What documents does Alloy require to be submitted with the application for consent to transfer?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ut our prior written consent.
- B. Consent to Transfer. We will not unreasonably withhold our consent to transfer, provided we determine that all of the conditions described in this Paragraph 11 have been satisfied. Application for our consent to a transfer and tender of the right of first refusal provided for in subparagraph 11.F must be made by submission of our form of application for consent to transfer, which must be accompanied by the documents we request and other required information. The application must indicate whether you or an Owner proposes to retain a security interest in the property to be transferred. No security interest may be retained or created, however, without our prior written consent and except upon conditions acceptable to us. Any agreement used in connection with a transfer will be subject to our prior written approval, which approval will not be withheld unreasonably. You immediately must notify us of any proposed transfer and must submit promptly to us the application for consent to transfer and any other required documents and information.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee intends to transfer their franchise, they must submit Alloy's form of application for consent to transfer. This application must be accompanied by the documents Alloy requests and other required information.
In addition to the application and required documents, the franchisee must also tender the right of first refusal to Alloy. The application itself must indicate whether the franchisee or an owner plans to retain a security interest in the property being transferred. Alloy's consent is needed for any security interest to be retained or created, and this is subject to conditions acceptable to Alloy.
It is important for prospective franchisees to understand that any attempted transfer without Alloy's prior written consent, or that does not comply with the terms of the Franchise Agreement, will be considered void. In such cases, the franchisee's interest in the agreement will be voluntarily abandoned. This gives Alloy the right to either deem the franchisee in default and terminate the agreement or to collect a transfer fee equal to two times the standard transfer fee. The standard transfer fee is $10,000, so an unapproved transfer could result in a $20,000 fee.