What must an Alloy developer do with their telephone numbers upon termination of the Development Agreement, unless permitted by a Franchise Agreement?

According to Alloy's 2025 Franchise Disclosure Document, upon termination of the Development Agreement, a developer must assign all rights, titles, and interests in their telephone numbers to Alloy or its designee. The developer is also required to notify 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. This notification must authorize the transfer of the telephone numbers as directed by Alloy. This obligation applies unless specifically permitted otherwise under any then-effective Franchise Agreement.

This requirement ensures that Alloy maintains control over its brand identity and customer communications even after a Development Agreement is terminated. By assigning the telephone numbers to Alloy, the former developer cannot continue to use those numbers to represent themselves as being affiliated with Alloy. This prevents potential confusion among customers and protects Alloy's goodwill.

For a prospective Alloy franchisee, this means that upon termination of the Development Agreement, they will lose the right to use any telephone numbers associated with the Alloy brand, unless their Franchise Agreement specifically allows them to retain those numbers. This is a standard practice in franchising to ensure brand consistency and prevent misuse of the franchisor's trademarks after a business relationship ends. It is important for potential developers to understand these obligations and consider the implications for their business operations should the Development Agreement be terminated.