What is the 'Development Schedule' for Alloy facilities, and where can I find it?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
der:
- A. We grant to you, under the terms and conditions of this Agreement, the right to develop and operate the number of ALLOY Facilities set forth in Appendix B (the "Facilities") within the territory described on Appendix C (the "Development Territory").
- B. You are bound by the development schedule set forth in Appendix B (the "Development Schedule"). Time is of the essence for the development of each Facility in accordance with the Development Schedule. Each Facility must be developed and operated pursuant to a separate Franchise Agreement that you enter into with us pursuant to Section 4.B below.
- C. If you are in compliance with the Development Schedule, we will not develop or operate or grant anyone else a franchise to develop and operate a ALLOY facility (except for Special Sites as defined in Section 2.D or as otherwise set forth in this Agreement) in the Development Territory prior to the earlier of (i) the expiration or termination of this Agreement; (ii) the date on which you must execute the Franchise Agreement for your last Facility pursuant to the terms of the Development Schedule or (iii) the date on which the Authorized Location for your final Facility under this Agreement is determined. Notwithstanding anything in this Agreement, upon the earliest occurrence of any of the foregoing events (a) your right to develop any additional Facility will expire and (b) we will be entitled to develop and operate, or to franchise others to develop and operate, ALLOY facilities in the Development Territory, except as may be otherwise provided under any Franchise Agreement that has been executed between us and you and that has not been terminated. At the time you execute your final Franchise Agreement under the Development Schedule, you must have an Authorized Location for the Facility to be developed under the final Franchise Agreement.
- D. The rights granted under this Agreement are limited to the right to develop Facilities located in the Development Territory, and do not include (i) any right to sell products and services identified by the Trademarks at any location or through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), other than at Facilities within the Development Territory pursuant to the terms of the applicable Franchise Agreement, (ii) any right to sell products and services identified by the Trademarks to any person or entity for resale or further distribution, or (iii) any right to exclude, control or impose conditions on our development or operation of franchised, company or affiliate owned facilities at
any time or at any location outside of the Development Territory. You may not use the words ALLOY or any of the other Trademarks as part of the name of your corporation, partnership, limited liability company or other similar entity.
You acknowledge and agree that we and our affiliates have the right to operate and franchise others the right to operate facilities or any other business within and outside the Development Territory under trademarks other than the ALLOY Trademarks, without compensation to any franchisee, except that our operation of, or association or affiliation with, facilities (through franchising or otherwise) in the Development Territory that compete with ALLOY facilities will only occur through some form of merger or acquisition with an existing facility or retail chain business.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Development Schedule outlines the timeline and requirements for establishing Alloy facilities. The Development Schedule is initially mentioned in Item 23, concerning receipts, and is further detailed in Appendix B of the agreement.
The Development Schedule specifies the dates by which a franchisee must enter into Franchise Agreements for a certain number of Alloy facilities. It also includes requirements for the opening dates of each facility and the cumulative number of facilities that must be open and operating within the Development Territory. Franchisees are strictly bound to follow this schedule.
Failure to adhere to the Development Schedule, such as not executing a Franchise Agreement or not opening a facility by the specified dates, can result in the immediate termination of the Development Agreement. Before executing a Franchise Agreement, franchisees must submit a franchise application, financial statements, and other required information at least 60 days prior to the deadline specified in the Development Schedule. Alloy must also confirm that the franchisee meets their standards for developing a new facility.
The term of the Development Agreement, including all rights granted to the franchisee, expires on the date the last Alloy facility is scheduled to open under the Development Schedule. This schedule is a critical component of the agreement, ensuring timely and consistent expansion of the Alloy franchise system.