and equip the Facility in strict accordance with our current approved specifications and standards pertaining to equipment, signage, fixtures, furnishings, and design and layout of the building. You may not commence construction of the Facility until you have received our written consent to your layout plans.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are responsible for securing a site that adheres to Alloy's site selection guidelines, and Alloy must provide written consent for the chosen site. The franchisee cannot utilize the facility premises for any purpose other than operating an Alloy facility during the term of the agreement. Alloy offers no guarantees regarding the success of the facility at any approved site.
Before opening, Alloy must notify the franchisee in writing that they have met all pre-opening obligations. Alloy is not liable for any pre-opening obligations, losses, or expenses incurred if the franchisee fails to comply with these obligations or open by a specific date. Alloy also retains the right to seek injunctive relief or specific performance if the franchisee fails to meet their obligations.
Within 90 days of the agreement date, the franchisee must designate a location, referred to as the "Authorized Location," which Alloy must approve. This location must be within the "Designated Area" specified in the Data Sheet. If the site is not "under control" within 180 days of the agreement date, Alloy may either grant an extension or terminate the agreement. The facility must be open within six months of signing a lease or 12 months of signing the agreement, whichever comes first, unless Alloy provides a written extension.
After obtaining possession of the site, the franchisee must promptly contact Alloy's designated construction manager or an approved architect to prepare and submit a site survey and basic architectural plans. These plans must align with Alloy's buildout, image, color scheme, and décor requirements as outlined in the manuals. The franchisee must also use only approved building materials and equipment during construction.