What is the earliest an Alloy franchisee can notify the franchisor of their intent to renew the franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
15.P below and the Data Sheet and ends 10 years from the date of this Agreement, subject to any modifications in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee who wishes to renew their franchise agreement must provide written notice to Alloy of their intent to renew at least 6 months prior to the end of the current term. The franchisee cannot provide this notice any earlier than 12 months before the current term expires. Therefore, the earliest an Alloy franchisee can notify Alloy of their intent to renew is 12 months before the end of the current franchise agreement term.
To be eligible for renewal, the Alloy franchisee must meet several conditions. These include signing the then-current form of the franchise agreement, complying with modernization requirements, not being in default of the agreement, renewing the facility lease, complying with training requirements, paying a $5,000 renewal fee, and executing a general release of claims. The new franchise agreement may have different terms, including higher fees, so franchisees should carefully review the new agreement before deciding to renew.
It is important to note that Alloy has the option to grant the renewal agreement, provided the franchisee meets all the outlined conditions. Meeting the minimum notification period of 6 to 12 months is only one of several requirements. Failing to meet any of the listed conditions could result in Alloy denying the renewal, even if the franchisee provides timely notice. This is a fairly standard renewal process in franchising, as franchisors typically want to ensure that franchisees are in good standing and up-to-date with current brand standards before granting a renewal.