Is the development schedule for Alloy Facilities flexible?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
onditions of the Franchise Agreement
control the establishment and operation of such Facility. You must execute the Franchise Agreement for the first Facility to be developed hereunder simultaneously with the execution of this Agreement.
DEVELOPMENT SCHEDULE
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- The following provisions control with respect to your development rights and obligations:
- A. You are bound by and strictly must follow the Development Schedule. By the dates set forth in the Development Schedule, you must enter into Franchise Agreements with us pursuant to this Agreement for the number of Facilities described in the Development Schedule. 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.
- B.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the development schedule is not flexible. Alloy requires strict adherence to the development schedule outlined in the franchise agreement.
The franchise agreement states that franchisees are bound by and must strictly follow the Development Schedule. This schedule includes specific dates for entering into Franchise Agreements, opening each Alloy facility, and maintaining a cumulative number of continuously operating facilities within the Development Territory. Failure to meet these deadlines can result in immediate termination of the Development Agreement.
Alloy emphasizes the importance of adhering to the development schedule, stating that "time is of the essence" for the development of each facility. Franchisees are obligated to open all facilities on the dates specified in the Development Schedule, regardless of increased investment requirements, the financial condition of prior facilities, or any other circumstances.
While the document acknowledges that investment expenses may increase over time, it does not offer any flexibility regarding the development schedule itself. This means prospective Alloy franchisees should carefully assess their ability to meet the outlined deadlines before entering into a development agreement, as failure to do so could have significant consequences.